As a small business owner, you want to take advantage of all of the possible opportunities for saving money. Luckily, there is a way here in Kentucky to save money on your taxes through the Kentucky Small Business Tax Credit (KSBTC). This incentive may give your company a tax break between $3,500 to $25,000 a year depending on the jobs created and the investment made on equipment.

The two main requirements for this specific tax credit are that you must have hired and sustained at least one new role, and purchased at least $5,000 in qualifying technology or equipment. 

The technology must be purchased within the 24-month period before submitting an application. Qualifying equipment is considered tangible property purchased by the applicant business for use in the business in Kentucky (not for resale or personal use), with an expected useful life of one year or more and approved by the Office of Entrepreneurship. 

You may be eligible if: 

-you have 50 or fewer full-time employees (35 hours per week or more).

-you part of one of most industries that are involved including retail and service.

-the new employee earns at least $10.88 an hour and has been on the payroll for at least a year.

If you are a small business owner and meet the requirements, we encourage you to apply to this program. Applications must be submitted within two years after the first program requirement is fulfilled (e.g. hiring a full-time employee, purchasing new equipment). This tax credit applies to the state tax return for the year it was awarded.

Let us know if this is something that you would be interested in and would like to learn more about, and we will be happy to discuss this option with you. To schedule a free consultation with us, fill out a contact form today.