FRANKFORT, Ky. — Gov. Andy Beshear urged Kentucky’s small companies investing in our communities and creating jobs to use for a tax credit score of as much as $25,000.
To obtain the Kentucky Small Enterprise Tax Credit score, qualifying small companies ought to apply now to make sure their finest probability of approval in time for this 12 months’s tax filings. Tax credit can be found to eligible firms that added not less than one new full-time worker and invested $5,000 or extra in qualifying gear or know-how throughout the previous 24 months.
“We need to be sure our small enterprise house owners know that this program is accessible, and we remind them that it’s time to apply,” Gov. Beshear stated. “This program encourages our small companies to develop much more, which advantages their group and our nice state.”
“This tax credit score is one among our workplace’s most constant and efficient instruments for serving to companies at each stage of their journey. This system encompasses small companies concerned in such a broad spectrum of industries,” stated Monique Kuykendoll Quarterman, deputy government director of KY Innovation. “We like to see the businesses that rent immediately from our Kentucky communities. We encourage anybody who has added staff or invested in gear to think about making use of.”
Qualifying small companies could also be eligible to obtain a state earnings tax credit score starting from $3,500 to $25,000 per 12 months. The tax credit score quantity relies on the variety of jobs created and the quantity invested in new gear or know-how. Most for-profit companies with 50 or fewer full-time staff will qualify, together with building, manufacturing, retail, service and wholesale firms.
Bob Patterson, president of Patterson & Co. CPAs Pllc., has used this system as his firm has created jobs a number of instances since 2015.
“We’ve got been lucky to safe a number of Small Enterprise Tax Credit for gear purchases to help our new hires via the 11 years we’ve got been open,” stated Patterson. “This system could be very useful, straightforward to use for, and professionally and pretty administered.”
In 2021, this system incentivized the creation of 339 private-sector jobs and over $3.6 million in investments by 113 small companies. On common, every collaborating firm employed three individuals and acquired greater than $10,000 in tax financial savings. Since its inception, this system has assisted in creating over 3,400 jobs and $35 million in new investments.
The Kentucky Small Enterprise Tax Credit score is a signature program provided via KY Innovation, the cupboard’s workplace that encourages progress amongst Kentucky’s startups and small companies. Different KY Innovation assets embody packages offering entry to credit score, mentoring and advocacy. Entrepreneurs and startups can also join with a number of assets on the six regional KY Innovation Hub workplaces statewide.
Click on right here for extra Kentucky enterprise information.