Business

State approves tax incentives for expanding companies

The Kentucky Economic Development Finance Authority board approved tax incentives for companies considering new investments in the state at its monthly meeting Thursday. 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 board preliminary approvals, unless otherwise noted:

■ Montebello Packaging in Lebanon, $1 million to expand space and install new equipment for its various products, which include collapsible aluminum and laminate tubes. The company estimates that the expansion would cost $24.2 million. It is expected to add 26 jobs that pay an average hourly wage of $20, including benefits. The company was also approved for an additional $100,000 in tax incentives under a different program.

■ Hitachi Automotive Systems Americas in Berea, $4 million to locate a plant to build electric drive motors for vehicles. The company estimates that the new location would cost $74.51 million. It is expected to add 130 jobs that pay an average hourly wage of $13.50, including benefits. The company was also approved for an additional $100,680 in tax incentives under a different program.

■ Neogen in Lexington, $2 million to expand its operations of manufacturing and distributing animal health care products. The company estimates that the expansion would cost $5.66 million. It is expected to add 75 jobs that pay an average hourly wage of $20, including benefits.

■ Creative Packaging in Shelbyville, $500,000 to double the size of its 100,000-square-foot facility. The company estimates that the expansion would cost $6.93 million. It is expected to add 25 jobs that pay an average hourly wage of $14, including benefits.

Scott Sloan

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