Good news for General Motors and its Bowling Green, Kentucky assembly plant where the 2014 Chevrolet Corvette Stingray will be built starting later this year.
Last Thursday, the Kentucky Economic Development Finance Authority Board approved tax incentives for several expanding companies, including GM.
The decision by the board comes after GM had approved a $131.12 million expansion and refurbishing of the Corvette plant. The agreement will save the company $7.5 million in taxes, assuming GM winds up fulfilling the terms of the deal.
The incentives are offered to companies that commit to projects that will add jobs in Kentucky. In GM’s case, it’s estimated that the expansion currently underway will add 250 jobs that pay an average of $42 per hour, including benefits.
Other auto-related approvals by the KEDFA last week included:
Akebono Brake in Glasgow, final approval of $4 million to expand its brake-manufacturing operation;
Katayama America in Shelbyville, final approval of $440,000 to expand its plant where door sash assemblies and trim moldings for vehicles are made;
Angell-Demmel North America in Lebanon, $30,600 to expand its operations that produce aluminum trim for the automotive and appliance industries.
And in case you ever wondered if the companies do indeed have to live up to the deals, consider that the board last week approved a payback plan for Lexington’s Transposagen Biopharmaceuticals after the company created nine jobs instead of the agreed-upon 13 and at a lower average annual salary than the required $57,200. The company had borrowed $325,000 in December 2008, agreeing to the stipulations that had to be met by the end of 2012, and now will have to repay $39,523.26 for not living up to the deal completely.
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