Louisville council to consider up to $489,514 in business tax and fee rebates

Louisville City Council is scheduled to consider proposed agreements offering up to $489,514 in tax and fee rebates to Arsenal Health and Infleqtion Quantum at its Oct. 20 meeting. The proposed resolutions list $208,400 for Arsenal and $281,114 for Infleqtion; payments would depend on eligible costs or tax receipts and other conditions.

The proposals are on the Council’s Oct. 20 consent agenda.

Arsenal proposes a health-optimization center and corporate headquarters in about 14,000 square feet at 600 S. Pierce Avenue. Its application describes medical care, diagnostics, fitness, recovery and wellness services. The company estimates $2.71 million in capital investment and $1.8 million in lease costs over five years. It projects 29 employees at the location after three years, including 20 new positions; those figures are projections, not requirements in the proposed agreement.

Under the Arsenal draft agreement, the city would rebate half of qualifying building and sign permit fees, up to $8,400 combined, and half of qualifying city sales-tax revenue from new retail sales at the location, up to $200,000. The sales-tax rebate would last five years after retail sales begin. The project would need to pass final inspection by Oct. 20, 2027, and comply with city code. Payments would also be subject to annual City Council appropriations and the city’s debt obligations.

Infleqtion is considering an expansion or move within Louisville for office and quantum-lab space. Its application describes work in quantum systems, optics, software, research and engineering, and estimates $13.83 million in tenant improvements, equipment and furnishings.

The Infleqtion draft agreement would rebate half of eligible building and sign permit fees and construction use tax, up to $91,214.25 combined. It would also rebate 90% of qualifying consumer-use tax on specified machinery, tools, software and space-flight property, and 50% on fixtures and equipment, up to $189,900. The project would need to be completed and pass final inspection by Dec. 31, 2027, and comply with city code. Payments would be subject to annual appropriations and the city’s debt obligations. The draft also provides for repayment of specified rebates if the company ceases Louisville operations within 10 years after occupancy.

Neither agreement sets a minimum Louisville job count or required investment amount. The Infleqtion draft’s potential rebate cap is $281,114.25, 25 cents more than the amount in its proposed resolution.