2015 Kentucky Incentives Program Updates
Kentucky Corporate Income Tax – KY Business Investment Program
Any business entity engaged in manufacturing, agribusiness, nonretail service or regional/national headquarters is eligible for the program. Kentucky counties are designated “enhanced incentive” eligible by meeting at least one of the three following criteria: counties with an average annual unemployment rate exceeding the state average annual unemployment rate in the five preceding calendar years, counties with an unemployment rate greater than 200% of the statewide unemployment rate for the preceding year, or counties identified as one of the sixty most distressed counties based on a three part test ( three year unemployment, education attainment, and road quality).
Kentucky Corporate Income Tax – KY Environmental Stewardship Credit
Any business entity that manufactures an environmental stewardship product, which is a unique product that has a substantial positive impact on the environment, may qualify for a 100% credit against the Kentucky tax liability generated by the project. Eligible projects must have at least $5,000,000 in eligible costs to participate in the program.
Kentucky Corporate Income Tax – KY Bluegrass Skills Training Investment Credit Program
The skills training investment program promotes employment opportunities for Kentucky residents through tax credits with business and industry. The program provides tax credits to companies for company specific training activities. A company must submit an application and the maximum tax credit amount for individual companies during each 2 year state biennium funding period is the lesser of $100,000 or $500 multiplied by the company’s number of full time Kentucky resident employees.
Kentucky Corporate Income Tax – KY Investment Fund Act credit
The Kentucky Investment Fund Act offers a 40% tax credit to certain personal and corporate investors in approved investment funds. The purpose is to encourage capital investments in the commonwealth of Kentucky, the establishment of small businesses in Kentucky, and the development of new products and technologies in the state through capital investments.
As tax legislation changes and evolves it’s essential to maintain a proactive and responsive approach to your tax strategy. Now more than ever it’s important to review state and local tax measures to ensure that you are ahead of the curve. Looking for assistance with tax consulting and compliance, contact Barnes Denning today! For additional information on Kentucky tax incentives, SALT, or any other tax matters, contact us at 513-241-8313, or click here to have a representative reach out to you. We look forward to speaking with you soon!