From John Schaaf, Kentucky Legislative Ethics Commission Executive Director
In the recently completed fiscal year, Kentucky state government gave final approval to 334 companies to receive $173.6 million after the companies promised to locate or expand in the state.
In FY 2016-17, the Kentucky Economic Development Finance Authority (KEDFA) approved 49 of those companies to receive over $1 million in incentives, some by direct payment and some by allowing companies to retain tax money they would otherwise be required to pay into the State Treasury.
The fiscal year total is an increase from the $136 million in incentives which were approved for 298 companies in the previous fiscal year. The largest state incentive packages will go to the following companies in these counties:
Computershare, Inc. (Jefferson County) $13.2 million; Champion Petfoods USA (Logan County) $12 million; Aleris Rolled Products, Inc. (Hancock County) $11 million; Kindred Healthcare Operating, Inc. (Jefferson County) $11 million; Big Ass Solutions (Fayette County) $6.5 million; Amazon Fulfillment Services, Inc. (Boone County) $5.4 million; Thai Summit Kentucky Corp. (Nelson County) $5 million; Constellium-UACJ ABS LLC (Warren County) $4.5 million; Maker’s Mark Distillery (Marion County) $4.25 million; and Faurecia Automotive Seating LLC (Shelby County) $3 million.
THG International (Bullitt County) $2.6 million; Braidy Industries (Greenup County) $2.5 million; Diageo Americas Supply, Inc. (Shelby County) $2.5 million; GameStop, Inc. (Bullitt County) $2.5 million; INOAC Group North America LLC (Washington County) $2.5 million; International Crankshaft, Inc. (Scott County) $2.5 million; iwis Engine Systems (Calloway County) $2.5 million; LEDVANCE LLC (Woodford County) $2.5 million; Eby-Brown Co. (Bullitt County) $2.4 million; T.RAD North America (Christian County) $2.3 million; Retail Convergence.com (Bullitt County) $2.25 million; Specialty Foods Group (Daviess County) $2.25 million; Kellogg USA (Pike County) $2 million; and Sazerac Distillers (Nelson County) $2 million.
These incentive payments are from the state’s largest economic development programs, such as the Business Investment program (KBI) and the Enterprise Initiative Act (KEIA). The above totals don’t include amounts which will be paid by local governments to benefit the businesses, or payments or tax breaks from other state programs.
For example, Lakeshore Learning Co., which manufactures educational materials, is building a distribution center near Midway. KEDFA gave final approval to Lakeshore to receive $1.4 million from KEIA, preliminary approval to get $3.7 million from KBI, and approval for $1.35 million in Economic Development Bond funds to extend gas lines to the distribution center. KEDFA also approved a 100 percent reduction in the state ad valorem tax rate on Lakeshore’s building and equipment, which will be financed with industrial revenue bonds issued by the City of Midway. That tax reduction will be worth up to $50 million over 30 years.