Manufacturing Incentives

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Kentucky Industrial Development Act (KIDA)

KIDA provides tax incentives to new or expanding manufacturing operations that invest at least $100,000 in the facility, employ at least 15 new full-time Kentucky residents and meet certain salary requirements.

Potential eligible costs include financing of land, buildings, site development, building fixtures and equipment associated with the project. The company must acquire the real estate through either transfer of title or a lease. Eligible equipment is limited to $20,000 in credits per new job created.

Benefits include:      - OR - Back to Top



Bluegrass State Skills Corporation (BSSC)

BSSC works with business and State educational institutions to establish training programs for specific companies and industries.

BSSC offers two programs that support training of workers in Kentucky's new and expanding industries as well as for upgrading the skills of workers in existing industries.

The Grant-in-Aid program allows companies to be reimbursed for 50% of their eligible costs for training Kentucky residents in job skills ranging from entry level to advanced - including pre-employment training for prospective employees and retraining, occupational upgrade and skills upgrade of existing employees. BSSC funds can be used for curriculum development, instructor fees, instructional materials and the purchase of training equipment.

The Skills Training Investment Credit program allows existing companies to recover 50% of approved costs for occupational and skills upgrade training through personal and corporation income tax credits. Qualified expenses include instruction costs, administrative fees, supply and equipment costs, facility leasing, and employee wages while in training.

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KCTCS KY WINS Training Grants

The Kentucky Community and Technical College Systerm (KCTCS) KY WINS program provides funding to companies who are willing to invest in their employees through a structured training program. Designated training experts at the KCTCS colleges work with companies to access these funds through a simple application process.

Currently, employers of new or expanding companies or who have the following training needs are eligible for KY WINS funds: KY WINS will KCTCS Colleges will Back to Top



Kentucky Economic Opportunity Zone (KEOZ)

Five census tracts that border Louisville's central business district have qualified as a Kentucky Economic Opportunity Zone (KEOZ). New or expanded manufacturing, service or technology industries may be eligible for KEOZ benefits if they invest at least $100,000 and create at least 10 new full-time jobs for residents of the zone.

Benefits include up to a 100% credit against their Kentucky income tax liability for up to 10 years.

Manufacturing businesses can recoup costs associated with land, buildings, site development, building fixtures and equipment. Service and technology businesses can recoup 50% of eligible relocation and start-up costs (up to $20,000 in eligible costs, or in other words, $10,000 in tax credits, per job created) and 50% of annual occupancy costs (or fair-market-value equivalent) of the facility.

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Kentucky Enterprise Initiative Act (KEIA)

The Kentucky Enterprise Initiative Act (KEIA) provides sales tax refunds to any business entity which is involved in a new or expanded service, technology, manufacturing, or tourism attraction activity in Kentucky.

The project must involve a minimum investment of $500,000.

Eligible investment costs include: A KEIA pre-approved company is eligible to receive a refund of sales and use tax paid for construction materials and building fixtures and for equipment used in research and development purchased during the life of the project. An approved company has 18 months from the date of approval to purchase materials eligible for refund.

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Kentucky Economic Development Finance Authority (KEDFA) Direct Loan Program

KEDFA provides loan funds to businesses at below market interest rates to supplement other financing in the range of $25,000 to $500,000. The loans are available for fixed asset financing (land, buildings, and equipment) for business startup, new locations and expansions that create new jobs in Kentucky or have a significant impact on the economic growth of a community. The loans must be used to finance projects in agribusiness, tourism, industrial ventures or the service industry. No retail projects are eligible. Project owners must inject a minimum of 10 percent towards the fixed assets. KEDFA loan funds are disbursed at the completion of the project, so the business must obtain interim financing. Back to Top



KEDFA Small Business Direct Loans

The Kentucky Economic Development Authority (KEDFA) Small Business Direct Loan Program is specifically geared to provide high risk loans to small businesses. KEDFA may provide terms that are more lenient, less secure, or otherwise less stringent than industry standards for loans that are generally considered higher risk. The loan proceeds may be used for acquisition, construction, expansion, working capital or any other business expense deemed reasonable by KEDFA. Back to Top



METCO Loan Programs

The Business Loan Program provides up to $100,000 in gap financing to small businesses at market rates. It is administered in conjunction with the Metro Business Development Corporation (METCO).

The Facade Loan Program is available to commercial property owners to revitalize neighborhood commercial corridors in Louisville. Facade loans are given for exterior property improvements, including window and door replacements, storefronts, masonry repair, siding, painting, carpentry, signage, parking and landscaping. Often, a professional architectural rendering is offered to a potential borrower to identify necessary building improvements.

Facade Loans are offered at a fixed interest rate of 3% over 10 years, making this an attractive program for revitalizing large target areas. Loans are made in conjunction with METCO and are typically secured with a lien on the improved property and the personal guarantee of the borrower.

For more information visit: http://www.louisville.ky.gov/MDA/economicdevelopment/businessdevelopment/

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Kentucky Industrial Revitalization Act (KIRA)

The Kentucky Industrial Revitalization Act (KIRA) provides tax incentives to manufacturing companies that are in imminent danger of permanently closing or that have temporarily closed, and retains or creates 25 jobs.

Companies may receive state income tax credits, Kentucky Corporation License Fee credits, and job assessment fees for up to 10 years limited to 75% of the costs of the rehabilitation or construction of buildings and the refurbishing or purchasing of machinery and equipment.

Benefits include the retention of up to 5% of the gross wages of the each new or retained employee whose job was saved or created by the project.

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Metro Brownfields Loan Program

The Brownfields Loan Program provides financing for economic development in older industrial areas. Companies that want to acquire, assess and remediate property for use or resale, or to construct and install buildings and fixtures for industrial use may be eligible. This loan program is applicable in the Kentucky Economic Opportunity Zone and is made in conjunction with the Metropolitan Business Development Corporation (METCO). It is collateralized by a mortgage on the subject property.

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Indiana Economic Development for a Growing Economy (EDGE)

Updated information coming soon.

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Kentucky Investment Fund Act (KIFA)

The Kentucky Investment Fund Act (KIFA) offers a 40% tax credit to certain personal and corporate investors - such as angel, seed and venture capital - in approved investment funds. Its purpose is to encourage capital investment in Kentucky, to encourage the establishment of small businesses in Kentucky, to provide additional jobs, and to encourage the development of new products and technologies in the state through capital investments.

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