Time for Kentucky Small Business Tax Credit is running out for 2023 tax returns
FRANKFORT, Ky. (Sept. 13, 2023) – Today, Gov. Andy Beshear urged the owners of Kentucky’s small businesses, which help drive the state’s job growth and innovation, to apply for a tax credit of up to $25,000.
To ensure the best chance of approval in time for this year’s tax filings and receive the Kentucky Small Business Tax Credit, qualifying small businesses should apply now. Tax credits are available to eligible companies that added at least one net new full-time employee and invested $5,000 or more in qualifying equipment or technology within the past 24 months.
“The entrepreneurs running Kentucky’s small businesses are a major driving force behind our strong economy,” Gov. Beshear said. “This program rewards small businesses for continuing to invest in the commonwealth’s people and products, enabling more future growth for businesses and their communities – and now is the time to apply.”
“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 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 incentivized 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 its inception, the program has assisted in creating over 3,900 jobs and $40 million in new investments.
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. Other KY Innovation resources include programs providing access to credit, mentoring and advocacy. Entrepreneurs and small businesses are also encouraged to connect with the multiple resources available to them at the six regional KY Innovation hub offices statewide.
To learn more about this program and others offered by KY Innovation – and to access the current version of the KSBTC application – visit kytaxcredit.org, contact the Kentucky Cabinet for Economic Development at 1-800-626-2930, or email info@kyinnovation.com.
Information on Kentucky’s economic development efforts and programs is available at CED.ky.gov. People can also join the discussion at facebook.com/CEDkygov, on Twitter @CEDkygov, Instagram @CEDkygov and LinkedIn.