FRANKFORT, Ky. (July 2, 2012) – Governor Steve Beshear today signed into law a bill designed to spur job creation and significant investments in Kentucky’s automotive and parts manufacturing facilities.

“This legislation will open doors for significant investments in the automotive industry, which plays a vital role in Kentucky’s economy, employing more than 68,000 people in the Commonwealth,” Gov. Beshear said. “The success of the industry and the investments that result from this legislation will have far-reaching economic effects throughout all of Kentucky.”

Kentucky is currently home to 440 automotive-related industries that employ 68,100 people. Additionally, Kentucky ranks third highest in auto industry-related employment as a percent of total state employment among the top motor vehicle producing states in the United States.

Filed by Rep. Larry Clark, of Louisville, House Bill 400 amends the 2007 Kentucky Jobs Retention Act (KJRA) to allow manufacturers engaged in automobile, automobile parts, or automobile supplies manufacturing to seek incentives regardless of location in the Commonwealth.

“Given the success Kentucky has seen from the incentive package the General Assembly offered to Ford in 2007, it was only natural to extend this deal to the state’s other assembly plants and large auto parts suppliers,” said Rep. Clark. “My hope is that they will all take advantage of it the way Ford has, because it has the potential to generate thousands of new jobs and hundreds of millions of dollars of investment. Such a move would further solidify Kentucky’s already strong standing nationally and internationally in the automotive industry.”

The Kentucky General Assembly enacted KJRA as the primary tool in an incentive package that helped secure a $1.2 billion investment from Ford Motor Company to upgrade production capability at its two existing Louisville plants. Ford estimates it will hire more than 3,000 employees as a result of the incentives made available by the legislation.

The expansion of KJRA opens the door for other Kentucky auto manufacturers, as well as large-scale battery manufacturers to make significant investments in the state.

House Bill 400 will officially take effect July 12. The legislation will not have a fiscal impact to the state budget over the upcoming 2013-2014 biennium.

Information on Kentucky’s economic development efforts and programs is available at www.ThinkKentucky.com. Fans of the Cabinet for Economic Development can also join the discussion on Facebook at www.Facebook.com/ThinkKentucky or follow on Twitter at www.Twitter.com/ThinkKentucky.

The Kentucky Cabinet for Economic Development is the primary state agency in Kentucky responsible for creating new jobs and new investment in the state. New business investment in Kentucky in 2010 totaled more than $2 billion with the creation of nearly 11,900 new jobs. Information on available development sites, workforce training,incentive programs, community profiles, small business development and other resources is available at www.ThinkKentucky.com.