State and Local Business and Tax Incentives

Fuel your growth through tax incentives, education, financing, and loans

Eligible companies benefit from a variety of business incentives, including many programs from education and financing to state and local tax incentives. Northern Kentucky Tri-ED works directly with companies and consultants to create a customized approach to programs created to provide a competitive business environment for your new expansion or existing location.

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Entrepreneurship

New and Expanding Industry Business Tax Incentive Programs

Kentucky Business Investment (KBI) Program

Provides income tax incentives through credits and wage assessments to new and existing agribusinesses, regional and national headquarters, manufacturing companies, and non-retail service or technology related companies that locate or expand operations in Kentucky.

Industrial Revenue Bonds – IRB

IRBs issued by state and local governments in Kentucky can be used to finance manufacturing projects and their warehousing areas, major transportation and communication facilities, most health care facilities, and mineral extraction and processing projects.

Kentucky Economic Development Finance Authority (KEDFA) Direct Loan Program 

KEDFA encourages economic development, business expansion, and job creation by providing business loans to supplement other financing. The Direct Loan Program provides loans at below-market interest rates (subject to the availability of state revolving loan funds) for fixed asset financing for agribusiness, tourism, industrial ventures, or the service industry. Retail projects are not eligible.

Community Development Block Grants Loans (CDBG)

Federally funded low interest loans made available through the Kentucky Department for Local Government.

Kentucky Enterprise Initiative Act (KEIA) Tax Incentives

For new or expanded service or technology, manufacturing, or tourism attraction project in Kentucky. KEIA provides tax incentives in the form of a refund of Kentucky sales and use tax paid by approved companies for building and construction materials permanently incorporated as an improvement to real property. It is also available for Kentucky sales and use tax refunds for eligible equipment used for research and development and data processing equipment.

Job Retention Tax Incentive Programs

Kentucky Reinvestment Act (KRA)

Provides tax incentives in the form of credits to an existing Kentucky company engaged in manufacturing and related functions on a permanent basis for a reasonable period of time that will be investing in eligible equipment and related costs of at least $2,500,000.

Kentucky Industrial Revitalization Act (KIRA)

Investments in the rehabilitation of manufacturing or coal mining and processing operations that are in imminent danger of permanently closing or that have closed temporarily may qualify for tax credits. An eligible company shall also include one that has closed but resumes mining operations. Eligible entities include manufacturing companies that save or create 25 jobs and coal mining and processing companies that intend to employ a minimum of 500 persons and have a raw production of at least three million tons from the economic revitalization project facility.

Workforce Development Programs for Business Retention

Northern Kentucky incentivizes corporate and individual investments in workforce development.

Bluegrass State Skills Corporation Skills Training Investment Credit

Provides credit against Kentucky income tax to existing businesses that sponsor occupational or skills upgrades through workforce development training programs for the benefit of their employees.

Bluegrass State Skills Corporation Grant Reimbursement Program

Provides matching grant funds for customized business and industry-specific training programs.

Local Business Relocation Incentive Programs in Northern Kentucky

Northern Kentucky Tri-ED facilitates local government participation in tax incentives proposals for economic development projects. Coupled with state incentives for eligible companies, Northern Kentucky offers a low cost business environment perfect for your company’s next expansion. Business expansion and business incentives vary by municipality and may include:

  • A reduction of the Occupational License Fee (“payroll tax”) for firms that meet minimum job creation / payroll requirements
  • Property Assessment Moratoriums
  • Small business grants, such as facade improvement grants
  • TIF Districts
  • Northern Kentucky Tri-ED will work with you to model all applicable incentives, including tax incentives, based upon location, anticipated job creation, payroll and capital investment.

Tax Increment Financing Incentives Program

Tax Increment Financing (TIF) is an economic development tool to use future gains in taxes to finance the current improvements that will create those gains. The state participates with local governments and eligible agencies in three TIF tax incentives programs:

  • Real Property Ad Valorem Tax Revenues
  • Signature Projects
  • Mixed-Use Redevelopment in Blighted Urban Areas