Company gets preliminary approval for state tax incentives
By Lorie Hailey
FRANKFORT, Ky. (May 30, 2013) — Maker’s Mark is investing $8.23 million in its Loretto, Ky., distillery to expand its existing operations and extend its bourbon supply.
Because production has increased nearly 10 percent each year over the past two decades and sales of the high-end bourbon are expected to grow significantly, the company plans to introduce a new process that will extract additional gallons of Maker’s Mark.
In its application for Kentucky Enterprise Initiative Act (KEIA) tax incentives administered through the Kentucky Economic Finance Development Authority (KEDFA), Maker’s Mark said it will construct a new facility to house a state-of-the-art barrel rinse process, as well as office space, restrooms and a break area. The company also plans to construct a 50,000-barrel warehouse.
KEDFA on Thursday preliminarily approved the distillery for $100,000 in KEIA incentives, which are for granted to new or expanded service or technology, manufacturing or tourism attraction projects in Kentucky. KEIA provides a refund of Kentucky sales and use tax paid by approved companies for building and construction materials permanently incorporated as an improvement to real property. It also is available for Kentucky sales and use tax refunds for eligible equipment used for research and development and data processing equipment.
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