Southwest Airlines will be expanding its impact on Denver International Airport after the carrier received $12.5 million in tax credits.

According to The Associated Press, Southwest will receive the credits for a major expansion over the next eight years that could bring 1,000 new jobs to the Denver airport. The airline chose the Colorado city over Nashville, Tennessee and Houston for the expansion.

The Colorado Economic Development Commission agreed to issue the tax credits as long as Southwest agreed to pay the new employees hired for the project an average annual wage of just over $128,000.

A Southwest spokesperson Dan Landson told local media the expansion would result in added flights as demand grows. In addition, the project will cause the airline to hire more baggage handlers, gate attendants, flight attendants and pilots.

Denver International Airport is already undergoing a $1.5 billion expansion that will add 39 new gates, with 16 of those gates requested by Southwest. The carrier already employs 4,300 people at the Denver airport.

The airline also announced in October it planned to launch daily nonstop service between San Diego and Kahului and Honolulu, Hawaii next April. The once-daily flights between San Diego and Kahului on Maui will begin April 14, 2020, followed by a once-daily service between San Diego and Honolulu on Oahu starting April 20, 2020.