Kentucky · Modernization · KY-KRA-001
Kentucky Reinvestment Act Credit
Publication revised September 24, 2026. Sourcebook page 123.
Credit amount / calculation
Credit against corporate income/limited liability entity tax tied to approved eligible costs and retention/investment commitments.
Business fit and eligible activity
Existing manufacturers can receive credits for qualifying reinvestment/modernization projects. Qualified investment or approved project activity; confirm eligible property, location and taxpayer type.
Illustrative business benefit
A sawmill is replacing a headrig and adding scanning, material handling, and electrical controls in a project of roughly $2 million. The credit calculation would be based only on the costs the program recognizes as qualified investment. Before issuing purchase orders, the mill should obtain a written view on whether installation, electrical work, used equipment, and software are included.
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.
Official sources
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