The Iowa Economic Development Authority (IEDA) board has approved tax credits of more than $9.8 million to support the expansion of the Sub-Zero facility in southwest Cedar Rapids.
The tax credits are being awarded under the IEDA’s Business Incentives for Growth (BIG program), according to an IEDA release.
The $196 million capital investment is expected to create 312 jobs, of which 115 are incented at a qualifying wage of $30.41 per hour.
Sub-Zero announced plans for the 225,000-square-foot expansion in April.
The project will serve as an expansion of the existing $140 million, 600,000-square-foot plant, which is set for a formal ribbon-cutting ceremony May 22.
According to a release, the project is expected to “enhance production capacity while further integrating advanced manufacturing technologies into the facility.”
$70 million of the expansion investment will pay for property development, while the other $120.3 million will pay for machinery and equipment.
Cedar Rapids economic development project coordinator Scott Mather told the Cedar Rapids City Council in April that the expansion project should take about 24 months to construct, with work beginning in August and wrapping up by August 2028.
Headquartered in Madison, Sub-Zero manufactures premium kitchen appliances under the Sub-Zero, Wolf and Cove brands.
The credits to Sub-Zero were among IEDA awards to five manufacturing companies across Iowa, supporting the creation of 521 jobs and generating nearly $400 million in new capital investment for the state. Other projects are located Charles City, Milford, Montezuma and Butler County.
The IEDA board also approved assistance for four startups in Ames, Audubon and Des Moines. In addition, projects in Des Moines and Dickinson County received Community Attraction and Tourism (CAT) grants.
