Applications received by Nov. 1 will be fully reviewed for consideration in 2024
FRANKFORT, Ky. (Sept. 5, 2024) – Today, Gov. Andy Beshear encouraged Kentucky’s small businesses creating jobs and investing in our communities to apply for a tax credit of up to $25,000 through the Kentucky Small Business Tax Credit (KSBTC).
To receive the Kentucky Small Business Tax Credit, qualifying small businesses should apply now to ensure their best chance of approval in time for this year’s tax filings. Although approval is not guaranteed, complete applications received by Nov. 1 will be fully reviewed for 2024 tax credit eligibility. Applications can be submitted at any time throughout the year, but applications received after Nov. 1 may not be eligible for tax credits until the 2025 tax year. 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.
“Kentucky’s economy is soaring, and our small businesses are a big reason why,” Gov. Beshear said. “The Small Business Tax Credit recognizes the investments entrepreneurs make in people and resources as they grow and position themselves for continued growth. That makes our communities and their economies even stronger. Now is the time to find out if you are eligible and may qualify for tax credits that can be claimed on your 2024 state tax return.”
“This tax credit is one of the best ways to not only support businesses that are adding jobs and investing in their own growth, but also to help them continue that momentum year after year as they build,” said David Brock, interim executive director of KY Innovation. “Many companies across the state likely don’t even know they are eligible based on their size, new hires they’ve made and previous purchases of qualifying equipment. Time is of the essence to apply for the credit in 2024, and we encourage any business owner, or those who assist businesses with accounting and tax preparation, to review program specifics on our website.”
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 having someone in your corner,” said Kyle Robinson, founder of Print My Threads LLC. “We make merchandise for brands all over the country, and some of the best brands in Eastern Kentucky. We’re buying from suppliers, investing in equipment, and hiring some of the best employees – all of that adds up, and 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, the brands that we help grow.”
This year alone, the KSBTC program has spurred small business owners to invest more than $2.1 million in their companies, awarding over $760,000 in tax credits and creating 222 new, Kentucky jobs. Since its inception, KSBTC has assisted in creating over 4,300 new jobs, generated more than $44 million in investments into small businesses and allocated over $14.7 million in total tax credits.
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 800-626-2930, or email info@kyinnovation.com.
Information on Kentucky’s economic development efforts and programs is available at CED.ky.gov. Fans of the Cabinet for Economic Development can also join the discussion at facebook.com/CEDkygov, on Twitter @CEDkygov, Instagram @CEDkygov and LinkedIn.
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