EDITORIAL: What do business tax breaks do?

The company is investing $27.3 million to set up production. and that’s good news for Bedford, especially following a dark recession period when the plant was down to a skeleton crew and in danger of closing.

But GM managed to survive, and after restructuring became the new GM, one that has a fresh start and what should be a bright future — although the company’s recent massive recalls may be tarnishing that a bit.

Still, the Bedford foundry has new life, expanding its production from mostly transmission casings and added workers back over the past several years.

To aid in that cause, the company asked for and got a 10-year tax abatement that forgives 100 percent of taxes that would be owed on this new investment.

That’s a departure from the past, when abatement declined from 100 percent forgiveness to zero in increments of 10 percent, reaching zero after 10 years.

Abatements generally are tied to jobs added, as this one is.

A recent change in state law allows local governments to adopt their own abatement schedules that can permit up to a maximum 10-year, 100-percent abatement for job creation investment, rather than stick to the graduated formula formula. A company would be foolish not to ask for what they think they can get. Lawrence County officials made clear, though, that such abatements will not be automatic, setting a minimum job creation limit of 40 jobs before those maximum abatements will be considered.