Bakery Company to Receive Up to USD21m in State Income Tax Credits

Kwik Trip Inc. could receive up to USD21m in state income tax credits, according to an announcement by the Wisconsin Economic Development Corp. (WEDC), contingent upon whether its USD300m expansion creates more than 300 jobs in the La Crosse, Wisconsin, area during the next five years.

WEDC authorized the La Crosse-based company to receive the credits depending upon the number of jobs created, level of capital investment and amount it spends on equipment, goods and services from Wisconsin companies through 2022.

The tax credits are tied to Kwik Trip’s expansion in the industrial park on La Crosse’s North Side, where it is building a USD42m bread and bun facility with USD71m in state-of-the-art equipment. The new facility, which is expected to be finished in late 2018, will allow expansion of bread and bun production, and for increased sweet goods production in the existing bakery.

The project also includes expansions and improvements to the family-owned company’s dairy manufacturing facility, kitchen operations and transportation fleet, directly creating more than 300 jobs in the La Crosse area.

“The multimillion-dollar capital expenditures in Kwik Trip’s bakery, dairy, kitchen and transportation facilities will generate a significant return on investment for the state of Wisconsin and the city of La Crosse in the form of new and expanded tax base, job opportunities for our co-workers, construction contractors, subcontractors and suppliers,” said John McHugh, director of corporate communications for Kwik Trip, according to lacrossetribune.com.

“This will result in the purchase of additional fleet vehicles and the construction of more efficient production plants that will create higher capacity, productivity and cost savings which will allow Kwik Trip to better accommodate the needs of our guests in the 621 stores and numerous communities we currently serve,” he said.

An economic modeling study projects the Kwik Trip expansion will indirectly generate 235 jobs in the region in addition to the 300 directly created. According to WEDC, the direct and indirect jobs could generate up to USD1.1m annually in additional state income tax revenue.

Photo sourceL wisconsinrapidstribune.com