The Kentucky Economic Development Finance Authority board approved tax incentives Thursday for companies, including Central Motor Wheel of America, 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:
■ Central Motor Wheel of America in Paris, $1 million to purchase equipment to produce more aluminum wheels. The company estimates the project will cost $3.39 million. The tax incentive program does not require job creation but does mandate that the company maintain 90 percent of the 405 existing jobs on site.
■ SIS Holding Co. in Lexington, final approval of $450,000 to expand a data center and technology consulting services. The company estimated the expansion would cost $5.5 million. It was expected to add 15 jobs that pay an average hourly wage of $45, including benefits.
■ Holley Performance Products in Bowling Green, $3 million to expand its facility that produces automotive parts. The company estimates the expansion will cost $7.78 million. It is expected to add 136 jobs that pay an average hourly wage of $19.48, including benefits. The company also was approved for $120,000 in incentives under a different program.
■ Superior Vanceburg Composites in Vanceburg, $650,000 to expand its facility to produce items used in HVAC filtration. The company estimates the expansion will cost $1.7 million. It is expected to add 27 jobs that pay an average hourly wage of $14, including benefits.
■ Venture Industries in Junction City, $300,000 to build a facility to manufacture plastics and other items for the automotive industry. The company estimates the new location will cost $450,000. It is expected to add 12 jobs that pay an average hourly wage of $15, including benefits.
■ The KEDFA board approved a delay in requiring a Georgetown company to repay part of a forgivable loan. Corevalus Systems, which developed a computer music management system that displays sheet music, was approved in December 2007 for a forgivable loan of up to $300,000.
The company, which had seven employees at the time, was to create 18 more jobs by the end of 2011 and then maintain them for three additional years. However, at the end of 2011, the company had only two employees.
For each of the four compliance deadlines that the company fails to meet the jobs requirement, it has to repay $75,000 of the loan.
The board approved an extension to Aug. 15 for the company to either repay $75,000 or put together a payment plan. The company has told state officials it will launch a new product in early 2012 and anticipates higher sales and more jobs.