JEFFERSONTOWN, Ky. (Dec. 19, 2017) — In 2017, seven companies with new or expanded locations in the City of Jeffersontown qualified for and were accepted into the Jeffersontown Occupation Business Savings (JOBS) Program, which ultimately will boost employment in the eastern Jefferson County community by 651 and eventually generate a total annual payroll of more than $40 million.
The JOBS Program is a business-development tool that provides an inducement equivalent to 50 percent of the new occupational taxes generated over a five-year period. It was created by Jeffersontown officials to help retain and attract businesses to the community — which already is the second-largest city in Kentucky by population during the typical business day when employees report to work.
“Increasing employment is an important barometer that signals the good health of a community, and our innovative JOBS program is helping us achieve that goal,” said Jeffersontown Mayor Bill Dieruf. “Employment in Jeffersontown has grown even more as the economy continues to get stronger, but we think it’s important to point out how the JOBS Program not only attracts jobs but retains them as well.”
In addition to the 651 new employment opportunities for 2017, there are also 915 jobs retained by companies that might have relocated outside Jeffersontown if not for the JOBS Program and the incentive provided. The total accumulative incentives provided to the seven companies over five years is anticipated to be $834,440. Companies do not receive their inducement until they meet the annual goals of their five-year plans. Meanwhile, the 2017 JOBS Program companies are investing a total of almost $32 million in their Jeffersontown operations.
“To have merit, tax incentives need to be structured so there is a long-term benefit for the community,” Dieruf said. “Keeping businesses in our city and enticing more to choose Jeffersontown for their home will pay off as those companies thrive and eventually hire more employees — which in the long haul will grow our tax base. Simply put, our JOBS program works.”
The 19 JOBS Program participants to date have invested or are in the processing of investing almost $66 million in their Jeffersontown operations, and they will have retained/attracted a total of 3,025 jobs with projected total annual payroll of more than $198 million following program participation. The average pay per new job is a little more than $60,000, which is well above the salary level required to participate.
“These numbers speak to the effectiveness of the JOBS Program,” said Mike Kmetz, Director of the Jeffersontown Economic Development Authority. “We believe word of an effective incentive of this kind will spread and continue to boost our business community growth. Jeffersontown has a lot to offer employers and their employees. The JOBS Program is one significant benefit among many reasons for businesses to locate in Jeffersontown.”