MANCHESTER, Iowa -- The state has signed off on more than $500,000 in tax credits for a Manchester manufacturer's expansion. 

The Iowa Economic Development Authority board approved $507,000 in credits for XL Specialized Trailers, contingent on the business adding 65 positions over the next three years, with wages of at least $21.43 per hour, and maintaining that total for at least two years. 

The company currently employs 160 people in Manchester and plans to expand its facility by 55,000 square feet. Company officials told the Telegraph Herald last week that the project would cost $5 million to $6 million, but state documents list a total investment of $7.4 million 

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Company officials also told the TH that they aimed to add the 65 positions by the end of next year. 

At that time, XL was working with the state in addition to the city to receive zoning permits and tax incentives, and the company hopes to begin construction on the project by the end of this year.

Manchester City Manager Tim Vick previously said City Council members will hold a public hearing during their Dec. 14 meeting on a resolution to award XL Specialized Trailers an 80% tax rebate of up to $1.2 million over the course of the 10-year agreement. This financing method incentivizes property owners to improve or renovate their buildings by giving them back a portion of the increased property taxes they would have incurred as a result of the improvements.