A turbine service company in Franklin County is expanding its operations in a new district that provides tax breaks.

Reliable Turbine Services Inc. is working on a $1 million expansion that is expected to create a minimum of five new jobs, said Sullivan City Administrator J.T. Hardy.

The expansion will be in the Village of Oak Grove, Hardy said, adding that it will be in the new Sullivan Enhanced Enterprise Zone.

Tim Weiss, president of Reliable Turbine Services, said the company is adding 18,000 square feet for a welding shop and office space.

The company provides repairs and replacement parts for large steam turbines and manufactures parts.

The new jobs will result in more disposable income for the area, Hardy said, adding that they are expected to pay $40,000 to $45,000.

“Our whole area is benefiting from the (Enhanced Enterprise Zone) program,” Hardy said, adding that the turbine company’s expansion is expected to be completed in December.

Other businesses in the area also are looking to expand, he said, noting that the tax breaks can help them keep more money to put into their businesses.

The Enhanced Enterprise Zone program is offered by the Missouri Department of Economic Development to help areas that are deemed economically distressed. Qualified areas must have an unemployment rate higher than the state or county average and meet certain income requirements, Hardy said.

In order for a company to receive the tax benefits it must pay at least 50 percent of the employees’ health insurance. The program also requires that at least two new full-time jobs be created and that there be a minimum capital investment of $100,000.

Hardy explained that if a company goes above and beyond those minimum requirements it qualifies for greater tax breaks. For instance, since Reliable Turbine Services Inc. is offering higher wages, making a larger capital investment and creating more than the minimum number of jobs it is proposed to get a 15-year property tax break of 85 percent.

The maximum a company can get under state law is a 90 percent tax break for 20 years, and the minimum is a 50 percent tax break for 10 years.