DES MOINES, Iowa (AP) -

Cedar Ridge Vineyards, Winery and Distillery is expanding its operation in northern Johnson County by adding more production space and completing a grain processing operation for its growing whiskey business.

The project is estimated to cost just over $1 million. The state will provide tax credits valued at more than $40,000.

Owner Jeff Quint says more space is needed for production and warehousing as the business grows into new markets.

In 2005 Cedar Ridge became the first craft distillery to start up business in Iowa since Prohibition in the 1920s.

In July 2010, Cedar Ridge launched a bourbon whiskey product.

The company, located near Swisher, produces over 15 spirits and liqueurs along with a line of more than 20 wines.

The expansion more than doubles production capacity.