A growing aviation subcontractor will ask the Wichita City Council on Tuesday for a tax exemption.
Leading Technology Composites, 2626 W. May, is seeking a five-year tax exemption for the 48,400-square-foot expansion of its current facility. The expansion, under the city’s Economic Development Exemption Program, involves 49 new jobs over the next five years, driving the company’s total local employment to 165 by 2017, according to city documents. The new jobs will pay an average salary of $37,677 per year.
Based on 2012 mill levies, the estimated tax value of the first year’s exemption is $39,184 – costing the city $10,553 in tax revenue, the county $9,570, the state of Kansas $488 and USD 259 $18,573.
LTC, founded in 1993, makes composite-based materials and products for aerospace, military and automotive use. It produces parts for vehicle systems and personal body armor plates for the U.S. military, along with structural assemblies for aerospace builders and safety products for commercial automotive clients.
“We continue to grow in all segments of our business, primarily aerospace,” said Rick Scheer, senior vice president of business development and engineering for the company. “Not only local manufacturers but those not located in Wichita, and that’s caused us to position ourselves for the future. We’re expanding proactively to position ourselves for that growth.”
According to city documents, LTC exports 95 percent of its products out of Kansas, to customers like BAE Systems, Lockheed Martin, Bombardier and Ford.
This is the third tax exemption request the company has made for expansions in the past six years. The company was previously approved for exemptions in 2007 and 2010.