Kentucky officials are encouraging small businesses to apply for a tax credit of up to $25,000 through the Kentucky Small Business Tax Credit (KDBTC).
“To receive the KSBTC, qualifying small businesses should apply now to ensure their best chance of approval in time for this year’s tax filings,” the governor’s office said. “Although approval is not guaranteed, complete applications received by November 1 will be fully reviewed for 2025 tax-credit eligibility.”
“Tax credits are available to eligible companies that added at least one net new full-time employee and invested $5,000 or more in qualifying equipment or technology within the past 24 months,” according to the governor’s office.
Qualifying small businesses may be eligible to receive a state income tax credit ranging anywhere from $3,500 to $25,000 per year. The tax credit amount depends on the number of jobs created and the amount invested in new equipment or technology. Most for-profit businesses with 50 or fewer full-time employees will qualify, including construction, manufacturing, retail, service, and wholesale companies.
Applications can be submitted at any time throughout the year, but applications received after November 1 may not be eligible for tax credits until the 2026 tax year.
To learn more about this program, and to access the current version of the KSBTC application, visit kytaxcredit.org, contact the Kentucky Cabinet for Economic Development at 800-626-2930, or email info@kyinnovation.com.
(Photo courtesy of blueandco.com)
By Ken Howlett, News Director
Contact Ken at ken@k105.com
