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From Home Furnishing Business
Ashley Gets Tax Credit, OK for Layoffs
August 25,
2014 by in Business Strategy, Industry 
A Wisconsin board overseeing the state's job creation agency has approved a $6 million tax credit for Ashley Furniture Inds. The credit includes a condition that would allow the company to eliminate half of its Wisconsin workforce.
As approved by the Wisconsin Economic Development Corp. board, the award would allow the Arcadia-based global furniture maker to move ahead with a $35 million expansion of its headquarters and keep 1,924 jobs in the state.
It wouldn't require Ashley to create any new jobs, instead granting the company license to lay off half of its current 3,848 Wisconsin-based workers in exchange for an enterprise zone tax credit, one of the most valuable and coveted state subsidies.
The board's decision has not been made public because a contract with the company has not been finalized. However, in a statement Friday, in response to questions from the State Journal, Ashley Furniture confirmed it is seeking state subsidies that include terms allowing for job reductions.
The company said it injected $394 million into the Wisconsin economy in 2013, including supporting 610 Wisconsin businesses.
"It is more expensive for Ashley to manufacture in Arcadia than it is to do so closer to its major markets," the company said. "The loss of Ashley's contributions to the regional economy of west-central Wisconsin would be catastrophic."
Read Entire Story Source: Pioneer Press