Sub-Zero Group determines what it needs to continue driving innovation
Sub-Zero Group, Inc., has been manufacturing best-in-class kitchen appliances in Wisconsin since its founding in 1945. Now a third-generation family-owned business with three brands—Sub-Zero, Wolf, and Cove—the company continues to grow its product lines and invest in its future. In 2019, that meant investing in a research and development center to facilitate new product development and innovation. Once the decision had been made to go forward with the project, Sub-Zero Group faced the same questions any expanding company had to answer: how much to invest, and where? One question they didn’t have to ask was if they’d have the support they needed from state and local economic development organizations.
Sub-Zero Group goes further by leveraging WEDC tax credits
Thanks to a skilled workforce and plenty of manufacturing expertise, Wisconsin was already an ideal location for Sub-Zero Group. WEDC recognized that the company was looking at whether to restructure their current facilities or make a substantial investment in new construction. Given the project’s potential capital investment and new job creation, the expansion was a perfect fit for WEDC’s Business Development Tax Credit Program.
The program provides eligible companies with refundable state tax credits based on the size of their capital investment and the number of jobs it plans to create. Sub-Zero Group would be able to offset some of its tax liability, giving the company additional capital to invest or use as leverage for further financing. This boost would help the company make the best investment it could in both the company and the community.
Sub-Zero Group secured $1,000,000 in Business Development Tax Credits from WEDC, as well as $5.5 million in tax incremental financing from the City of Fitchburg, to support its $70 million expansion. The manufacturer’s new 350,000 square foot R&D center is expected to create 100 new jobs with an average hourly wage of $40.
Built adjacent to its Fitchburg headquarters, the facility allows Sub-Zero refrigeration, Wolf cooking, and Cove dishwashing to continue to meet the highest standards of reliability, innovation and design. By partnering with WEDC and local officials, Sub-Zero Group has ensured its success well into the future.