Small-business tax credits still available in Kentucky
Published 3:41 pm Monday, October 3, 2022
Gov. Andy Beshear is reminding Kentucky’s small businesses investing in communities and creating jobs to apply soon for a tax credit of up to $25,000, as time is running out to be able to claim it on their 2022 tax return.
Tax credits are available to eligible companies that added at least one new full-time employee and invested $5,000 or more in qualifying equipment or technology within the past 24 months.
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“We want to make sure our small business owners know that this program is available, and we remind them that it is time to apply,” Beshear said. “This program encourages our small businesses to grow even more, which benefits their community and our great state.”
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 the amount 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.
“This tax credit is one of our office’s most consistent and effective tools for helping businesses at every stage of their journey. The program encompasses small businesses involved in such a broad spectrum of industries,” said Monique Kuykendoll Quarterman, deputy executive director of KY Innovation, which oversees the program. “We love to see the companies that hire directly from our Kentucky communities. We encourage anyone who has added employees or invested in equipment to consider applying.”
In 2021, the program incentivized the creation of 339 private-sector jobs and over $3.6 million in investments by 113 small businesses. On average, each participating company hired three people and received more than $10,000 in tax savings. Since its inception, the program has assisted in creating over 3,400 jobs and $35 million in new investments.
To find out more, go to ced.ky.gov/Entrepreneurship/KSBTC, contact the Kentucky Cabinet for Economic Development at 800-626-2930, or email firstname.lastname@example.org.