April 23, 2014

Kestrel secures tax credits

Wisconsin Governor Scott Walker has announced that tax incentives worth $30 million have been allocated to an aircraft builder, which is expected to create 600 new jobs in northwestern Wisconsin. It’s the latest in a host of state and local incentives aimed at securing the jobs in economically challenged Douglas County.

The Wisconsin Housing and Economic Development Authority and Wisconsin Community Development Legacy Fund have completed the $30 million allocation of federal New Markets Tax Credits to Kestrel Aircraft Corporation, which is developing a single engine turboprop aircraft for production. Kestrel is moving operations to Superior from neighboring Duluth, and Brunswick, Maine.

Kestrel will receive $7.5 million dollars out of the $30 million in tax credits, towards developing the company. WHEDA’s New Markets Tax Credit program promotes economic development in low-income communities. WHEDA is a part of the nonprofit WCDLF that is responsible for allocating federal NMTCs in Wisconsin. Kestrel qualifies for the credits as an eligible business seeking to make an investment in a federally designated qualified low-income area.

The Wisconsin Economic Development Corporation has created an Enterprise Zone in Superior to provide $18 million in tax credits, and has provided a $2 million loan to the company. The city of Superior has provided a $2.4 million loan in addition to providing two parcels of land for development, and $1.125 million in tax incremental financing (TIF). Douglas County has provided $800,000 in loans.