Included $3.63M in investments by 140 small businesses
FRANKFORT, Ky. (June 21, 2016) — Last year the Kentucky Small Businesses Tax Credit (KSBTC) program assisted in the creation of a record 364 private-sector jobs and $3.63 million in investments by 140 small businesses. On average, each participating company hired 2.6 people and received $8,856 in tax savings. Since inception, KSBTC has assisted in the creation of 630 jobs and $6.7 million in new investments.
“Small businesses are a cornerstone of Kentucky’s employment. Their growth and success is crucial to the commonwealth’s economy overall,” said Erik Dunnigan, acting secretary of the Kentucky Cabinet for Economic Development’s Office of Entrepreneurship. “This program ultimately reduces the costs for companies to do business in Kentucky. By putting revenue back into small businesses for their hiring and investments, the program improves cash flow and puts them in better positions to compete and succeed.”
To qualify for tax credits between $3,500 and $25,000 per year, a small business must employ 50 or fewer people full-time. Businesses must have created and maintained at least one full-time job at $10.88 per hour or more for at least 12 months and purchased $5,000 or more in qualifying equipment within the last 24 months. The tax credit amount varies based on the number of jobs created and the amount invested in equipment.
For-profit companies in various industries including retail, service, construction, manufacturing and wholesale, can apply.
KSBTC is one of multiple programs the Cabinet’s Office of Entrepreneurship operates to encourage growth among the state’s startups and small businesses. Program guidelines and application forms are available at www.KentuckyTaxCredit.org or by calling the Office of Entrepreneurship at 800-626-2250.
Other Office of Entrepreneurship resources include programs providing assistance for international trade and market development, access to credit, mentoring and advocacy. As well, through its Kentucky Innovation Network, entrepreneurs and startups can connect with multiple resources at offices statewide. Learn more about the Office of Entrepreneurship here.