The Board of Selectmen on Tuesday voted to accept a $2.5 million tax abatement agreement with T. Marzetti Company, which will help the company expand Chatham Village Croutons in Wareham.

The agreement gives the company a reduction in taxes over 20 years, saving the company $2,500 per year.

T. Marzetti representatives said that state and local tax incentives were a big factor for the company in deciding whether to expand in Wareham at a similar facility currently operating in the Midwest.

The agreement was approved by Town Meeting in October. With Town Meeting and Selectmen approval, the company will be able to go after state tax credits for the project.

T. Marzetti plans to invest approximately $2.5 million in building improvements at its existing 15 Kendrick Road facility and at a new facility at 20 Kendrick Road. The company manufactures and packages its crouton products at the plant.

Though $2.5 million is a large sum of money, the company is just improving the inside of the buildings (walls, ceilings, and floors) so the property value will only increase by approximately $5,000. T. Marzetti requested a tax abatement on half of the projected increase in assessed value.

After the expansion, T. Marzetti plans to close a facility in New Bedford, transfer 10 jobs to Wareham, as well as add 25 new jobs in Wareham.

Selectman Ellen Begley expressed concern on Tuesday that the language in the Town Meeting article was not strong enough in terms of bringing jobs to Wareham. The language doesn’t mandate that the company do so, it says they must make a “reasonable effort” to do so.

“I think we could have done better for the town,” said Begley. Begley argued that Wareham could have bargained with the company, rather than accepting the agreement as it was given to the town by the company.

Noting that it’s the first time Wareham has had this kind of agreement with a company in more than a decade, Selectman Peter Teitelbaum said: “Unfortunately, we learn from our mistakes.”