In an effort to spur capital investment in startups and small businesses in Kentucky, the Cabinet for Economic Development recently announced the return of its Kentucky Angel Investment Tax Credit (KAITC) for 2021.
The program will begin accepting qualified investment applications on January 4 from investors for 2021 tax credits, and qualified investors and small businesses must apply for and receive certification prior to tax credit approval.
“Now more than ever, it’s essential we lift up Kentucky’s small businesses and support our state’s entrepreneurs with programs like the Angel Investment Tax Credit,” Gov. Andy Beshear said. “Startups are always a key economic engine, producing jobs and spurring innovation. During a time of economic recovery, these businesses are even more vital to creating a better Kentucky. This program invests in the people who help our economy grow and provide the job opportunities for Kentuckians throughout the commonwealth.”
Applications are being accepted for the 2021 calendar year. Investors and businesses are encouraged to begin the certification processes as soon as possible in order to ensure timely processing of application materials. Businesses and investors certified in previous years must re-apply for 2021 certification. Qualified investment applications are processed on a first-come, first-served basis.
The program allows angel investors – who provide important early stage funding for startups – to receive tax credits, incentives to invest in Kentucky’s small businesses. These investments help create additional jobs and promote the development of new products and technologies in Kentucky.
KY Innovation, the Kentucky Cabinet for Economic Development’s Office of Entrepreneurship, operates the program and recently held a webinar detailing KAITC’s return.
To view detailed guidelines for the 2021 Angel Investment Tax Credit Program or to apply for small business or angel investor certification, visit ced.ky.gov/KAITC.