Kentucky Small Business Tax Credit Program
FRANKFORT, Ky. (Sept. 3, 2026) – Governor Andy Beshear is urging small businesses in Kentucky that are generating jobs and investing in their communities to apply for a tax credit of up to $25,000 through the Kentucky Small Business Tax Credit (KSBTC) program.
“Kentucky’s small businesses fuel our economy, and their success is a win for our entire commonwealth,” said Gov. Beshear. “Team Kentucky is committed to supporting entrepreneurs throughout the state, just as they have supported their local communities through continued investments and good-paying jobs.”
Key Program Details
- Eligibility: Small businesses that added at least one net new full-time employee and invested $5,000 or more in qualifying equipment or technology within the past 24 months may qualify.
- Tax Credit Amount: Ranges from $3,500 to $25,000 per year, depending on the number of new jobs created and the amount invested.
- Application Deadline: Complete applications received by November 1 will be reviewed for 2026 tax-credit eligibility. Late applications may not qualify until the 2027 tax year.
- Business Size: Primarily for-profit businesses with 50 or fewer full-time employees.
Impact of the Program
In the last year, approved businesses received over $1.2 million by investing more than $3.9 million into their operations and creating 352 new jobs in Kentucky. Since the program’s inception, it has supported the creation of over 5,100 new jobs and allocated more than $17.4 million in tax credits.
Additional Resources
The KSBTC is part of the various programs offered by KY Innovation, which aims to foster growth among Kentucky’s small businesses and entrepreneurs. These resources include:
- Access to credit
- Mentoring
- Advocacy
Small businesses are encouraged to connect with KY Innovation Hub offices located throughout the state for additional support.
How to Learn More
To find out more about the KSBTC and other initiatives:
- Visit: NewKentuckyHome.ky.gov/Entrepreneurship/KSBTC
- Call the Kentucky Cabinet for Economic Development at 800-626-2930
- Email: info@kyinnovation.com
Take advantage of this opportunity to invest in your future and the community!
