Financial Incentives and Programs in East Kentucky

At One East Kentucky, we understand the importance of reduced capital investment on behalf of your project.  We will work to structure a mutually beneficial deal with the goal of reducing your initial investment to capitalize on profitability in the short-term.  Below are summaries of the most utilized local and state incentives.  Further details about Kentucky State Incentives and Programs can be found by clicking here.

Payroll Grant

Kentucky Business Investment (KBI) Program

This grant provides 5 percent of gross wages for up to 15 years for qualifying projects (10-plus new jobs, capital investment of at least $100,000, average wage of at least $9.06/hour plus benefits of an additional 15 percent)

Corporate Tax Rebate

Kentucky Business Investment (KBI) Program

This credit can provide up to 100 percent of corporate income or limited liability entity tax arising from a  project.  The company may collect up to 100 percent of initial investment over a 15 year period of time as a credit against state corporate taxes.

Sales & Use Tax Refund

Kentucky Enterprise Initiative Act (KEIA)

For new or expanding projects, KEIA provides 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.  KEIA is also available for Kentucky sales and use tax refunds for eligible equipment.

Free & Reduced Property

Real Estate Grants

We understand the need for your project to reduce start-up costs and are open to working on a mutually beneficial deal to get your project running and profitable as quickly as possible.   Local Government entities will consider low-cost or free lease/sale transactions on property, existing buildings and/or build-to-suit for qualifying projects based on the number of jobs, wages and total investment dollars.  These incentives are negotiable with Regional Industrial Development Authorities and Local Municipalities on publicly owned properties and are considered on a project-by-project basis.

Workforce/Cost of Labor Incentives

Workforce Training Incentives

By utilizing Kentucky’s College System, new industry may qualify for up to 100% of eligible training costs  associated with the hiring of new employees.  The KCTCS-Trains program offers customizable workforce  and industry training to relocating or expanding companies.  Additional workforce incentives and grants are available through the Bluegrass State Skills Corporation.

OJT Funding

Through our regional group, Eastern Kentucky Concentrated Employment Program (EKCEP), federal On-The-Job  Training Funds may be used to cover up to 50% of new employee wages for a period of up to six months.  This program provides significant payroll savings while putting our highly skilled laborers back into the workforce.  This program is considered on a case-by-case basis and is not guaranteed.

Loans & Bonds in East Kentucky

Direct Loan Program

The Kentucky Economic Development Finance Authority (KEDFA) encourages expansion and job creation by providing business loans to supplement other financing.  The Direct Loan Program provides loans at below-market interest rates for fixed asset financing for agribusiness, tourism, industrial ventures, or the service industry.

Industrial Revenue Bonds

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/processing projects.

Get Help Finding Incentives in Eastern Kentucky

The One East Kentucky team is ready to help your business secure incentives to make expansion projects viable. Get help finding incentives in East Kentucky today.

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EligibilityAn eligible organization must be a nonprofit entity, such as a city or county economic development organization, or a regional economic development organization. The organization must be in Kentucky Power’s