  We study category $\mathcal{O}$ for Takiff Lie algebras $\mathfrak{g} \otimes
\mathbb{C}[\epsilon]/(\epsilon^2)$ where $\mathfrak{g}$ is the Lie algebra of a
reductive algebraic group over $\mathbb{C}$. We decompose this category as a
direct sum of certain subcategories and use an analogue of parabolic induction
functors and twisting functors for BGG category $\mathcal{O}$ to prove
equivalences between these subcategories. We then use these equivalences to
compute the composition multiplicities of the simple modules in the Verma
modules in terms of composition multiplicities in the BGG category
$\mathcal{O}$ for reductive subalgebras of $\mathfrak{g}$. We conclude that the
composition multiplicities are given in terms of the Kazhdan-Lusztig
polynomials.
