Gov. Andy Beshear is urging Kentucky’s small businesses that are investing in their communities and creating jobs to apply for a tax credit of up to $25,000.
To receive the Kentucky Small Business Tax Credit, qualifying small businesses should apply now to ensure their best chance of approval in time for this year’s tax filings. Tax credits are available to eligible companies that added at least one new full-time employee and invested $5,000 or more in qualifying equipment or technology within the past 24 months.
“We want to make sure our small business owners know that this program is available, and we remind them that it is time to apply,” Gov. Beshear said. “This program encourages our small businesses to grow even more, which benefits their community and our great state.”
Qualifying small businesses may be eligible to receive a state income tax credit ranging from $3,500 to $25,000 per year. The tax credit amount depends on the number of jobs created and the amount invested in new equipment or technology. Most for-profit businesses with 50 or fewer full-time employees will qualify, including construction, manufacturing, retail, service and wholesale companies.
An applicant must spend $5,000 or more on qualifying equipment or technology. Examples of qualifying equipment or technology include but are not limited to: computers, equipment, furniture, fixtures, furnishings (excluding artwork), and vehicles titled in the legal name of the business. Real property, buildings, and consumable supplies do not qualify.
To learn more about the program and/or eligibility, and to access the current version of the application, click here, contact the Kentucky Cabinet for Economic Development at 800-626-2930, or email [email protected].
The Kentucky Small Business Tax Credit is a signature program offered through KY Innovation, the cabinet’s office that encourages growth among Kentucky’s startups and small businesses. Other KY Innovation resources include programs providing access to credit, mentoring, and advocacy. Entrepreneurs and startups also can connect with multiple resources at the six regional KY Innovation Hub offices statewide.
