Webco receives tax credit approval

The Springfield HVAC equipment manufacturer July 10 received Missouri Department of Economic Development approval for state tax credits in exchange for the creation of jobs and capital investment.

Webco on April 1 began relocating from its North Prince Lane building to the former Pure-Flo Precision facility at 3300 E. Pythian, which is located in an enhanced enterprise zone. That distinction is partly what attracted the company to the property, said Dennis Coons, information technology manager at Webco.

The company’s 120 employees have relocated but are “still working some things out,” Coons said.

Once company officials knew they would be located in the zone, Coons began seeking the tax credits available to them. The six-month process was stringent, he said, but worth it.

“This will be to help us in our investments,” Coons said, as well as add efficiency and productivity.

The manufacturer has committed to creating 150 jobs – all in skilled trades, Coons said – with average wages of $27,310. Webco also must invest at least $2 million in the company, though Coons said more could be spent as the project goes on.

Webco will receive up to $415,963 in credits over five years, if the company holds up its end of the deal.

Webco will use the credits to pay the wages of its new workers and purchase new equipment, now that it has an additional 20,000 square feet of space. The Pythian building is 100,000 square feet.

DED spokeswoman Misti Preston said Webco’s tax credits can be sold or redeemed at the end of the year and cannot roll over to the next year, regardless of any tax liability.

The company has purchased one piece of equipment so far, a machine that cuts metal so Webco doesn’t have to purchase metal in precut sheets. Webco also has begun taking applications for new jobs, which include fabricators, electricians, pipe-cutters, service technicians and product engineers. Applications are available at www.webco-inc.com.

New job positions and equipment with enhanced capabilities are setting Webco up for revolutionary changes, Coons said.

How it Works

What Webco gets: up to $415,963 in tax credits dispersed over five years

What Webco gives: 150 new jobs, with average wages of $27,310, and at least $2 million in capital investment