Holyoke companies helped by state tax credits
Date: 10/3/2012
By G. Michael Dobbs
news@thereminder.comBOSTON — For one Holyoke business, being selected to participate in the state's Economic Development Incentive Program (EDIP) means adding a new employee and having the resources to make improvements to a building the company is buying.
Last week, the Economic Assistance Coordinating Council (EACC) announced that two Holyoke businesses — U.S. Tsubaki Power Transmission LLC and Dirk Auferoth & Associates, LLC were among the eight companies selected for funding by the EACC in EDIP.
Statewide, the eight projects were "expected to create 264 new jobs and retain 463 existing jobs, in addition to leveraging over $62 million in private investment and supporting construction projects across the Commonwealth," according to the EACC. The EDIP is the Commonwealth's investment tax credit program for businesses.
Dirk Auferoth, owner of Dirk Auferoth & Associates LLC told
Reminder Publications that the Special Tax Assessment valued at $50,019 of the building he is buying and renovating in Holyoke and $20,000 in EDIP Investment Tax Credits is allowing him to hire at least one new employee and giving the resources for the renovation work.
"It's like money in my pocket," he said.
Receiving the Special Tax Assessment and the investment tax credits "really helped me make the decision to movie forward," he explained.
Another factor in Auferoth's decision to expand his facility and workforce is that "business seems to be getting better."
Auferoth's company is an architectural woodworking shop that manufactures custom cabinetry and millwork for high-end residential and commercial properties. He has been in business in Holyoke for the last eight years. He explained that he was originally located in Brooklyn, N.Y., but moved to Holyoke for both the quality of life and the lower overhead of doing business.
He praised Holyoke's Economic Development Office for assisting him on the Special Tax Assessment.
"The city of Holyoke does a great job," he said, adding that the Economic Development Office was responsible for his moving to Holyoke.
U.S. Tsubaki is a subsidiary of Tsubakimoto Chain Company has been in Holyoke since 1988 and currently manufactures $40 million of the widest variety of roller chains on the market with applications as diverse as food packaging, forklift trucking and oilfield mining. The company is investing $6.3 million in the 20,000 square-foot expansion of its existing 209,000 square-foot facility.
Holyoke is supporting this Manufacturing Retention Project with a Special Tax Assessment valued at $34,329. The EACC has approved $270,000 in EDIP Investment Tax Credits. The two actions are expected to create 15 new full-time jobs and retain 175 full-time jobs at the company.
"The Patrick-Murray Administration remains committed to growing our economy and creating jobs through supporting our small businesses and helping them grow and expand here in the Commonwealth," Housing and Economic Development Secretary Greg Bialecki said. "These EDIP investments are consistent with that goal and part of an overall economic development strategy designed to help Massachusetts continue to recover, and position our businesses and cities and towns for long-term growth and prosperity."
