TAX CREDITS

Kentucky Business Investment (KBI) Program: Provides income tax credits and wage assessments to qualified businesses that make a minimum capital investment of $100,000, create at least 10 new full-time jobs, and satisfy minimum wage requirements for the newly created jobs.  The value of the tax credit may equal up to 100% of corporate income tax liability arising from the project and the wage assessments may equal up to 5% of employee gross wages.  The tax credits and wage assessments may be claimed for up to 10 years in most parts of the state with the eligibility period extending to 15 years in enhanced incentive counties.

Kentucky Reinvestment Act (KRA): Existing Kentucky manufacturers that invest at least $2,500,000 in capital expenditures may qualify for a corporate income tax credit.  The value of the credit may equal up to 100% of corporate income tax liability arising from the project and credits may be claimed for up to 10 years.  Approved companies must retain at least 85% of their employees at time of approval.

Kentucky Environmental Stewardship Act (KESA): Businesses that manufacture products that are found to have a positive impact on human health and the environment may receive a corporate income tax credit of up to 100% of corporate tax liability.  Qualified companies are required to make a capital investment of at least $5 million and can potentially recover up to 25% of the fixed projects costs and 100% of employee skills training.  The tax incentive may be claimed for up to 10 years.

REFUNDS

Kentucky Enterprise Initiative Act (KEIA): Provides a refund of sales and use tax paid by approved companies for building and construction materials.  Eligible equipment purchased for use in research and development and data processing facilities is also eligible for a refund.  Eligible companies must make a minimum capital investment of $500,000. 

TAX EXEMPTION

Property tax exemption: Manufacturing machinery is exempt from local property taxation and is subject to a reduced state tax rate of $0.15 per $100 of assessed valuation.  Goods in transit and pollution control equipment are exempt from state and local property taxation.

Sales & Use Tax Exemptions: Pollution-control equipment, industrial machinery and equipment and industrial fuels and raw materials are exempt from sales & use taxes.

JOB TRAINING

Bluegrass State Skills Corporation Skills Training Investment Credit:  Provides a credit against income tax liability for businesses that sponsor occupational or skills upgrade training programs for employees.

Bluegrass State Skills Corporation Grant Reimbursement Program:  Provides matching grant funds for customized business and industry-specific training programs. 

Last Updated: June 2017


 
BIGGINS LACY SHAPIRO & COMPANY
 
PRINCETON
47 Hulfish Street, Suite 320
Princeton, NJ 08542
(609) 924-9775
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Chicago, IL 60606
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