A Franklin company that makes race-car parts was recently given a tax break on a new piece of equipment.
The Franklin City Council agreed to give Rapid Prototype a five-year personal property tax abatement for a new piece of equipment worth $300,000.
The company will pay no taxes the first year, but its tax bill will increase 20% annually until it reaches the full amount. They are expected to pay just under $7,000 in taxes on the equipment over the course of five years. The company will save about $11,000, according to city documents.
The company will also pay a 5% economic development fee, city documents said.
Money from the economic impact fee has been used to pay for alley improvements, holiday lighting and to start a shared work space, said Krista Linke, Franklin’s community development director.
Rapid Prototype, which makes parts to specifications ordered by companies such as IndyCar, Penske and Axis Industries moved to the Franklin Business Park in 2018. City officials approved a seven-year tax break on the building, and a five-year tax break on equipment as part of its initial abatement when it came to town.
The company has kept its promises in regards to its initial abatement, Linke said.
The new piece of equipment should bring at least one new job. The company has 14 employees with an average hourly wage of $37.38, according to city documents.
