GLASGOW — The Kentucky Economic Development Finance Authority board Thursday approved tax incentives for companies that are considering new investments in the state.
The finance authority board gave preliminary approval for tax credits to Omnicare in Barren County. The company provides pharmacy-related services to long-term care facilities. Omnicare is considering constructing an 83,000-square-foot distribution and repackaging facility in Glasgow. It already has a distribution facility there.
Omnicare has 86 employees but plans to add 30 to 40 more people, with hourly wages of $18 an hour, including benefits. Withholding and income tax credits would total about $300,000 over 10 years if the expansion is completed and employee levels maintained.
Up to $7.5 million of the company’s possible $15.7 million investment would qualify it for $300,000 in sales tax credits.
In general, when a company accepts the tax incentive, it may keep that amount of money, which it would otherwise pay in taxes, assuming it fulfills the terms of the deal.