Kentucky's pro-business climate provides a number of incentives for businesses that will lower the cost of doing businesses for companies that choose to locate or expand in Kentucky. Helping businesses in this way furthers Kentucky’s goals of achieving long-term economic growth and employment opportunities for its citizens. Kentucky offers a variety of tax incentives and other financial enhancements for growing businesses.
Below you will find a synopsis of several of the more popular programs that are used to assist growing companies. Cabinet representatives will be happy to personally discuss your specific needs and then recommend options that are best suited for your growth needs.
- Kentucky Business Investment (KBI) Program
Provides income tax credits and wage assessments to new and expanding agribusinesses, regional and national headquarters, manufacturing companies, and non-retail service or technology related companies creating new jobs and investment in Kentucky.
- Kentucky Enterprise Initiative Act (KEIA)
For new or expanding service or technology, manufacturing, or tourism-attraction projects in Kentucky. 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. It is also available for Kentucky sales and use tax refunds for eligible equipment used for research and development and data processing equipment.
- Kentucky Reinvestment Act (KRA)
Provides tax credits to an existing Kentucky company engaged in manufacturing and related functions on a permanent basis for a reasonable period of time. Tax credits will be made available to those companies that will be investing in eligible equipment and related costs.
- Industrial Revenue Bonds - IRB
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 and processing projects.