702-871-8678
According to The North American Business Cost Review, Kentucky continues to offer the lowest overall cost of doing business in the eastern United States. The survey, which measures the cost of doing business within a state in terms of state and local taxes, the energy index, unit labor cost, and overall costs, determined Kentucky to have the lowest overall cost of doing business when compared to other states within the region. Additionally, Kentucky offers several major incentive programs to companies choosing to do business in Kentucky. Here are a few:
The Kentucky Jobs Development Act (KJDA) is a tax credit program for new or expanding non-manufacturing and non-retail projects. Office, technology, research and development, service, and warehouse projects may apply for the program as well. Projects must create a minimum of 15 new jobs for Kentucky residents. Additionally, 75% of a facility’s services must be created for out-of-state customers. Approved projects receive state corporate income tax credits and job assessment fees for up to 50% of annual rental costs and 50% of project startup costs for up to 10 years. Also, the company receives a 100% credit against state corporate income taxes arising from the approved project.
The Kentucky Industrial Development Act (KIDA) is a tax credit program for new or expanding manufacturing projects. The project must create a minimum of 15 new jobs and have a minimum investment of $100,000. Approved projects choose either to receive a 100% state corporate income tax credit for 10 years or a job assessment fee of 3% of the gross wages of each Kentucky resident employee whose job is created by the project.
Finally, the KEDFA Direct Loan Program is a mortgage loan program available to businesses to supplement other financing. Loans available for fixed asset financing (land, buildings and equipment) for business startup, locations, and expansions. Projects financed must be in agribusiness, tourism, industrial ventures, or the service industry. No retail projects are available. Loans range from $25,000 up to the maximum of $500,000.
For more information on doing business in Kentucky, or Incorporation visit us at IncPardise.com or call at 888-284-3821
