STAFF REPORT
Source: Glasgow News 1
Gov. Andy Beshear is urging Kentucky small businesses that are expanding their workforce and investing in operations to apply for a state tax credit worth up to $25,000 annually.
Overview of the Kentucky Small Business Tax Credit Program
- Purpose: To reward companies hiring new employees and investing in qualifying equipment or technology.
- Application Deadline: Complete applications submitted by November 1 will be reviewed for 2026 tax credit eligibility. Applications received afterward may not be approved until the 2027 tax year.
Eligibility Criteria
- New Employees: Businesses must have added at least one net new full-time employee.
- Investment Requirement: Businesses must invest at least $5,000 in qualifying equipment or technology within the last 24 months.
- Eligible Businesses: Most for-profit companies with 50 or fewer full-time employees qualify, including sectors like construction, manufacturing, retail, service, and wholesale.
Credit Amount
The income tax credit ranges from $3,500 to $25,000 per year depending on the number of new jobs created and the amount invested in new equipment or technology.
Impact of the Program
- The tax credit program aims to support small business owners and entrepreneurs investing in their workforce and long-term success in Kentucky.
- Over the last year, the program allocated more than $1.2 million in credits, generating over $3.9 million in investments and creating 352 new jobs.
- Since its inception, it has helped create over 5,100 jobs, with total investments exceeding $53.7 million and tax credits allocated totaling over $17.4 million.
Additional Resources
Other resources from KY Innovation include access to credit, business mentoring, and advocacy. Entrepreneurs can connect with regional KY Innovation Hub offices in Kentucky for further guidance and support.
For more details and to access the application, visit the websites of KY Innovation and the Kentucky Cabinet for Economic Development.
Key Facts
- Application Encouragement: Gov. Beshear encourages eligible small businesses to apply for the tax credit.
- Credit Range: The credit amounts from $3,500 to $25,000 per year.
- Job Creation and Investment Requirement: A minimum of one new full-time employee and $5,000 invested in qualifying technology or equipment within 24 months is needed.
- Business Qualification: Most for-profit firms with 50 or fewer employees are eligible.
- Application Timing: Submit by November 1 for 2026 tax credit consideration; later applications may face a delay.
- Job Creation Impact: The initiative has facilitated over 5,100 new jobs and $53.7 million in investments.
- Application Access: Visit KY Innovation and the Kentucky Cabinet for Economic Development for further assistance.
