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State Financial Incentives |
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Bluegrass State Skills
Corporation (BSSC) |
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BSSC,
and independent quasi-public corporation within the Cabinet for
Economic Development, provides grants for customized skills training
of workers for new and expanding business in Kentucky. Grants are
awarded for portions of an employer’s cost of training Kentucky
residents in job skills ranging from entry level to advanced,
including retraining and skills upgrading of existing employees.
BSSC works with other employment, job training resources, and
financial incentive agencies to design a training program customized
to meet the specific needs of a company.
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Kentucky Jobs Development
Act (KJDA) |
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KJDA
provides tax credits for new and expanded non-manufacturing projects
that provide at least 75% of their services to customers outside of
Kentucky and that create at least 25 new full-time jobs for Kentucky
residents. Companies with approved projects receive state income tax
credits and job assessment fees for up to 50% of project start-up
costs and 50% of annual facility rental cost or rental value for up
to 10 years. The company may collect a job assessment fee of up to
5.0% of the gross wages each employee whose job is created by the
project and who is subject to Kentucky income taxes. The employee
receives credits for the fee against withheld state income taxes and
occupational taxes.
KJDA
charges a closing fee of 0.1% of approved costs. Additionally,
projects approved pay an annual fee equal to 5% of the total KJDA
tax credits and wage assessments taken for the previous year, for a
state research fund. |
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Industrial Revenue Bond (IRB) |
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IRBs
issued by state and local governments in Kentucky can be used to
finance manufacturing projects and their warehousing areas, major
transportation and communication facilities, most health care
facilities, and mineral extraction and processing projects. Bond
funds may be used to finance the total project costs including
engineering, site preparation, land, buildings, machinery and
equipment, and bond issuance costs. Property financed by IRBs and
owned by a governmental unit is exempt from all state and local
property taxes, except for a nominal state leasehold tax of $0.015
per $100 of leasehold value. Some local governments may negotiate
for payments in-lieu-of property taxes not collected on IRB financed
projects. Kentucky law also allows the borrower to retain ownership
of the property financed with bonds. Property in this case is
subject to full state and local property taxes. |
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Kentucky Economic
Development Finance Authority (KEDFA) |
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Financing of fixed assets is available through Kentucky Economic
Development Finance Authority (KEDFA). The Authority may participate
in financing of qualified projects with a secured loan of up to
$10,000 per job created, not to exceed $500,000 or 25% of the
project cost, whichever is less. These funds may be used to assist
in the purchase of land, the purchase of existing buildings, new
construction, or the purchase of equipment. The interest rate is
fixed for the life of the loan, and is determined by the length of
term. A ten-year loan bears an interest rate of 5.0%, while the rate
on a three-year not is 1.0%, with bond rates based on a monthly
payment schedule.
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Southern Kentucky
Economic Development Corporation (SKEDC) |
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Financing of fixed assets is available through the Southern Kentucky
Economic Development Corporation (SKEDC). SKEDC may participate in
financing of qualified projects with a secured loan of up to $10,000
per new job created, not to exceed $150,000 or 25% of the project
cost, whichever is less. These funds may be used to assist in the
purchase of land, the purchase of existing buildings, new
construction, or the purchase of equipment. The interest rate is
fixed for the life of the loan, and is determined by the length of
the loan. |
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