Gov. Andy Beshear is urging the owners of Kentucky’s small businesses to apply for a tax credit of up to $25,000.
Tax credits are available to eligible companies that added at least one net new full-time employee and invested $5,000 or more in qualifying equipment or technology within the past 24 months.
“The entrepreneurs running Kentucky’s small businesses are a major driving force behind our strong economy,” Beshear said. “This program rewards small businesses for continuing to invest in the commonwealth’s people and products, enabling more future growth for businesses and their communities – and now is the time to apply.”
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.
In 2022, the program incentivized the creation of 402 private-sector jobs and over $3.56 million in investments by 138 small businesses. Each participating company hired approximately three people on average and received almost $10,000 in tax savings. Since its inception, the program has assisted in creating over 3,900 jobs and $40 million in new investments.
The Kentucky Small Business Tax Credit is a signature program offered through KY Innovation, the cabinet’s office that encourages growth among Kentucky’s small businesses and entrepreneurs.
To learn more about this program and others offered by KY Innovation – and to access the current version of the KSBTC application – visit kytaxcredit.org, contact the Kentucky Cabinet for Economic Development at 800-626-2930, or email [email protected].
