Kentucky small businesses still have an opportunity to claim a tax credit of up to $25,000 on their 2016 taxes, but time is limited to apply for this year’s credit.
By applying for the Kentucky Small Business Tax Credit program by Nov. 1, small businesses stand the best chance of receiving approval in time for their 2016 tax filings. Tax credits are available for companies that, in the past 24 months, added least one new employee and invested $5,000 or more in qualifying equipment or technology.
The program, offered by the Kentucky Cabinet for Economic Development, encourages growth among the state’s small businesses.
“In cities and counties across Kentucky, small businesses provide employment and activity crucial to the state’s economic health,” said Erik Dunnigan, the Cabinet’s acting secretary. “With this program, the state helps leverage new hiring and reinvestment in equipment. This outstanding opportunity gives Kentucky’s small businesses additional flexibility in terms of revenue and payroll, which ultimately helps them succeed.”
The program is available to most for-profit businesses of 50 or fewer full-time employees, including companies in the construction, manufacturing, retail, service and wholesale industries.
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 varies based upon the number of jobs created and the cost of equipment purchased.
Last year, the program incentivized the creation of a record 364 private-sector jobs and $3.63 million in investments by 140 small businesses. On average, each participating company hired 2.6 people and received $8,856 in tax savings. Since inception, the program has assisted in creating more than 700 jobs and $8 million in new investments.
To learn more about the Kentucky Small Business Tax Credit program or to apply, visit www.KentuckyTaxCredit.org or contact the Kentucky Cabinet for Economic Development at 800-626-2930.