FRANKFORT, Ky. – Truck Equipment & Body Co. of Kentucky Inc., or TEBCO, in early July began a $2 million project renovating and equipping a 40,000-square-foot facility in Stanton to establish a 43-job custom dump truck body and truck equipment manufacturing operation.

What You Need To Know

  • Approved agreements offer tax breaks

  • Job creation, expansion and relocation are key components

  • Variety of industries have used program

  • More recent expansion approved benefits Eastern Kentucky

TEBCO is the more recent Kentucky business to expand under an incentive program from the Kentucky Business Investment program through the Kentucky Economic Development Finance Authority, or KEDFA, that offers tax breaks based on expansion investment, job creation and retention, the rate of hourly pay for employees and more. 

KEDFA, established within the Kentucky Cabinet for Economic Development to encourage economic development, business expansion and job creation, provides financial support through an array of financial assistance and tax credit programs with the goal of achieving long-term economic growth and employment opportunities. “Ensuring Kentuckians have quality job opportunities is perhaps more important than ever, and we at the state level are doing all we can to create and strengthen new and existing business relationships to make that possible,” said Kentucky Gov. Andy Beshear. “TEBCO of Kentucky has been a reliable employer in the commonwealth for nearly 30 years, and its continued growth is a clear boost to the Eastern Kentucky region. Our thanks go to the company for its commitment to the state and its dedicated workforce.”

TEBCO’s 15-year performance-based incentive agreement can provide up to $750,000 in tax incentives based on the company’s investment of $2 million and annual targets of creating and maintaining 43 Kentucky-resident, full-time jobs across 15 years and paying an average hourly wage of $17, including benefits, across those jobs. By meeting its annual targets over the agreement term, TEBCO can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against either its income tax liability, wage assessments or both.

TEBCO can also receive resources from the Kentucky Skills Network, such as no-cost recruitment and job placement services, reduced-cost customized training and job training incentives.

Richmond-based TEBCO of Kentucky, established in 1991, currently employs 50 people and also operates a location in Winchester. 

Gov. Beshear announced this past June that Porter Road Butcher Meat Co. LLC, a meat processor based in Princeton, plans to relocate and expand within Caldwell County with an investment of more than $1.5 million expected to create 83 full-time jobs through the same program. 

The Porter Road Butcher Meat Co. 10-year performance-based agreement can provide up to $750,000 in tax incentives based on the company’s investment of $1.51 million and annual targets of creating and maintaining of 83 Kentucky-resident, full-time jobs across 10 years paying an average hourly wage of $19.46, including benefits across those jobs. Porter Road can also receive resources from the Kentucky Skills Network.

Hemp processor Shyne Labs committed under the incentive program to creating 60 full-time jobs for Kentuckians in the coming months with a new $9 million facility in Simpson County. Shyne Labs’ 5-year performance-based agreement can provide up to $250,000 in tax incentives based on the company’s eligible investment of $3.5 million and creating and maintaining 30 Kentucky-resident, full-time jobs across five years paying an average hourly wage of $27, including benefits.

Feralloy Corp., a Chicago-based steel processing company, plans to locate a 30-job, $17.5 million facility on Nucor Steel Gallatin’s campus near Ghent in Carroll County to level and cut steel for customers throughout the Ohio Valley region.

KEDFA in June approved Feralloy for up to $90,000 in tax incentives through the Kentucky Enterprise Initiative Act, or KEIA, which allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.

Feralloy may also receive resources from the Kentucky Skills Network through the agreement.

Rajant Corp., the provider of Kinetic Mesh® wireless networks, plans a $2 million relocation and expansion project in Rowan County expected to create 26 additional full-time jobs in the coming years through a 15-year performance-based incentive agreement approved by KEDFA through the Kentucky Business Investment program. The agreement can provide up to $300,000 in tax incentives based on the company’s investment of $2 million and the creation and maintenance of 26 Kentucky-resident, full-time jobs across 15 years paying an average hourly wage of $25, including benefits.

By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates and may claim eligible incentives against either its income tax liability, wage assessments or both.

KEDFA also approved Rajant for up to $50,000 in tax incentives through KEIA, which allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.

Gov. Beshear announced this past June that PRCO America Inc., a manufacturer of specialty refractory brick for the steel industry, plans to open its first U.S. production facility next year in Graves County, a nearly $5.5 million investment expected to create up to 32 full-time jobs.

KEDFA in April approved the preliminarily 15-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $550,000 in tax incentives based on the company’s investment of $5.49 million and the creation and maintenance of 32 Kentucky-resident, full-time jobs across 15 years paying an average hourly wage of $24.50, including benefits. By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.

A global outsourcer of aircraft and aviation operating services is moving its Kentucky operations center from Florence to Erlanger by 2021. 

Atlas Air Worldwide Holdings Inc. announced plans earlier this year to move closer to the Cincinnati/Northern Kentucky International Airport (CVG) in 2021 with a $34.1 million investment to improve the support of its customers at CVG.

Globally, Atlas Air employs more than 3,000 people to outsource Boeing 747, 777, 767, 757, and 737 domestic, regional and international cargo and passenger aircraft. The company’s Florence location currently employs 318 people, 182 of whom are Kentuckians. In addition to the relocation of these employees, the new facility will create 593 full-time Kentucky jobs.

The relocation comes with $15 million in tax incentives preliminarily approved by KEDFA. These incentives will allow the company to retain a portion of its tax revenue if it hits job and investment targets to encourage investment and job growth in the community.

KEDFA approval is required for participation in the loan and tax incentive programs, except the Skills Training Investment credits, which are approved by the Bluegrass State Skills Corporation. 

Businesses that receive agreements through KEDFA qualify to receive resources from the Kentucky Skills Network, such as no-cost recruitment and job placement services, reduced-cost customized training and job training incentives. 

 

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