Kentucky Small Business Tax Credit

The Kentucky Small Business Tax Credit (KSBTC) Program allows eligible small businesses paying taxes to apply for a Kentucky state income tax credit.  

You may be eligible!

Keep reading...

• Eligibility....most for-profit businesses with 50 or fewer full-time employees are eligible.

• Have you hired at least one new employee within the past 24 months AND invested at least $5,000 in new equipment or tecnology?

• Open to all industry segments including retail, service, construction, manufacturing, wholesale, and others.

• Tax credit amount range from $3500 to $25,000 per calendar year depending on number of eligible positions added and amount of qualifying equipment and technology investments.

• Tax credit applies to state tax return for the year it was awarded with a five year carry forward (and is non-refundable).

• Full-time eligible position = average at least 35 hours per week; on the company payroll for at least one year; average hourly wage at least $10.88 per hour; and subject to Kentucky income tax.

• Eligible positions must increase the number of full-time employees over the base number of full-time employees at the business in order to be awarded a tax credit.

• Qualifying Equipment and Technology = minimum $5000 total investment; purchased within six months before or after creating an eligible position; tangible property purchased by the business for use in the business; per-unit cost of $300 or more; expected useful life of more than one year; non-allowable costs such as rebates, refunds, tax, labor, installation, delivery, etc. are excluded.

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You may qualify and benefit!  Let us help you with the Kentucky Small Business Tax Credit process today!