Gov. Andy Beshear urged the owners of Kentucky’s small businesses, which help drive the state’s job growth and innovation, to apply for a tax credit of up to $25,000.
Qualifying small businesses should apply now to ensure the best chance of approval in time for this year’s tax filings and receive the Kentucky Small Business Tax Credit. Tax credits are available to eligible companies that added at least one net new full-time employee and invested $5,000 or more in qualifying equipment or technology within the past 24 months.
Qualifying small businesses may be eligible to receive a state income tax credit ranging from $3,500 to $25,000 per year. The tax credit amount depends on the number of jobs created and invested in new equipment or technology. Most for-profit businesses with 50 or fewer full-time employees will qualify, including construction, manufacturing, retail, service and wholesale companies.
In 2022, the program incentivized the creation of 402 private-sector jobs and over $3.56 million in investments by 138 small businesses. Each participating company hired approximately three people on average and received almost $10,000 in tax savings. Since its inception, the program has assisted in creating over 3,900 jobs and $40 million in new investments.
The Kentucky Small Business Tax Credit is a signature program offered through KY Innovation, the cabinet’s office that encourages growth among Kentucky’s small businesses and entrepreneurs. Other KY Innovation resources include programs providing access to credit, mentoring and advocacy. Entrepreneurs and small businesses are encouraged to connect with the multiple resources available at the six regional KY Innovation hub offices statewide.
Wondering if you qualify? Reach out to Ashmore Consulting to learn about the tax credits and incentives available to your business.
The information contained herein is general in nature and is not intended and should not be construed as legal, accounting, or tax advice or opinion provided by Ashmore Consulting LLC to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact Ashmore Consulting LLC or another tax professional prior to taking any action based upon this information. Ashmore Consulting LLC assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.