There is a tax credit of up to $25,000 available for small businesses in Kentucky: the Kentucky Small Business Tax Credit!
In order to make sure you qualify and get approved in time for this year’s tax filing and receive the tax credit, you need to apply NOW.
Tax credits are available for small businesses that added at least one net new full-time employee and invested $5,000 or more in qualifying equipment or technology within the last 2 years or 24 months.
“The Kentucky Small Business Tax Credit is an essential way to support businesses that are already growing and making an impact in their communities across the state,” said Monique Kuykendoll Quarterman, executive director of KY Innovation, the Kentucky Cabinet for Economic Development’s Office of Entrepreneurship and Innovation. “It is a highly effective tool for companies in a broad range of sectors making important contributions to Kentucky’s economy by hiring and investing in their business. We strongly encourage those who have filled new positions and invested in new equipment to learn more and apply now.”
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.
“As a small business, it really helps to have somebody in your corner,” said Kyle Robinson, founder of Print My Threads, located in Eastern Kentucky, Greenup County. “We’re buying from suppliers, investing in equipment and hiring some of the best employees. But all of that adds up, and so you have a lot of overhead. When we found out about the Kentucky Small Business Tax Credit, that made growing a lot easier; and when we grow, so do our partners.”
In 2022, the program motivated 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 it was created, the program has assisted in creating over 3,900 jobs and $40 million in new investments.
KY Innovation & SOAR
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 – AND a partner that helped create our SOAR Innovation Team!
We can help those just starting out on their entrepreneurship journeys get the essentials set up with the least amount of time and money. Reach out to your SOAR Innovation rep today to get started with any one of these six services.
Another invitation that we are extending is for entrepreneurs and small businesses to attend the 2023 SOAR Summit – there, you can connect with other small businesses, hear from Kyl Robinson (the small business owner who was mentioned above) who will be participating in TenTalk , connect with our SOAR Innovation Team, and network with those who can provide resources to help you grow!Register today HERE.