The Utah Governor’s Office of Economic Opportunity (Go Utah) is pleased to announce that Kentuckiana Curb Company, Inc. (KCC) will expand in Tooele, Utah, bringing up to 120 new high-paying jobs in the next 12 years.
“This expansion will allow KCC to establish a West Coast presence for manufacturing,” said Dan Hemmert, the Office of Economic Opportunity’s executive director. “The company will be a great addition to Utah’s manufacturing industry, and we’re excited for the number of jobs they’ll bring to Tooele.”
KCC is a 40-year-old employee-owned company dedicated to providing complete design, manufacturing, installation, and service for commercial and residential heating, ventilation, and air conditioning (HVAC).
“We’re very excited to further our expansion efforts in Utah,” said Anthony Balbach, KCC chief financial officer. “By expanding our presence in Utah, we hope to establish a long-standing foothold in the Western United States market and further our lineup of healthy building initiative HVAC products and Roof Curbs. As a 100% employee-owned company, we also look forward to welcoming new ‘employee owners’ and continuing our maturation as a premier technological and exceptional quality manufacturer.”
KCC may receive up to 25% of the additional state taxes it will pay over the 12-year life of the agreement in the form of a Utah Legislature-authorized Rural Economic Development Tax Increment Finance (REDTIF) tax credit. Each year that KCC meets the criteria in its contract with the state, it will qualify for a portion of the total tax credit.
“Tooele City did a tremendous job in supporting this long-standing corporate partner as the company increased its investment in Tooele. The city helped them identify suitable real estate, assisted in a re-zone of the property, and is funding electrical infrastructure to the site,” said Theresa A. Foxley, president and CEO of the Economic Development Corporation of Utah. “KCC’s confidence in Tooele City as a partner moving forward will pay dividends as they expand in the West.”
“Tooele City is thrilled to welcome the expansion of KCC to our community. KCC is an employee stock ownership plan (ESOP) company. They truly invest in their workforce, not only in high wages but by granting their employees joint ownership in the company,” said Jared Stewart, economic development coordinator at Tooele City. “KCC’s commitment to their employees and low water use reflect the values of Tooele City residents. They will be successful in our community, and we look forward to further collaboration as they expand.”
State of Utah Tax Credit Projections by the Numbers
|Capital investment:||$42 million|
|Projected new state tax revenue:||$2,994,450|
|New state tax REDTIF:||25%|
About Rural Utah Corporate Incentives
The Utah Legislature has authorized economic development incentives in the form of post-performance tax credits to promote rural businesses development. The rural incentive program is called Rural Economic Development Tax Increment Finance (REDTIF). Eligible companies work with the Utah Governor’s Office of Economic Opportunity to outline specific performance criteria, including capital investment and new high-paying jobs. Once the office confirms those criteria have been met, according to statute (U.C.A. 63N-2-104(c)(ii)), companies can receive a refund of up to 50% of the new state taxes they paid for up to 20 years. The contract with the state is post-performance. Utah does not provide up-front REDTIF cash incentives. The state offers a state tax credit only if the company meets its obligations.