Secretariat

U.S. State Programs for New Investments

Available Investment Programs

Kentucky

Taxes

• The Kentucky Industrial Development Act provides up to 100% tax credits for up to 10 years on capital investments by new and expanding manufacturing companies - in lieu, the company may elect to collect a job assessment fee of 3% of the gross salary of each new employee resulting from the approved project.
• In counties with unemployment rates above the State average, companies can take advantage of the Kentucky Rural Economic Development Act whereby they are granted a tax credit of up to 100% against their state income tax base on approved project costs - the length of the tax credit is 15 years or for the duration of the financing term.
• Sales and use taxes are waived on machinery for new or expanding companies and on pollution control equipment.
• Manufacturing machinery and pollution control equipment are exempt from local property tax but are subject to a state tax of US$0.15 per $100 of assessed value.
• An unemployment tax credit in the amount of US$100 per each new employee is available if the company hires individuals who have been on unemployment for 60 days or longer.
• Bluegrass State Skills Program has established a Corporation Training Investment Credit for companies that sponsor occupational skills upgrade training programs for their employees - the credits are limited to US$500 per employee and US$100,000 company wide per year.

Employee Training

• The Department of Employment Services offers screening, recruitment, and referral services to companies at no cost to employers or employees.
• The Office of Development and Industry Relations, an office of the Workforce Development Cabinet, acts as a one stop broker for industry specific and customized training, screening, and employee assessment.
• The Bluegrass State Skills Corporation Grant Reimbursement Program provides matching grant funds for customized business and industry specific training programs - this includes covering costs associated with tuition fees, training consultants, curriculum development, instructional materials, training equipment, and travel costs for training purposes.

Financing

• A direct loan program provides companies with below market interest rate loans for fixed asset financing.
• Manufacturing projects can be financed by Industrial Revenue Bonds issued by state and local governments.

Other

• Electric and gas utility companies offer decreased utility rates for qualifying large industrial customers - these special discounted rates are granted for a period up to 5 years and are available to new and expanding companies.

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