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Incentives

Performance-driven support

South Central Kentucky sets the pace for site selection, job creation and business investment by assuring that our client companies locating or expanding here receive maximum support from local, regional and state inventive programs.  Whether it’s navigating state-level incentives that can directly offset or reduce the practical costs of locating and expanding your business, establishing partnership with local jurisdictions of government to facilitate infrastructure improvements, negotiating permits and fees on your behalf, or qualifying you for loans and grants, the team at South Central Kentucky will bring all the powerful incentives available bear upon your specific situation:

New and Expanding Industry

  • Kentucky Business Investment (KBI) Program – (PDF)
    Provides income tax credits and wage assessments to new and existing agribusinesses, regional and national headquarters, manufacturing companies, and non-retail service or technology related companies that locate or expand operations in Kentucky. Projects locating in certain counties may qualify for enhanced incentives. Click here to view a map of the enhanced incentive counties.
  • Kentucky Enterprise Initiative Act (KEIA)(PDF)
    For new or expanded service or technology, manufacturing, or tourism attraction project in Kentucky. KEIA provides a refund of Kentucky sales and use tax paid by approved companies for building and construction materials permanently incorporated as an improvement to real property. It is also available for Kentucky sales and use tax refunds for eligible equipment used for research and development and data processing equipment.
  • Direct Loan Program (KEDFA) (PDF)
    KEDFA encourages economic development business expansion and job creation by providing business loans to supplement other financing. The Direct Loan Program provides loans at below-market interest rates (subject to the availability of state revolving loan funds) for fixed asset financing for agribusiness, tourism, industrial ventures, or the service industry. Retail projects are not eligible.
  • Industrial Revenue Bonds - IRB (PDF)
    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. Click here for the IRB Procedures.
  • Community Development Block Grants Loans - CDBG
    Federally funded low interest loans made available through the Department for Local Government.

Job Retention

  • Kentucky Reinvestment Act (KRA) - (PDF)
    Provides tax credits to an existing Kentucky company engaged in manufacturing and related functions on a permanent basis for a reasonable period of time that will be investing in eligible equipment and related costs of at least $2,500,000.
  • Kentucky Industrial Revitalization Act (KIRA) PDF
    Investments in the rehabilitation of manufacturing or coal mining and processing operations that are in imminent danger of permanently closing or that have closed temporarily may qualify for tax credits. An eligible company shall also include one that has closed but resumes mining operations. Eligible entities include manufacturing companies that save or create 25 jobs and coal mining and processing companies that intend to employ a minimum of 500 persons and have a raw production of at least three million tons from the economic revitalization project facility.

Considerable job creation incentives offered by the Kentucky Cabinet for Economic Development and the Kentucky Economic Development Finance Authority may be only the beginning.  Direct loan programs, property tax abatements, local bond issuance, and infrastructure costs are among many other valuable tools in the South Central Kentucky suite of incentives that may be available to your business.

When it comes time to hire and train your new South Central Kentucky employees, we provide significant, additional skills training programs and tax credits that save our businesses time and money commencing operations here:

 

For a comprehensive opportunity analysis tailored to your business, contact Ron Bunch, CEcD, at South Central Kentucky: ron@southcentralky.com – Toll free: (866) 330-2422, or (270) 781-3200.