Hostess Brands plans to use the tax abatement as a part of its $10 million improvement plan for a bakery in Indianapolis.
Hostess Brands announced this week it plans to open a bakery in Indianapolis and union workers hope that means they will get their jobs back.
Five former Hostess employees, who now work at another bakery and live in a camper 172 miles from home, say they want their jobs back.
Hostess bread brands were auctioned off on Wednesday as a part of the company's liquidation of assets.
The Trade Adjustment Assistance program is made available to workers who are displaced due to foreign imports or shifts in production out of the country.
WFIU/WTIU reviews the top 10 stories of 2012, including election upsets and a record-breaking drought.
Hostess employed more than 850 workers in Indiana and more than 18,000 nationwide.
An Indiana University professor says mediations are usually successful, but labor disputes are the most difficult to resolve.
Hostess Brands announced Friday it is going out of business after strikers did not return to work Thursday.
Hostess said it would take steps to liquidate the company if strikers did not return to work Thursday by 5 p.m.