Harley-Davidson
Inc. has informed the Wisconsin Department of Commerce that it will not
pursue Enterprise Zone tax credits, according to a recent Business Journal report.

The
agreement was linked to Wisconsin-based Harley-Davidson’s decision in
September to keep production operations in the state following the
ratification of new labor agreements. The $25 million in tax credits
could have been earned over nine years.

A company spokesman
said the announcement doesn’t affect its decision to keep motorcycle
production in Wisconsin. Harley said that it anticipates a reduction in
the size of its Wisconsin production work force upon implementation of
the new labor agreements in 2012. Although the work force reduction
estimates provided at the time of contract ratification have not
changed, the anticipated employment level may not meet the technical
requirements of the Wisconsin statute for job retention or growth,
according to the report.

Harley’s concern over the application
of statutory requirements with its anticipated reduction in production
operations emerged in the course of finalizing details related to the
Enterprise Zone tax credits agreement, according to Harley-Davidson
management.