INCENTIVES

Below are summaries of the most utilized local and state incentives.

PAYROLL GRANT

Kentucky Business Investment (KBI) Program
This grant provides 5 percent of gross wages for up to 15 years for qualifying projects (10-plus new jobs, capital investment of at least $100,000, average wage of at least $9.06/hour plus benefits of an additional 15 percent)

CORPORATE TAX REBATE

Kentucky Business Investment (KBI) Program
This credit can provide up to 100 percent of corporate income or limited liability entity tax arising from a project. The company may collect up to 100 percent of initial investment over a 15 year period of time as a credit against state corporate taxes.

SALES & USE TAX REFUND

Kentucky Enterprise Initiative Act (KEIA)
For new or expanding projects, 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. KEIA is also available for Kentucky sales and use tax refunds for eligible equipment.

WORKFORCE/COST OF LABOR INCENTIVES

Workforce Training Incentives
By utilizing Kentucky’s College System, new industry may qualify for up to 100% of eligible training costs associated with the hiring of new employees. The KCTCS-Trains program offers customizable workforce and industry training to relocating or expanding companies. Additional workforce incentives and grants are available through the Bluegrass State Skills Corporation.

LOANS & BONDS

Direct Loan Program
The Kentucky Economic Development Finance Authority (KEDFA) encourages expansion and job creation by providing business loans to supplement other financing. The Direct Loan Program provides loans at below-market interest rates for fixed asset financing for agribusiness, tourism, industrial ventures, or the service industry.

Industrial Revenue Bonds
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/processing projects.

For a full list of Kentucky State Incentives and Programs, please check out the
Cabinet for Economic Development financial incentives page.

We can help you secure incentives to make expansion projects viable!

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