On Monday, Governor Beshear announced the launch of the Kentucky Small Business Investment Credit (KSBIC) program, a program offering tax credits as incentive to prompt job creation in the Commonwealth. The program is part of the Chamber-supported Incentives for a New Kentucky (INK) legislation passed in a 2009 special legislative session.
As of January 1, 2011, most small businesses (defined as companies with 50 or fewer employees) will be eligible for tax credits ranging from $3,500 to $25,000 for the creation and maintenance of one or more new, eligible jobs and the investment of at least $5,000 in qualifying equipment or technology. Businesses may apply one year after meeting the job creation criteria previously mentioned and eligible hires and expenditures dating back to January 1, 2010 will meet program requirements.
The program does come with important limitations to note: KSBIC is subject to a statutory limit of awarding $3 million in state tax credits per fiscal year. Additionally, due to limited funds, not all small businesses that submit an application will be guaranteed the tax incentive. Applications will be scored and ranked based on criteria such as the number of jobs created, the amount of technology purchased from businesses physically located in Kentucky, the average base hourly wage for the eligible positition(s), etc. For a complete list of guidelines and application details, please visit www.thinkkentucky.com/KSBIC.