Kentucky Tax Credit Money available to small businesses
The Kentucky Small Business Tax Credit Program (KSBTC) offers small businesses a tax credit if they qualify. The state recently announced this new program. It's designed to help small businesses reduce the amount of state income taxes they pay if they invest in new or used equipment and hire at least one new worker.
Here's how it works. If you own a company which has 50 or fewer employees, you invest at least $5,000 in new equipment and hire at least one employee averaging at least $10.88 per hour. Businesses can apply for a tax credit which could reduce their state income taxes for that year by $3,500 per new full time job they create. Depending on the total amount of the equipment investment and number of employees hired, small businesses could have a tax savings of $3,500 to $25,000 per calendar year.
Here's an example: if a small businesses buys new office equipment or machinery totaling at least $7,000 and hire two new full time workers, the state could reduce their state income taxes for that year by $7,000; $3,500 X 2. The best part; if for some reason you do not owe $7,000 in state income taxes that year, the business can carryover the unused portion of the credit to the next year. That's real money in the small businesses pocket and all they have to do to get it is invest a minimum of $5,000 in equipment and hire one or more employees making an average of $10.88 per hour.
Small business applicants that meet the program requirements have 90 days after the eligibility date to apply and one year to be approved for a tax credit.
The tax credit is available to all businesses including retail, service, construction, manufacturing and wholesale.
Small business owners can learn more about the program and see if they can qualify, visit www.thinkkentucky.com/ksbtc for the application or contact Bill Mitchell, Pendleton County Economic Development Director at (859) 654-4567 or firstname.lastname@example.org.