Arcadia-based Ashley Furniture has decided not to pursue a $6 million tax credit that the state’s job-creation agency board approved last year with terms that would have allowed the company to cut its state workforce in half.
state TAX CREDITS | FURNITURE MAKER DROPS BID
Ashley Furniture turns down controversial $6 million tax credit
The WEDC board approved $6 million that would have helped relocate part of a creek, which flooded the Ashley property and the nearby village of Arcadia in 2010.
The state's flagship job creation agency has had trouble tracking loans and is looking for its fifth CFO in four years.
According to a WEDC memo, the Arcadia-based furniture maker is planning a $35 million expansion.
The board OK'd a $6 million tax credit for a $35 million Ashley expansion that would allow 1,924 layoffs.
The statement came after the State Journal reported the company had sought state subsidies with no job creation guarantee.
