GE Giving Back $87 Million To State, Scaling Back Bay State Plans

BOSTON, MA -- General Electric will sell property it had purchased in Fort Point for its headquarters and reimburse the state for the $87 million tax incentive pacge Massachusetts offered the company in 2016. GE said it was scaling back its plans for locating in Massachusetts and will fall far short of creating the 800 jobs it promised.

GE still plans to move into two buildings in Necco Court following renovations. About 250 people will work at Necco Court, slightly more than the company now employs in office space it leases nearby. But GE confirmed what had been assumed for several months: that the struggling company will not move forward to build a 12-story building that would have served as its global headquarters.

Separately, GE will work with the city of Boston to scrap a tax incentive plan that could have been worth as much as $25 million, according to the Boston Globe, which first reported this story. Since Larry Culp was named chief executive in October, the company has moved to dramatically cut costs.

The state package had been for up to $120 million, but GE stopped submitting for reimbursements several months ago. That gave rise to fears that the company was scaling back its plans. MassDevelopment, a quasi-public agency that owns part of the property, will work together to sell the Fort Point property.

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Former General Electric CEO Jeff Immelt speaks during a groundbreaking ceremony at the site of GE's new headquarters as Massachusetts Gov. Charlie Baker, left, and Boston Mayor Marty Walsh look on, Monday, May 8, 2017, in Boston. (AP Photo/Michael Dwyer)

Dave Copeland can be reached at dave.copeland@patch.com or by calling 617-433-7851. Follow him on Twitter (@CopeWrites) and Facebook (/copewrites).