The Harrison County Council Monday night approved a tax abatement for a $5.5 million investment for Howard Packaging.

The plastic bottle company plans to add another 100,000 square feet to its facility in the Harrison County Business Park north of Corydon and purchase the necessarily equipment to go with it.

The plan projects nine new jobs for the company, located at 850 Chamber Lane.

"Part of our job is to encourage business to grow and expand in Harrison County," Tom Fields, economic development director of communication and expansion, said. "Tax abatements on major business investments of plant and equipment is one way we do that."

A tax abatement, Fields said, is simply a reduction in the amount of property taxes a business pays over a specified time.

In Harrison County, abatements are offered for new investment in a plant or equipment that also create jobs. The abatements available for property is 10 years and five for equipment.

"Harrison County Economic Development supports this abatement," Fields said. "It reduces their tax burden by $250,000 over the next 10 years."

Trevor Dana, Howard Packaging representative, before describing the company, said they have already started construction.

"We supply all the bottles for Lucas Oil," he said. "We're their only supplier, only customer. We're like a sister company to them. As they grow, we expect to grow just as much as them. We try to keep up. The building and equipment is basically for us to keep up with their growth."

The council unanimously approved the abatement.