According to the Kentucky Cabinet for Economic Development, 96.5% of the businesses in the state of Kentucky are small businesses, employing nearly 700,000 Kentuckians.
What is this credit that thousands of businesses are not taking advantage of?
The driving force behind the KSBTC is job creation. When a business creates or fills one or more eligible positions and invests $5,000 or more in qualifying equipment or technology, the program provides a credit between $3,500 to $25,000 per calendar year. This credit is available to for-profit businesses having 50 or less full-time Kentucky employees. It is important to note that an employee who works in Kentucky, but resides outside of the state, is not included in the small business employment calculation. Thus if a business has 60 employees, but 20 of them reside outside the state of Kentucky, the business is still eligible for the credit.
Other program requirements include the following:
At least one position has been created and filled for 12 consecutive months; the employee must work a minimum of 35 hours or more per week and have an hourly wage of at least $10.88.
The investment of $5,000 in qualifying equipment or technology; defined as a life greater than one year (i.e. computers, equipment, furniture, fixtures and software).
The Kentucky Cabinet will work with businesses to assist in credit approval. If you have questions as to whether or not your business qualifies for the credit, please contact Ryan Redleski at (859) 331-3300.