Premier Packaging Seeks Tax Breaks to Build New Kentucky Facility

 

According to a report earlier this week by the Indianapolis Business Journal, Indianapolis, Ind., USA, a Louisville, Ky., USA, manufacturer of corrugated boxes and other packing supplies is seeking a tax abatement from the city to help it open a local plant and distribution center that would hire 60 workers over the next two years.

Premier Packaging, Louisville, Ky., USA, has already qualified for up to $365,000 in conditional tax credits from the state, according to the Indiana Economic Development Corp., after pledging to spend $6.75 million to purchase, renovate, and equip a 159,400-sq. ft. building in the Park 100 Business Park on the northwest side of Indianapolis.

Premier Packaging told the IEDC last month that it would hire 48 people by the end of 2016.

In its tax abatement request to the city, Premier Packaging said it has already acquired the building and plans to spend $4 million on new manufacturing, technology, and logistics equipment for the facility. The plant would employ 60 workers making an average wage of $25 per hour before the end of 2017, the company said.

The Department of Metropolitan Development staff is recommending that Premier Packaging receive a seven-year abatement on the $4 million investment that would save it an estimated $169,300, or 62%, on its personal property taxes over that period.

After the abatement period, the company would pay an estimated $31,456 annually in personal property taxes on the new equipment, the DMD said.

Founded in 1994, Premier Packaging operates 21 facilities and employs more than 300 associates across the nation.