Blue Run Spirits will establish a new whiskey operation in Georgetown, Kentucky. The approximately $51 million project is expected to create 45 jobs.

The location will include a 35,000 square foot distillery and a 20,000 square foot rickhouse and will serve as the company’s first vertically integrated distilling operation and future headquarters. The investment will be used to purchase distillation equipment, site acquisition and construction costs, and other start-up expenses.

“When we launched Blue Run Spirits in October 2020, we never imagined a distillery would be in our future, but our unprecedented growth has deemed this a necessity, which is an incredibly exciting prospect for our entire team” , said the CEO of Blue Run Spirits. and co-founder Mike Montgomery. “The generous support of the Commonwealth makes this a reality. We look forward to becoming a dynamic contributor to the economic vibrancy of Scott County and Georgetown and to deepening our connection to a region so important to the rich history and promising future of bourbon in Kentucky.

To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) last Thursday approved a 10-year incentive agreement with the company under the Kentucky Business Investment Program.

The performance-based agreement can provide up to $700,000 in tax incentives based on the company’s investment of $50,976,430 and annual goals of creating and maintaining 45 full-time jobs in Kentucky over 10 years and paying an average hourly wage of $31.92 including benefits. through these jobs.

Additionally, KEDFA has approved Blue Run Spirits for up to $150,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows licensed companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development, and electronic processing.

“Our state’s bourbon industry continues to gain momentum and reach new heights,” Governor Andy Beshear added. “This investment by Blue Run Spirits is a welcome addition to the Georgetown and Scott County community and Kentucky’s bourbon and tourism scene. I want to thank the company’s leadership for their vision to grow in the Commonwealth and add to Kentucky’s position as the bourbon capital of the world.

By achieving its annual objectives over the term of the agreement, the business may be eligible to retain a portion of the new tax revenue it generates. Blue Run may claim qualifying incentives against its income tax and/or salary assessments. Additionally, the business may receive resources from Kentucky labor service providers.

“The Blue Run Spirits project is another perfect example of diversifying our Georgetown/Scott County economy and will give greater visibility to our Bourbon heritage and tourism industry. A significant and welcome investment, said Scott County United Executive Director Jack Conner.

Blue Run Spirits’ planned expansion builds on the recent growth of bourbon and spirits in Kentucky. Since the start of the Beshear administration, the Commonwealth spirits industry has announced more than 50 new location or expansion projects totaling more than $1.1 billion in planned investment and creating more than 900 full-time jobs full advertised. Currently, approximately 60 spirits establishments directly employ more than 5,300 people.