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 at least ten new, full-time jobs and make a minimum capital investment of $100,000. Projects located in certain counties may qualify for enhanced incentives.

Kentucky Enterprise Initiative Act (KEIA)
KEIA refunds 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 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 projects in Kentucky.

Kentucky Reinvestment Act (KRA)
This incentive program provides a tax credit to existing Kentucky manufacturers making capital investments of at least $2,500,000 in an owned facility and $1,000,000 in leased facilities(excludes rent). Companies must commit to maintaining a full-time employment base of at least 85 percent of the employment at the facility at the time of preliminary approval.

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.