Business

Tax incentives approved for expanding companies in Kentucky

A press conference welcomed Bingham McCutchen law firm at Lexington City Hall  lobby in Lexington, Ky., on Sept. 20, 2012. Photo by Pablo Alcala | Staff
A press conference welcomed Bingham McCutchen law firm at Lexington City Hall lobby in Lexington, Ky., on Sept. 20, 2012. Photo by Pablo Alcala | Staff Lexington Herald-Leader

The Kentucky Economic Development Finance Authority board approved tax incentives for companies, including Webasto Roofing Systems and Quad/Graphics, 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:

■ Bingham McCutchen LLP in Lexington, $200,000 for its previously announced plan to open an operations center in the city. The company estimates the new location will cost $22.6 million. It is expected to add 250 jobs that pay an average hourly wage of $37, including benefits. The KEDFA board previously gave preliminary approval for $6.5 million in tax incentives for the company under a different state program.

■ Webasto Roofing Systems in Lexington, $1.2 million to improve its sun roof production facility. The company estimates the expansion will cost $10 million. It is expected to add 65 jobs that pay an average hourly wage of $24, including benefits.

■ Quad/Graphics in Versailles, $1 million to install new equipment in the former World Color Press plant to increase book printing capacity. The company estimates the expansion will cost $15.1 million. It is expected to add 74 jobs that pay an average hourly wage of $18.34, including benefits.

■ STEMCO LP in Berea, $700,000 to expand its manufacturing facility that produces light-weight brake drums for commercial trucks and trailers. The expansion would create a distribution center for all STEMCO aftermarket products. The company estimates the expansion will cost $1.89 million. It is expected to add 30 jobs that pay an average hourly wage of $25, including benefits. The company was also given preliminary approval for an additional $30,000 in incentives under a different state program.

■ Bando USA in Bowling Green, final approval for $475,000 to expand its facility that produces automotive belts. The company estimated the expansion would cost $7.08 million. It was expected to add 15 jobs that pay an average hourly wage of $22.04, including benefits.

■ Hendrickson USA in Somerset, final approval of $3.2 million to expand its facility that manufactures trailer suspension systems for heavy-duty vehicles. The company estimated the expansion would cost $7.94 million. It was expected to add 160 jobs that pay an average hourly wage of $14.38, including benefits.

■ Curtis-Maruyasu America in Lebanon, final OK of $1 million to expand its facility focused on motor vehicle fuel systems and parts. The expansion would cost $10.77 million. The tax incentive program did not require job creation.

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