KENTUCKY INCENTIVES SUMMARY

Kentucky Business Investment Program (KBI)
The KBI provides income tax credits and wage assessments to new and existing companies that locate or expand in Kentucky. Tax credits of up to 100 percent of corporate income tax or limited liability entity tax liability arising from the project for up to ten years, or 15 years in enhanced counties. Industries include agribusinesses, regional and national headquarters, manufacturing companies, alternative fuel, gasification, energy-efficient alternative fuels, renewable energy production companies, carbon dioxide transmission pipelines and non-retail service or technology related companies. Companies must create a minimum of ten new, full-time jobs and make a minimum capital investment of $100,000. Projects locating in certain counties may qualify for enhanced incentives.

Kentucky Enterprise Initiative Act (KEIA)
KEIA provides a refund of Kentucky sales and use tax paid by approved companies for building and construction materials of at least $500,000 in an economic development project. It is also available for Kentucky sales and use tax refunds for eligible equipment used for research and development, data processing equipment or flight simulation equipment. Eligible companies include those engaged in manufacturing, non-retail service or technology activities, agribusiness, headquarters operations, alternative fuel, gasification, energy-efficient alternative fuels, renewable energy production companies, carbon dioxide transmission pipelines, or tourism attraction project in Kentucky.

Kentucky Reinvestment Act (KRA)
Provides a tax credit to existing Kentucky manufacturers making a capital investment of at least $2,500,000 in a reinvestment project are eligible. Companies must commit to maintain a full-time employment base of at least 85 percent of the employment at the facility at the time of preliminary approval.

Kentucky Industrial Revitalization Act (KIRA)
Investments in the rehabilitation of manufacturing or coal mining and processing operations that are in imminent danger of permanently closing or that have closed temporarily may qualify for this tax credit. An eligible company shall also include one that has closed but resumes mining operations. Eligible entities include manufacturing companies that create or retain 25 jobs and coal mining and processing companies that intend to employ a minimum of 500 persons and have a raw production of at least three million tons from the economic revitalization project facility. The tax credit may be for up to 100 percent of the corporate income or limited liability entity tax liability arising from the project for up to ten years.

Bluegrass State Skills Corporation Skills Training Investment Credit
Provides credit against Kentucky income tax to existing businesses that sponsor occupational or skills upgrade training programs for the benefit of their employees.

Bluegrass State Skills Corporation Grant Reimbursement Program
Provides matching grant funds for customized business and industry-specific training programs.