Business

State incentives approved for expanding companies

The Kentucky Economic Development Finance Authority board approved tax incentives Thursday for companies, including Maker's Mark Distillery, F.B. Purnell Sausage and Hitachi, that are considering 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 board preliminary approvals, unless otherwise noted:

■ Maker's Mark Distillery in Loretto, $204,000 to build two new warehouses for to store and age bourbon. The company estimates that the expansion will cost $8.5 million. The tax incentive program does not require job creation.

■ F.B. Purnell Sausage in Simpsonville, $84,000 to expand refrigeration capabilities. The company estimates that the expansion will cost $2.8 million. The tax incentive program does not require job creation.

■ Hitachi Automotive Systems Americas in Harrodsburg, $49,800 to expand its plant to produce lithium-ion battery packs. The company estimates that the expansion will cost $12.5 million. The tax incentive program does not require job creation.

■ SMC in Nicholasville, $1.5 million to open a plant to manufacture circuit boards. The company estimates that the plant will cost $1.88 million. It is expected to add 94 jobs that pay an average hourly wage of $15, including benefits.

■ American Doors in Mount Sterling, $2 million to renovate a building to manufacture metal doors and door frames. The company estimates that the project will cost $27.5 million. It is expected to add 60 jobs that pay an average hourly wage of $14, including benefits.

■ Macro Plastics in Shelbyville, final approval for $1 million for a plant to manufacture and distribute plastic containers and other plastic industrial products. The company estimated previously that the project was to cost $6.8 million. It is expected to add 45 jobs within five years that pay an average hourly wage of $20.89, including benefits.

■ Roll Forming Corp. in Shelbyville, $400,000 to expand its metal products operation. The company estimates that the expansion will cost $6.3 million. It is expected to add 30 jobs that pay an average hourly wage of $25, including benefits. The company also was approved for $57,000 in incentives under a different program.

■ Creative Corrugated Co. in Shelbyville, $600,000 to open a plant to manufacture recyclable pallets. The company estimates that the plant will cost $2.25 million. It is expected to add 30 jobs that pay an average hourly wage of $14, including benefits.

■ Aichi Forge USA in Georgetown, $250,000 to add equipment to further expand into heavy truck and transmission applications. The company estimates that the expansion will cost $5.5 million. It is expected to add 26 jobs that pay an average hourly wage of $21, including benefits. The company also was approved for $60,000 in incentives under a different program.

■ The KEDFA board approved $500,000 in incentives for Green City Recovery in Scott County under the Incentives for Energy Independence Act. The company plans to collect landfill gas from the Waste Services of the Bluegrass's landfill in Scott County and convert it to electricity at a plant about 6 miles away. Toyota's plant in Georgetown has agreed to buy the electricity produced, according to state documents.

■ The KEDFA board approved a $75,000 forgivable loan to Boyle County company Ferm Solutions, which researches biofuels. The loan will be used to buy equipment for the expansion of its technology center. The company, which has seven employees, is required to add five more that pay at least $43,000 annually by the end of 2014.

■ The Yearling Fund II LP was approved for tax credits of as much as $6 million under the Kentucky Investment Fund Act. The tax credits are allocated to individual investors. The KEDFA board approved Yearling Management LLC, which includes Dale Boden, William Lomicka and Tyree Wilburn, as the manager of the new fund, which was formed to invest primarily in early stage businesses.

Scott Sloan | ssloan@herald-leader.com

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