Incentives
Kentucky Financial Incentives
Working closely with the Kentucky Cabinet for Economic Development, TVA and local governments, KLED offers incentives for new and expanding industry, workforce training, small businesses and more. KLED is here to guide you every step of the way, offering expert assistance to streamline the process and maximize your company’s growth opportunities
New & Expanding Industry
Kentucky Business Investment (KBI) Program
Provides income tax credits and wage assessments to new and existing agribusinesses, headquarters operations, manufacturing companies, coal severing and processing companies, hospital operations, alternative fuel, gasification, energy-efficient alternative fuels, renewable energy production companies, carbon dioxide transmission pipelines and non-retail service or technology related companies that locate or expand operations in Kentucky.
Industrial Revenue Bonds (IRB)
IRBs issued by state and local governments in Kentucky can be used to finance manufacturing projects and their warehousing areas, major transportation and communication facilities, most health care facilities, and mineral extraction and processing projects.
Kentucky Enterprise Initiative Act (KEIA)
KEIA provides a refund of Kentucky sales and use tax paid by approved companies for building and construction materials permanently incorporated as an improvement to real property. It is also available for Kentucky sales and use tax refunds for eligible equipment used for research and development, data processing equipment or flight simulation equipment.
Job Retention
Kentucky Reinvestment Act (KRA)
Provides tax credits to existing Kentucky companies engaged in manufacturing, agribusiness, non-retail service or technology activities, headquarters operations, hospital operations, coal severing and processing, alternative fuel, gasification, energy-efficient alternative fuels, renewable energy, or carbon dioxide transmission pipelines on a permanent basis for a reasonable period of time that will be investing in eligible equipment and related costs of at least $2,500,000 for owned facilities and $1,000,000 for leased facilities (excluding rent).
Entrepreneurs & Small Business
The Kentucky Small Business Tax Credit (KSBTC)
The KSBTC program is designed to encourage small business growth and job creation by providing a nonrefundable tax credit to eligible businesses hiring one or more eligible individuals and investing at least $5,000 in qualifying equipment or technology. With certain exceptions, most for-profit businesses with 50 or fewer full-time employees are considered eligible for this program. The KSBTC program has a limited allocation of available tax credits.
Angel Investment Tax Credit
The Kentucky Angel Investment Tax Credit offers a credit of up to 40 percent of an investment in Kentucky small businesses. Prior to investment, both the investor and small business must submit applications for certification. Each investment must be certified in advance, as well. Refer to the Kentucky Angel Investment Act Guidelines for program details and qualifying criteria.
Workforce Training
Bluegrass State Skills Corporation Skills Training Investment Credit
Provides credit against Kentucky income tax to existing businesses that sponsor occupational or skills upgrade training programs for the benefit of their employees.
Bluegrass State Skills Corporation Grant Reimbursement Program
Provides matching grant funds for customized business and industry-specific training programs.
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