S&S Cycle receives $14 million in tax credits
June 9, 2009
Filed under Features
In order to retain 180 employees, S&S Cycle is receiving $14 million in New Markets Tax Credits from the state of Wisconsin. Of the $14 million, $10.6 million represents a reinvestment from the company’s shareholders, according to the Wisconsin Housing and Economic Development Authority.
S&S Cycle will use the New Markets Tax Credit allocation to restructure a portion of its existing debt and provide working capital to support future business growth. This will be accomplished through its partnership with US Bank CDC, who purchased the credits. The New Markets Tax Credits also give the company the opportunity to execute its strategic plan, which includes a joint marketing agreement with ExxonMobil, the development of additional performance upgrades for Harley-Davidson motorcycles and investing in equipment to bring production of sourced products in-house.
“The projected impact of New Markets Tax Credits in this community was the driving force behind the approval of this deal,” Antonio Riley, Executive Director of WHEDA, said in the report. “Good paying, family-supporting jobs are at a premium these days, so we are using our access to resources to help companies like S&S Cycle preserve as many jobs as possible. This deal will go a long way toward the future success of their company.”