FRANKFORT, Ky. (Oct. 29, 2015) – With the new year fast approaching, the Kentucky Cabinet for Economic Development wants to remind the Commonwealth’s small business owners they could be eligible for up to $25,000 in tax credits.
Small business owners who apply to the Kentucky Small Business Tax Credit program by Friday, Nov. 20, are eligible for approval in time for the tax credit to apply toward their 2015 tax returns. Applications submitted after Nov. 20 will be reflected on later tax returns.
“Small businesses continue to be a major focus in the Commonwealth,” said Gov. Steve Beshear. “We established this tax credit initiative with hopes of promoting small business growth and to help Kentucky companies reach their goals. We have already seen those hopes realized for several companies, but substantial funds remain to help additional small businesses in need of assistance.”
The state offers the tax credit to most for-profit businesses with 50 or fewer full-time employees, including retail, service, construction, manufacturing and wholesale.
A small business that created and maintained at least one qualifying job and purchased $5,000 or more in qualifying equipment within the last 24 months 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 cost of equipment purchased.
The tax credit was created in 2014 through the approval of KRS 154.60 and signed by Gov. Beshear.
“Small businesses create jobs all across Kentucky, in rural areas as well as small and big towns,” said Rep. Tanya Pullin, of South Shore, who sponsored the legislation. “Half of all working Kentuckians work for small businesses.”
Dozens of small businesses throughout the state have used the Kentucky Small Business Tax Credit. Brewco Marketing Group in Central City received the credit last year.
“Everyone involved made it easy, and the communication was outstanding,” said Shane Kennedy, president and general manager of Brewco Marketing Group. “They were very transparent about what the program was going to do for us. Just from ease of use and not taking time away from the employer, it was great.”
It’s simple to see if a business qualifies and to apply for the credit. Interested business owners should contact the Kentucky Cabinet for Economic Development at 800-626-2250, and its small business experts will walk owners through the process.
Kentucky boasts numerous success stories showcasing the state’s growth in entrepreneurism. According to the Wall Street Journal, Kentucky’s entrepreneurial growth is among the highest in the nation. Additionally, the Cabinet and the Kentucky Innovation Network received an Achievement in Innovation Hubs award from Business Facilities magazine. The award is given to the top programs in the nation that exhibit consistent excellence in developing innovation hubs and supporting entrepreneurs.
Learn more about the Kentucky Small Business Tax Credit at www.KentuckyTaxCredit.org.