South Central Kentucky is a pro-business community, and our economic development staff strive to gather incentives for new and expanding businesses in the region. Contact President & CEO Ron Bunch, CEcD at 866-330-2422 or firstname.lastname@example.org to discuss your incentive options.
The following are financial incentives offered by the Kentucky Cabinet for Economic Development. More information about these incentives can be found at www.thinkkentucky.com.
Bluegrass State Skills Corporation Grant Reimbursement Program
Provides matching grant funds for customized business and industry-specific training programs.
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.
Direct Loan Program (KEDFA)
Provides business loans to supplement other financing. The Direct Loan Program provides loans at below-market interest rates (subject to the availability of state revolving loan funds) for fixed asset financing for agribusiness, tourism, industrial ventures, or the service industry. Retail projects are not eligible.
High-Tech Investment / Construction Pool
Provides funds through the Department of Commercialization and Innovation to help further the commercialization of a product, process, or other innovation. Incentives awarded are in the form of forgivable loans, with the amount of the loan primarily based on the applicant company’s projected high-tech job creation. These forgivable loans typically range from $150,000 to $400,000 depending upon the project.
Incentives for Energy Independence Act (IEIA)
Provides incentives of up to 50% of the capital expenditures for an alternative fuel facility using biomass (minimum investment of $25 million) or coal (minimum investment of $100 million), and for a renewable power facility that meets minimum electric output standards based upon the power source (minimum investment of $1 million). Incentives may include a reimbursement of sales and use taxes paid on tangible personal property, a tax credit of the income tax and limited liability entity tax owed by the company, and wage assessment incentives up to 4% of gross wages of each employee whose job was created as part of the project. Advanced disbursements may also be available.
Kentucky Business Investment (KBI) Program
Provides income tax credits and wage assessments to new and existing agribusinesses, regional and national headquarters, manufacturing companies, and non-retail service or technology related companies that locate or expand operations in Kentucky.
Projects locating in certain counties may qualify for enhanced incentives. Click here for a map of the counties receiving enhanced incentives. In South Central Kentucky, the following counties qualify for these enhanced incentives:
Kentucky Environmental Stewardship Act (KESA)
Provides incentives for companies manufacturing products that have a substantial positive impact on human health and the environment. Companies with projects approved under KESA must have at least $5 million in eligible cost and can potentially recover up to 25% of the projects fixed asset cost and 100% of employee skills training. The tax incentive is available for recovery over a 10-year period.
Kentucky Investment Fund Act (KIFA)
Provides tax credits to individuals and companies that invest in approved venture capital funds. Investors in KIFA approved funds are entitled to a 40% credit against Kentucky individual or corporate income tax or Kentucky corporate license tax.
Kentucky Reinvestment Act (KRA)
Provides tax credits to any existing Kentucky company engaged in manufacturing and related functions on a permanent basis for a reasonable period of time who will be investing in eligible equipment and related costs of at least $2.5 million.