Illinois economic development officials recently announced a more than $560,000 incentives package for Fabritech Inc., an aerospace manufacturing and maintenance, repair and overhaul business that specializes in rotor-wing aircraft, to help expand its existing operations at the St. Louis Regional Airport in Bethalto.

The company, which is making an almost $1.7 million investment, will create 26 new full-time jobs within two years and retain 46 jobs.

Officials also announced the certification of a boundary expansion for the Riverbend Enterprise Zone to include this business expansion, which will lend critical income and job creation tax credits. This support comes as a part of Opportunity Returns, the Governor’s comprehensive economic development strategy to continue creating more jobs and keep expanding the economy in Southwest Illinois.

Fabritech, Inc. was incorporated in 1992 and currently operates a 25,000 square foot facility at the St. Louis Regional Airport. Fabritech’s aircraft experience is extensive, with its personnel experience totaling more than 330 years.

Major customers include the U.S. Army Aviation & Missile Command, the Defense Logistics Agency and Science and Engineering Services, Inc. To accommodate its growing manufacturing business, Fabritech will double the size of its existing facility to provide additional industrial and corporate office space. The company is investing almost $1.7 million towards the expansion, which includes refurbishing and remodeling the existing facility.

The expansion is expected to be complete by the end of 2008.

“We are strategically located in the St. Louis Regional Airport and look forward to growing our workforce and expanding our base here in Illinois,” said Steven A. McCunney, president of Fabritech. “We are grateful to the state of Illinois and Gov. Blagojevich for providing us with the tools and support behind this expansion.”

The Illinois Department of Commerce and Economic Opportunity is administering the business investment package. It includes Economic Development for a Growing Economy corporate income tax credits over the next ten years based on job creation and retention; Employer Training Investment Program job training funds that will help enhance the skills of its workforce; and additional financial benefits, such as sales tax exemptions and tax credits for job creation, resulting from the company’s location within the expanded Enterprise Zone.

The Riverbend Enterprise Zone will extend its benefits to include a total of four acres, which will incorporate the Fabritech facility and its planned expansion. Chief benefits of an enterprise zone include sales tax exemptions and tax credits for job creation.

A 6.25 percent state sales tax exemption is permitted on building materials to be used in an enterprise zone, while the Enterprise Zone Jobs Tax Credit allows a business a $500 credit on Illinois income taxes for each job created in the zone for which a certified eligible worker is hired.

The Enterprise Zone Investment Tax Credit is a state investment tax credit of .5 percent for investments in qualified property in a zone, which includes machinery, equipment and buildings. An additional local benefit of the enterprise zone is the property tax abatements from the taxing districts.

A local enterprise zone may apply to the Illinois Department of Commerce and Economic Opportunity (DCEO) for boundary expansion if the proposed area to be added meets at least one of the tests for poverty, low income, unemployment or population loss, or the proposed area will provide an immediate substantial benefit to the zone. There are 96 enterprise zones statewide.

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