About this programme
The Kentucky Small Business Tax Credit Program (KSBTC), run by the Office of Entrepreneurship within the Kentucky Cabinet for Economic Development, rewards small businesses that create jobs and invest in equipment or technology with a nonrefundable state tax credit.
It is open to nearly all industry segments, including retail and service businesses, and is aimed at businesses with 50 or fewer full-time employees. Since it launched, the program has driven 5,162 new jobs, $53.7 million in company investment, and $17.4 million in tax credits earned, with an average credit of $14,870 per company.
Who can apply
Most businesses with 50 or fewer full-time employees are eligible, across nearly all industries.
The business must have hired and sustained at least one new job within the last year; the new employee must have been on payroll for at least one year and must earn at least $10.88 per hour.
The business must have purchased at least $5,000 in qualifying equipment or technology.
How to apply
- Review the KSBTC Fact Sheet, Guidelines, and the "10 Things to Know" document available from the Cabinet for Economic Development.
- Complete the KSBTC Application form.
- Provide all required supporting documentation listed within the application.
Frequently asked
How much is the credit worth?
Between $3,500 and $25,000 per year, depending on the jobs created and the investment made.
What job requirement do I need to meet?
You must have hired and sustained at least one new job in the last year, with that employee on payroll for at least a year and earning at least $10.88 an hour.
What counts toward the equipment investment requirement?
You must have purchased at least $5,000 in qualifying equipment or technology.
Is my business too small or the wrong industry to qualify?
The program is open to nearly all industry segments, including retail and service, and most businesses with 50 or fewer full-time employees are eligible.
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Reviewed 2026-09-25. Programmes change, so check eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private firm and is not part of any government body.