Kentucky Lures Environmentally Friendly
Companies
In honor of Earth Day (April 22), it seemed appropriate to
highlight one of Kentucky's newest tax incentive programs, the Kentucky
Environmental Stewardship Act (KESA), created as part of Governor Fletcher's
2005 tax modernization plan to increase the location and expansion of
businesses producing environmentally friendly products.
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KESA, which is available to any business entity that manufactures a unique
product that has a substantial positive impact on the environment, was an
important factor in the decision by Toyota last year to begin hybrid production
of its best-selling Toyota Camry at its Georgetown facility.
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"Toyota had already developed a strong affection for Kentucky
based on the success we'd had with the assembly plant in Georgetown, and with
the headquarters and the parts center in Northern Kentucky as well. Then
we started looking for a place to begin production of our hybrid Camry, and the
governor's tax-modernization bill came along just in time. Choosing
Kentucky again was an easy decision," said Jim Wiseman, Vice President for
Corporate Affairs, Toyota Motor Manufacturing North America.
A project must have at least $5 million in eligible costs to
participate in the program. Approved companies can potentially recover up to 25
percent of the project's fixed asset cost and 100 percent of employee skills
training through the KESA tax incentives. A KESA approved company is also
eligible to receive a 100 percent credit against the Kentucky tax liability
generated by the project, to be recovered over a ten-year period or until the
authorized incentive has been realized.
"Our hope is that the Kentucky Environmental Stewardship Act
will help attract new industries and technologies to Kentucky that will not
only create new jobs and investment, but will be good for the environment as
well," said Secretary Gene Strong. "I think this is one of the most
innovative incentive programs around and has already benefited the Commonwealth
by bringing the Camry hybrid production to Kentucky."
For more information about the Kentucky Environmental
Stewardship Act, visit http://www.thinkkentucky.com/kyedc/pdfs/KESA_FACT_SHEET_2005_v11.pdf
or call 800-626-2930 today.
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