GE-Lynn looks to state for tax help

LYNN – GE-Lynn wants a $25 million state tax break to help ensure its aircraft engine factory remains viable and continues to employ more than 3,000 workers for years to come.The company has filed an application for the tax credits with the state’s Economic Development Incentive Program. The app-lication included a letter of support from Mayor Judith Flanagan Kennedy.Richard Gorham, a GE spo-kesman for Lynn operations, said the company plans to invest $75 million in the local plant, an amount that could increase to $100 million with the tax credits.”We have 3,150 full-time employees in Lynn and we would like to keep them all,” Gorham said Thursday. “We are committed to investing $75 million for a five- to six-year period anyway, but the tax break would heighten it because it would be reinvested back in.”Gorham said many GE Lynn employees are reaching retirement age. “Anywhere between 400 and 500 of our people could opt out for retirement very soon. We would back fill them and bring in new people for those jobs,” he said. “Our intention is to maintain the building and the number of people working in it. The state program we have applied to is on the up and up. I think both the state and GE see the benefits of maintaining a high level of manufacturing in Lynn.”Gorham said the tax credits would help GE “accelerate the infusion of new plant equipment.”According to Gorham, “We would be able to do more, coupled with what we are already committed to invest. We want to do everything we can to increase the viability of this location and this was an opportunity to partner with the state for the collective goal of maintaining manufacturing jobs in this city.”Kennedy said GE approached her last June to seek endorsement of the application.”I was asked to send a letter of support to the state as part of the incentive program application. If GE gets a $25 million tax break from the state, in return it would invest millions of dollars in the Lynn plant, guarantee retention of jobs here in Lynn, and begin a training program that could be used in conjunction with Lynn Tech or North Shore Community College.”Kennedy said the state Office of Business Development, which oversees the tax credit program, is expected to give GE an answer by March 2011.”GE has been a good neighbor and we would like to keep them here of course,” the mayor said. “It has very little down side for the city of Lynn. The tax credit would be coming from the state and GE would be renewing its commitment to the plant.”Jeffrey Crosby, president of IUE-CWA Local 201, the largest union at GE Lynn, said layoffs are not an issue. “We don’t expect any. There hasn’t been a single layoff in the last 10 years, at least,” he said, acknowledging that attrition has been a factor.”A tax break or anything that would help secure the plant would be positive,” Crosby said. “The difficulty is in the difference between what the company hopes to do and what they will absolutely agree to do.”The union president said any commitment made by the company is good for the Lynn workforce.”The local delegation and Gov. Patrick helped get the incentive program changed so that some of the tax credits could be used for manufacturing,” Crosby said. “Previously, it wasn’t for manufacturing. That change is key to making GE eligible to submit an application.”Kofi Jones, spokesman for state Secretary of the Office of Housing and Economic Development Greg Bialecki, said the tax credit program was recently reformed to emphasize retention of manufacturing jobs in gateway cities like Lynn.”The main focus of the Patrick administration is a commitment to keeping as many manufacturing jobs as possible in the commonwealth. We continue to collaborate with GE. Our goal is the same. We enjoy working together with the leadership at GE,” he said.According to the State House News Service, while speaking to reporters in his State House office Thursday, Patrick was asked whether he thought GE was putting a gun to his head?”If it