GE unsure on tax credit application

LYNN – GE executives in Lynn are undecided on whether to pursue a controversial $25 million state tax credit proposed earlier this year and then withdrawn in November when it met with some harsh public criticism.Opponents of the tax break accused General Electric of threatening to eliminate manufacturing jobs in Lynn unless the credit was received from the state Office of Business Development. GE officials dismissed the accusations, asserting the company will continue to invest in the Lynn aircraft engine factory without the state tax assistance.Richard Gorham, a spokesman for GE operations in Lynn, said Thursday the company has not decided what direction it will take on the tax issue.”The application was withdrawn in November. It had been set for the review session in early December. We didn’t consider it a final version,” he said. “The next quarterly review cycle is March or April, but we’re not sure if we will definitively pursue it.”Gorham, no matter the outcome, insists GE will invest in Lynn.The company initially indicated it was prepared to invest $75 million in Lynn, an amount that would be boosted to $100 million with the tax credit.”Whether we go forth with that or other related collaboration with the state, we are still going to invest money in the Lynn facility. It’s going to be ours and the investment will still be fairly significant, but we’re not certain what the grand total will be,” he said.Gorham added GE might not invest the entire planned $75 million if the tax credit isn’t received.Production of the jet engine designed to propel the F-22 Joint Strike Fighter will play a key role in the future of the Lynn facility. If Congress agrees, GE will manufacture a second version of the fighter engine to supplement the primary production by competitor Pratt & Whitney.U.S. Rep. John F. Tierney, a Salem Democrat, said earlier this week that funding for the warplane will be available through March.”As of this morning, that’s the latest update on the Joint Strike Fighter,” Gorham said Thursday. “Come March, we will need to revisit all the congressional matters and try to secure full funding for next year. So basically we have a stay for projects already there, at least until the new Congress is sworn in after the holidays.”GE initially filed the tax-credit application through the state’s Economic Development Incentive Program.”If we got the tax credit, we could certainly do more,” Gorham said. “We have 3,150 full-time employees in Lynn and we want to keep them all.”Jeffrey Crosby, president of IUE-CWA Local 201, the largest labor union at GE Lynn, said the union supports the tax credit. “Anything that helps us keep jobs here in Lynn is a good thing,” he said.In the wake of GE’s tax-credit application withdrawal, the North Shore Chamber of Commerce and other business organizations publicly voiced support for the company and urged its executives to reapply.