| State: |
KY |
| Incentive Type: |
Income/Franchise Tax Incentives and Credits |
| Incentive Title: |
Investment Credits |
| Description: |
1. KENTUCKY RURAL ECONOMIC DEVELOPMENT ACT (KREDA): Nonrefundable tax credit for new and expanding manufacturing projects. May receive both state income tax credits and job assessment fees for up to 100% of capital investment.
2. KENTUCKY INDUSTRIAL DEVELOPMENT ACT (KIDA): Nonrefundable tax credit for new and expanding manufacturing projects. The company may choose between one of the two credits: a) a 100% tax credit against the state income tax arising from the capital investment involved in the project; OR b) the company is eligible to receive 3% assessment of the gross wages of each new employee (the employee must be subject to Kentucky income tax). The tax credit may last for 10 years.
3. KENTUCKY INDUSTRIAL REVITALIZATION ACT: Tax credits are available to companies that rehabilitate a manufacturing or coalmining and processing operation that is in imminent danger of closing permanently or that have already closed temporarily. Approved projects may receive state income tax credits, corporation license tax credits and job assessment fees for 10 years limited to 75% of the cost for rehabilitation.
4. KENTUCKY ECONOMIC OPPORTUNITY ZONE PROGRAM: An economic development program to help new or expanding manufacturing or service/technology companies locate in areas of high unemployment and poverty. There may be only one opportunity zone per county. The designated opportunity zone must have KEDFA approval. The company is eligible for 100% income tax credit over a 10 year period.
5. KENTUCKY JOBS DEVELOPMENT ACT(KJDA): See Jobs Credits under Income/Franchise Tax Incentives and Credits.
INCENTIVES FOR ENERGY INDEPENDENCE ACT(IEIA): To qualify, a company must construct, retrofit or upgrade a facility to produce alternative sources of energy. |
| Eligibility Requirements: |
1. Eligible company must create a minimum of 15 jobs & the capital investment must exceed $100,000. The term of the agreement may not exceed 15 years. Project must occur in a KREDA designated county.
2. The company must make a minimum investment of $100,000 and create 15 new full-time jobs. The new employees must be subject to Kentucky state income tax.
3. Manufacturing firms that create or save 25 jobs and coal mining and processing companies that employ 500 people and have a base contract for annual delivery of at least 4 million tons of coal mined in the Commonwealth are eligible.
4. The company must locate in an approved opportunity zone and make a minimum $100,000 capital investment. 10 new full-time jobs must be created with those indiviuals subject the Kentucky income tax. The company must demonstrate that the project would not locate at the site without the tax credit. The project may not adversely impact another area of the state.
6. For most projects, company must invest at least $1,000,000. Period may last for 25 years and cover up to 50% of the capital investment; may also include sales and use tax refunds up to 100% of tangible personal property; 80% tax credit on severance coal. May also receive 100% tax credit against corporate tax liability and wage assessments up to 4% of gross wages of each employee. KEDFA negotiates the total incentive package.
For the investment incentives, a company must pay an hourly wage equal or greater tha 75% of the average hourly wage of the county or the state's hourly average wage. Base wage rate shall be 150% of the federal minimum wage level. Benefits must be 15% of the base hourly wage. |
| Geographic Restrictions: |
1,2&3 Statewide 4. Designated areas |
| Granting Authority: |
Kentucky Economic Development Finance Authority (KEDFA) |
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