FRANKFORT, Ky. (April 17, 2013) — Toyota received approval Wednesday for state tax incentives to back a $531 million expansion of its Georgetown, Ky., manufacturing operation that proposes creating 750 new full time jobs to add production of a new vehicle model at what already is its largest North American facility. The incentives are to help the Kentucky plant win production work for the new vehicle over Toyota’s other U.S. facilities.
The Kentucky Economic Development Finance Authority conducted a special meeting Wednesday with a one-item agenda to OK up to $146.5 million in tax incentives for Toyota over the next 10 years if the company fulfills yearly goals for investment and hiring.
The Japanese company now has 6,169 full-time Kentucky-resident jobs at Toyota Motor Manufacturing Kentucky in Scott County where it builds the Camry, Camry Hybrid, Avalon, Avalon Hybrid and Venza, as well as machining and assembling four-cylinder and V-6 engines, axles, and steering and engine components.
Tax incentive goals require maintaining a minimum of 570 additional full-time Kentucky-resident jobs for a total of 6,739 in each of the 10 years to receive reduced state and local tax bills.
TMMK is considering the addition of a new vehicle model to in the fall of 2015 at a production level of 50,000 units a year, according to KEDFA agenda documents. However, the Kentucky facility is in competition with other Toyota manufacturing locations for the opportunity to become the production site for the new model.
The proposed project includes expansion, modification and refurbishment of its 7.5 million s.f. plant in Georgetown. The potential $531.2 million investment includes $63.2 million in building expansion and improvements, $326 million in equipment and $142 million in other tooling, packaging and work.
Toyota began assembly operations in Scott County in 1988. The wholly owned facility on 1,300 acres of land near I-75 represents a $6 billion investment.
Terms of the incentives given preliminary approved Wednesday include potential full repayment of any transferred tax credits from previous state incentives if there is less than $100 million invested into the TMMK facility within three years from final approval. The thus far unclaimed balances of previous incentives include $9.6 million remaining from a 10-year package initiated in 2007, $18 million from a 10-year package initiated in 2006 and $25 million from a 10-year incentive package initiated in 2010.