County IDB approves $2M tax cut for McNeilus Truck firm, adds 100 jobs

Scott Broden, Murfreesboro Daily News Journal
·3 min read

McNeilus won an amended $2 million property tax reduction Wednesday from Rutherford County officials to build custom truck components.

McNeilus Truck and Manufacturing, Inc. is a Minnesota-based company that's also part of Wisconsin-based Oshkosh Corporation. The amended arrangement with the Rutherford County Industrial Development Board involves adding 100 more jobs at a Murfreesboro factory for a new total of 225 positions.

"We're excited to be in the area," local McNeilus general manager Ryan Kumpf. He touted that his company is ready to market a zero emission garbage truck, Volterra™ ZSL™.

The garbage truck has earned three certifications from the United States Environmental Protection Agency (EPA) and California Air Resources Board (CARB), according to a press release from the company's office in Dodge Center, Minnesota.

"It was skillfully engineered with technologies and design features covered by more than 50 patents and patent applications," the press release said. "Now this product adds the EPA Heavy Duty Greenhouse Gas Certificate of Conformity, CARB Heavy Duty Greenhouse Gas Executive Order, and the CARB Zero Emissions Powertrain Executive Order to its list of advantages."

McNeilus Truck and Manufacturing Inc. builds North America’s first fully integrated, zero-emission electric refuse collection vehicle (eRCV), which incorporates technological advancements, driver comfort and safety. McNeilus won an amended $2 million property tax reduction arrangement with the Rutherford County Industrial Development Board on Wednesday.

The seven-year property tax abatement agreement won unanimous IDB support, including from Warren Russell. He was pleased to hear that McNeilus is providing jobs for welders, fabricators and other positions at a factory off Joe B. Jackson Parkway on the far southeast side of Murfreesboro.

"This is the type of jobs we need," said Russell, whose board in 2022 approved the previous $1.6 million tax break with McNeilus to gain 125 jobs and a capital investment of $136.2 million.

Warren Russell
Warren Russell

Tax incentive: Truck manufacturing firm gets tax break for Murfreesboro plant, 125 jobs and $136.2M investment

Jobs will pay over $53K per year

The jobs will pay an annual wage of $53,242, which is less than the county's average of $56,212, according to an IDB consultant report completed by Younger Associates.

McNeilus in the amended arrangement will be investing nearly $161.5 million overall in the operation. The capital investment combined with the jobs will generate an estimated $15.6 million in local taxes. So for every $1 of taxes abated, the agreement should provide an estimated $7.60 in local taxes, Younger Associates reported.

Most of tax abatement involves personal property taxes on equipment. McNeilus will be paying 90% of the real estate property taxes to the Rutherford County and Murfreesboro governments for seven years, said Patrick Cammack, a senior vice president of economic development for the Rutherford County Chamber of Commerce.

McNeilus Truck and Manufacturing Inc. builds North America’s first fully integrated, zero-emission electric refuse collection vehicle (eRCV), which incorporates technological advancements, driver comfort and safety. McNeilus won an amended $2 million property tax reduction arrangement with the Rutherford County Industrial Development Board on Wednesday.

McNeilus in the 2022 arrangement announced plans to build an 844,480-square-foot factory that's part of the Parkway Place development on 51 acres, IDB chairman Bill Jones said.

The factory is at 2120 Logistics Way and is behind the large Amazon fulfillment center on Joe B. Jackson Parkway.

The McNeilus Truck and Manufacturing factory is 844,480 square feet and sits at 2120 Logistics Way behind the Amazon Fulfillment Center on Joe B. Jackson Parkway off Interstate 24 in southeast Murfreesboro.
The McNeilus Truck and Manufacturing factory is 844,480 square feet and sits at 2120 Logistics Way behind the Amazon Fulfillment Center on Joe B. Jackson Parkway off Interstate 24 in southeast Murfreesboro.

McNeilus is investing $25.2 million to expand its Murfreesboro operation, according to a press release from the Tennessee Department of Economic and Community Development.

The state press release suggests McNeilus will employ more than 300 people in Murfreesboro.

Note: This story will be updated.

Reach reporter Scott Broden with news tips or questions by emailing him at sbroden@dnj.com. Follow him on Twitter @ScottBroden. To support his work with The Daily News Journal, sign up for a digital.

Tax abatement facts

  • Who's getting amended tax incentive: McNeilus Truck and Manufacturing, Inc., which is based in Minnesota and part of Wisconsin-based Oshkosh Corporation

  • Where does McNeilus operate in Tennessee: 2120 Logistics Way off Joe B. Jackson Parkway and Interstate 24 on southeast side of Murfreesboro, Tennessee

  • What is amended tax incentive: nearly $2.1 million property tax abatement over seven years with Murfreesboro and Rutherford County governments

  • Who approved tax deal: Rutherford County Industrial Development Board

  • Capital investment from McNeilus: nearly $161.5 million

  • How many jobs is company pledging in tax agreement: 225

  • What's average annual pay of jobs: $53,242

  • What's average annual pay of jobs in Rutherford County: $56,212

  • Estimated local taxes generated through seven-year agreement: $15.6 million

Source: Younger Associates report for Rutherford County Industrial Development Board

This article originally appeared on Murfreesboro Daily News Journal: Rutherford IDB approves $2M tax cut for McNeilus Truck, adds 100 jobs