At its monthly meeting last week, the Kentucky Economic Development Finance Authority board approved tax incentives for companies including Hitachi and J.M. Smucker that are making new investments in the state.
The approval of tax incentives outlines the state's commitment to a project should it occur in Kentucky.
In general, when a company accepts the tax incentive, it can keep that amount of money, which it would otherwise pay in taxes, assuming it fulfills the terms of the deal. Here are selected preliminary approvals from Thursday's meeting, unless otherwise noted:
■ J.M. Smucker in Scottsville, $3.5 million to expand bakery operations that make products including Uncrustables. The company estimates the expansion will cost $70 million. It is expected to add 80 jobs that pay an average hourly wage of $17, including benefits. The company also received preliminary approval for $1.92 million in additional incentives under a different program.
■ Anacomp in Somerset, $1.5 million to open a document conversion facility. The company estimates the new location will cost $2.4 million. It is expected to add 200 jobs that pay an average hourly wage of $11, including benefits.
■ Dixi Comkontec USA in Frankfort, $750,000 to open a facility to manufacture specialty equipment used in the creation of automotive parts. The company estimates the location will cost $2.3 million. It is expected to add 50 jobs that pay an average hourly wage of $22, including benefits.
■ MarkWest Energy Appalachia in Langley, $300,000 to expand its natural gas processing operations. The company estimates the expansion will cost $13.9 million. It is not required to create jobs under this tax incentive program.
■ Hoffman Enclosures in Montgomery County, final approval for $332,500 to consolidate Minnesota production of electrical control system enclosures into its facility here. The company estimates the expansion will cost $382,500. It is expected to add 60 jobs that pay an average hourly wage of up to $19.10, including benefits.
■ The board approved granting $500,000 in Economic Development Bond funds to the City of Berea for the benefit of Hitachi, which is acquiring a former Panasonic manufacturing plant near its current Berea facility to build electric drive motors for the next generation of electric and hybrid electric vehicles.
Hitachi will be required to create 130 full-time jobs, paying an average hourly wage of no less than $13.50 including benefits. If it doesn't, it will be required to repay part of the funds.
The project is estimated by the company to cost $74.5 million. The company was preliminarily approved this year for more than $4 million in tax incentives for the project.
■ The KEDFA board gave its final approval for the issuance of tax-exempt revenue bonds not to exceed $336 million on behalf of Catholic Health Initiatives for projects in cities including Lexington, Bardstown, London, Martin, Mount Sterling and Nicholasville.
■ Connected Patients LLC in Lexington was given an additional year to create jobs to fulfill the terms of a $100,000 forgivable loan approved in January 2010 by the KEDFA board. The loan was contingent on the company creating eight full-time jobs paying an average annual salary of $61,000 by the end of 2011.
The company has created only two jobs, as its "customers are hospitals that are facing tough times and trying to conserve capital," according to state documents.