Cabinet for Economic Development
GOVERNOR FLETCHER ANNOUNCES INCENTIVE PACKAGE APPROVED FOR FORD MOTOR COMPANY IN LOUISVILLE
FRANKFORT, KY – Governor Ernie Fletcher and Economic Development Cabinet Secretary John Hindman announced today the approval of tax incentives for Ford Motor Company under the Kentucky Jobs Retention Act (KJRA). The Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved the project for up to $66 million over a 10 year period at its meeting earlier today.
Approval of the KJRA incentives is intended to help support the retention of 5,117 jobs and a payroll of direct and indirect jobs of more than $4 billion in the state. As part of the company’s “Way Forward” plan, Ford is proposing to invest in its Kentucky Truck Plant to increase flexibility, efficiency and reliability at the facility.
“Today’s action by the KEDFA Board shows Kentucky’s commitment to keeping Ford Motor Company in Kentucky, as well as protecting its employees,” said Governor Fletcher. “Ford Motor Company is a driving force of our state’s economy and we intend to ensure its viability and continuity in Louisville.”
Ford’s proposed investment is estimated to total $105 million. It will include funds for equipment and facility upgrades, technology upgrades and the purchase of new machinery and equipment. It will also include engineering costs necessary to implement the modernization upgrades.
"Ford is facing unprecedented competitive challenges and this type of partnership support enhances our ability to work together closely to set the stage for additional opportunities in the future," said Curt Magleby, director of State and Local Government and Community Relations.
The Kentucky Jobs Retention Act is a new incentive program resulting from House Bill 536, which was adopted by the 2007 General Assembly and signed into law by Governor Fletcher on March 23. The program is designed to encourage existing automotive manufacturers to modernize their facilities and retain existing jobs.
“It is important that Kentucky remain competitive and prove its ability to adjust to a rapidly evolving business climate,” said Secretary Hindman. “This incentive package is a major step in securing the future of Ford Motor Company right here in Kentucky.”
Mayor Abramson applauded Governor Fletcher and Economic Development officials for working to provide Ford with these incentives.
“The Ford plants are major employers and important corporate citizens in Louisville — and these incentives will go far in keeping the automaker in our city,” said Louisville Mayor Jerry Abramson.
"The Ford Motor Company is a long-time employer and tremendous asset to our community," said Joe Reagan, president and CEO, Greater Louisville Inc. – The Metro Chamber of Commerce. "Building on our traditional strengths in the automotive industry is one part of our region's economic development strategy. We proudly support Ford as they address the challenges of this increasingly competitive global economy."
The Kentucky Economic Development Finance Authority, established within the Cabinet for Economic Development to encourage economic development, business expansion, and job creation, provides financial support through an array of financial assistance and tax credit programs. KEDFA approval is required for participation in the loan and tax incentive programs, except the Skills Training Investment credits, which are approved by the Bluegrass State Skills Corporation (BSSC).
# # #