Service & Technology Incentives

Click on the links for more details:

Will your investment include a minimum of 15 new employees within 2 years and is 75% (or more) of your revenue generated outside KY? KJDA
Do have training expenses for existing employees? BSSC and KCTCS KY Wins Training Grants
Are you considering an inner-city redevelopment area? KEOZ
Are you making building improvements or investing in R&D? KEIA
Do you need gap financing? METCO Loan Programs
Do you have fewer than 50 employees and need funding for growth? KEDFA Small Business Loan
Are you considering an Indiana location? Indiana EDGE
Do you manage an investment fund? KIFA

Kentucky Jobs Development Act (KJDA)

The Kentucky Jobs Development Act (KJDA) provides tax incentives to new or expanding service and technology-based companies that earn at least 75% of their revenues from outside the state, employ at least 15 new full-time Kentucky residents and meet certain salary requirements.

This tax credit program enables the company to recoup 50% of annual occupancy costs (or fair-market-value equivalent if owned) of the facility for up to 10 years and 50% of eligible start-up cost expenditures up to $20,000 per job created (maximum start-up credits of $10,000 per job).

Benefits include:

A 100% credit against the state corporate income tax arising from the project.

- AND -

The retention up to 5% of the gross wages of the new employment generated by the project as a credit against state and local occupational taxes.

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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:

"High end" Information Technology training
Lean Manufacturing
WorkKeys system for job analysis, assessment and targeted instruction
Kentucky Manufacturing Skill Standards assessment and training
Training that leads to a credential or certification.

KY WINS will

Pay the companies share, up to 65%, for KCTCS courses
Invoice companies for up to 35% of the cost

KCTCS Colleges will

Customize courses for companies who can meet minimum class size
Consult with companies to identify training plans for employees
Identify other companies to form partnerships to meet minimum class size
Provide training on-site if equipment required for the course is available
Subcontract with qualified instructors
Build curriculum when necessary

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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:

Expenditures for research and development equipment,
Acquisition of real property, building, and
Construction materials, construction, installation, and rehabilitation of fixtures and facilities, necessary or desirable for improvement of real estate owned, used, or occupied by the approved company.

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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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.

Small business with 50 or fewer employees are eligible.
The maximum loan amount under the program is $100,000.
At least one new full-time job must be created and maintained throughout the term of the loan.

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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/business development/

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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.