Gov. Beshear: KY small businesses can still apply for tax credits

HENDERSON, Ky. (WEHT) – Governor Andy Beshear encouraged Kentucky’s small businesses to apply for a tax credit of up to $25,000 through the Kentucky Small Business Tax Credit (KSBTC).

Officials say to receive the Kentucky Small Business Tax Credit, qualifying small businesses should apply now to ensure their best chance of approval in time for this year’s tax filings. Although approval is not guaranteed, complete applications received by November 1 will be fully reviewed for 2024 tax credit eligibility. 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 2025 tax year. 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.

“This tax credit is one of the best ways to not only support businesses that are adding jobs and investing in their own growth, but also to help them continue that momentum year after year as they build,” said David Brock, interim executive director of KY Innovation. “Many companies across the state likely don’t even know they are eligible based on their size, new hires they’ve made and previous purchases of qualifying equipment. Time is of the essence to apply for the credit in 2024, and we encourage any business owner, or those who assist businesses with accounting and tax preparation, to review program specifics on our website.”

Officials say qualifying small businesses may be eligible to receive a state income tax credit ranging 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.

According to officials, people can access the current version of the KSBTC application here , contact the Kentucky Cabinet for Economic Development at 800-626-2930 or email info@kyinnovation.com .

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