TAXES:
The Commonwealth of Kentucky is becoming more competitive due to recent tax reform policies enacted
to stimulate investment and business growth. The repeal of the corporate license tax and the
intangible property tax, as well as a reduction in the corporate income tax rate from the current
8.25 percent to 6 percent by 2007 will continue to improve our current business tax structure.
Personal income taxes are also being reduced from 6 percent to 5.8 percent.
For a full overview of the major business taxes please refer to:
Business Taxes
INCENTIVES:
For over 15 years, Kentucky has been a national leader in offering significant tax incentives to both new and existing companies. Kentucky’s generous incentives were expanded further with the passage of the Kentucky Business Investment Act (KBI) in June 2009. Other existing programs were also enhanced at this time.
Benefits are available for all types of companies, including headquarters (regional & national), back-office, distribution & supply chain, manufacturing and research & development. Qualified companies may receive incentives for:
- Start-up costs of $20,000 per new employee.
- Occupancy cost reduction up to 50% for ten years. (leased facilities)
- Purchase of land, building, and site development. (company-owned facilities)
- Machinery and capital investment for new manufacturers.
- Reinvestment in existing Kentucky-based manufacturing facilities with no job creation requirements.
- Sales tax on building materials & non-manufacturing equipment. (Manufacturing Equipment has always been exempt from sales tax.)
- Sales tax on communication and data equipment.
- Upgrade skills training and education for existing and new employees.
Process
Applying for these benefits is a simple, straightforward process, and Greater Louisville Inc.’s economic development staff can help you determine your eligibility.
For personal assistance with incentives, contact our staff of
Client Solutions professionals via
email or
via phone at 502.625.0072.
