The Kentucky Small Business Investment Credit (KSBIC) program, part of the Governor’s Incentives for a New Kentucky (INK) legislation designed to spur job creation, is now accepting applications.
The program provides state income tax credits ranging from $3,500 to $25,000 per eligible small business that creates, fills and maintains one or more new, eligible jobs and invests at least $5,000 in qualifying equipment or technology.
With certain exceptions, most for-profit small businesses with 50 or fewer employees are considered eligible for the program.
Businesses may apply one year after the latter of creating and maintaining at least one new eligible job and purchasing $5,000 or more in qualifying equipment or technology. (Eligible hires and qualifying equipment and technology purchases dating back to Jan. 1, 2010, will meet program requirements.)
All eligible applications will be scored and ranked, with the highest ranked applications submitted to the Kentucky Economic Development Finance Authority for approval.
In addition to meeting the required program criteria, other factors that will increase an applicant’s score include: the amount of qualifying equipment or technology purchased from businesses physically located in Kentucky; the average base hourly wage for the eligible position(s); the number of eligible position(s) created and filled in enhanced counties; and having not been previously approved for a tax credit under the program.