Darron Cummings | AP
Employees walk in the Carrier Corp. plant parking lot, Wednesday, Nov. 30, 2016, in Indianapolis. Carrier and President-elect Donald Trump reached an agreement to keep nearly 1,000 jobs in Indiana.
Indiana agreed to give United Technologies $7 million in tax breaks over a decade to persuade the industrial giant to keep roughly 1,000 Carrier jobs in the state, a source with knowledge of the situation told NBC News on Thursday.
Carrier, United Technologies’ heating and air conditioning unit, had planned to close a furnace plant in the state and move it to Mexico. Carrier will invest about $16 million in Indiana to keep operations there, the source told NBC.
United Technologies and the state have not announced the terms of the deal, but the company said Wednesday that state “incentives” were “an important consideration” for keeping the positions in Indiana. Carrier is still moving 600 jobs from the plant to Mexico, and closing another plant in Indiana that would move another 700 jobs, according to the The Wall Street Journal, which first reported the tax breaks on Thursday.
The incoming administration of President-elect Donald Trump, who repeatedly attacked Carrier and other companies for moving jobs out of the United States, negotiated the deal with United Technologies. Vice president-elect Mike Pence is the state’s former governor.
Trump and Pence are set to appear in Indiana later Thursday. Trump has cheered the deal in tweets since its announcement.
On the campaign trail, he warned of consequences for United Technologies, which gets about 10 percent of its revenue from federal government contracts.
Carrier did not immediately respond to a request for comment on the terms of the deal.