Kentucky · Economic Development · KY-KBI-001
Kentucky Business Investment Credit
Publication revised September 24, 2026. Sourcebook page 122.
Credit amount / calculation
Project-specific approved tax credits and wage assessments tied to eligible costs and new employment.
Business fit and eligible activity
New or expanding manufacturers can receive negotiated income/limited are met. Qualified investment or approved project activity; confirm eligible property, location and taxpayer type.
Eligibility and practical use
The credit is worth screening because it reaches a business activity that occurs regularly in forest products, even though the program is not written specifically for the industry.
Illustrative business benefit
Use-of-credit illustration, not an estimated award: assume the agency or completed tax form establishes a $1,000 credit for the qualifying activity described above. If sufficient eligible tax is due, a $1,000 credit available for current use reduces that tax by $1,000. If annual limits allow only $600, that is this year's saving; the other $400 survives only if the carryforward or transfer rules permit. Obtain the actual program calculation before estimating a project benefit.
Timing / first action
Seek approval before starting the overall project, including site work or construction. Contact the administering agency and secure the required approval before the project is publicly or contractually committed. liability entity tax credits when job, wage and investment requirements
Official sources
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