Indiana gives $7 million in tax breaks to Carrier in exchange for keeping jobs in the U.S.

The heating and air conditioning company will invest about $16 million to keep its operations in the state, including a furnace plant in Indianapolis that it had previously planned to close and shift the work to Mexico, the people said.

Carrier has previously said it expected to save about $65 million a year by shutting the plant and moving its operations to Monterrey…

The company still plans to move 600 jobs from the Carrier plant to Mexico. It also will proceed with plans to close a second plant in Huntington, Ind., that makes electronic controls, moving 700 other jobs to Mexico.

Mr. Trump has played up the partial rescue as a sign he can deliver on campaign promises. Through the presidential primary and general election, the Republican businessman had made an example of Carrier, at one point threatening to put a 35% tariff on Carrier imports unless it reversed its decision to move the jobs to Mexico.