Economic Incentives & Tax Credits
High impact incentives for small businesses in Kentucky
Kentucky has a variety of strengths that make the Bluegrass State the best place to do business in the U.S., from low utility costs to unmatched logistical advantages. Kentucky's pro-business climate provides a number of incentives for businesses. The Kentucky Economic Development Finance Authority (KEDFA), established within the Cabinet for Economic Development to encourage economic development, business expansion and job creation, provides financial support through an array of financial assistance and tax credit programs.
Top tax incentive programs for small and medium-sized businesses in Kentucky
Kentucky Business Investment Program
Provides income tax credits and wage assessments to new or existing businesses.
Kentucky Reinvestment Act
Existing Kentucky manufacturers that invest $1 million for leased projects and $2.5 million for all others in capital expenditures and who employ at least 25 full-time employees as a result of the project may qualify for a corporate income tax credit.
Kentucky Enterprise Initiative Act
Businesses that make an investment of $500,000 in an economic development project are eligible to receive a refund of sales and use tax paid.
The Kentucky Small Business Tax Credit Program
The program allows eligible small businesses paying taxes imposed by KRS 141.020 (income tax on individuals), 141.040 (corporation income tax), or 141.0401 (limited liability entity tax) to apply for a Kentucky state income tax credit.
Incentives for Energy-Related Business
Companies whose primary activity to be conducted in Kentucky includes the operation of a cryptocurrency facility may be eligible for incentives if the minimum investment requirement for eligible projects is met.
Direct Loan Program
KEDFA offers a mortgage loan program to work in conjunction with private financing. The program is designed to allow businesses to obtain the long-term financing needed to encourage growth.
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Subcity empowers small businesses, CPAs, and finance professionals to identify and apply for economic incentives and tax credits. Each year, over $100 billion is allocated for incentives across local, state, and federal programs in the U.S. Unfortunately, a significant portion of this money goes unclaimed or to large corporations with teams of tax attorneys and legal experts.
Subcity utilizes a comprehensive database of incentives to connect small businesses with the programs that were designed to help them create jobs, invest in their communities, and grow their business. Subcity charges a 10-20% fee for the programs they successfully secure, ensuring zero risk for clients as payment is contingent on results. Subcity is on a mission to democratize access to capital for America’s small businesses and has already delivered tens of millions of dollars in tax incentives for clients across the country.