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Bardstown Bourbon Plans Nelson County, Kentucky, Distillery Expansion

Bardstown Bourbon Co., one of America’s largest new distilleries, plans to expand its facility in Nelson County, Kentucky. The $28.7 million project is expected to create 29 jobs.

The expansion will include over 15,000 square feet to the existing distillery, bringing the total square-footage to over 390,000. The operation will add space to one of the fermenter buildings, 16 new fermenters, a new distillation column and necessary equipment to accompany it, a hot water processing tank, grain handling equipment, chemical treatments and glass towers to hold the still that will be seen from the parkway. The expansion will increase the operation’s annual capacity by approximately 55,000 barrels.

“The commonwealth’s investment in Bardstown Bourbon Co. will help us increase our distilling capacity by 50% by 2024, creating a number of new high-paying jobs and helping small Kentucky-based bourbon brands grow,” said Mark Erwin, the company’s president and CEO. “We are truly grateful for the support of these incentives in helping solidify Bardstown as the ‘Bourbon Capital of the World.”

To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) on Thursday preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $750,000 in tax incentives based on the company’s investment of $28.7 million and annual targets of creation and maintenance of 29 Kentucky-resident, full-time jobs across 10 years and paying an average hourly wage of $38.08 including benefits across those jobs.

Additionally, KEDFA approved Bardstown Bourbon Co. for up to $250,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing. By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.

In addition, Bardstown Bourbon Co. can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.

“Kentucky is continuing its unbelievable economic momentum because of businesses constantly looking to expand and improve their services here in the commonwealth,” Governor Andy Beshear said. “I appreciate Bardstown Bourbon Co.’s continued commitment to the state, its workforce and the bourbon and spirits industry. I greatly look forward to seeing the company’s future success.”

The Bardstown Bourbon Co. started commercial production in September 2016 and produces whiskey, bourbon and rye for its own brands as well as for their Collaborative Distilling Program partners. Its campus is a first-of-its-kind Napa Valley-style building featuring a state-of-the-art whiskey distillery that has been expanded to quadruple production since its opening. Currently, Bardstown Bourbon employs over 150 people.

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