UPS receives additional tax breaks for Worldport expansion

United Parcel Service Inc. again has received tax breaks from Kentucky to help offset some of the costs of the USD 1 billion expansion project under way at its Worldport air cargo hub at Louisville International Airport.

UPS was approved by the Kentucky Economic Development Finance Authority for USD 2.5 million in state sales tax refunds during its June 28 meeting in Frankfort. The refunds are related to construction materials purchased as part of the Worldport expansion project.

At yesterday’s KEDFA meeting, the package-delivery giant submitted the second of what will be three applications for such tax credits, according to Mike Mangeot, public relations manager for UPS in Louisville.

The company was approved for USD 15 million in sales tax refunds a year ago. The third application is planned for next year.

UPS announced its Worldport expansion plans in May 2006. UPS received preliminary approval for USD 31.6 million in tax incentives for up to 10 years when the project was announced. Those incentives were based on job creation. The expansion of Worldport is expected to create 1,284 full-time jobs and 3,787 permanent part-time positions.

UPS already is one of the largest employers in Kentucky, with more than 20,000 workers.

The project began last summer and is on schedule, Mangeot said. The first phase is expected to be finished in 2009 and the entire project in 2010.