Incentives
The Russell County Industrial Development Authority has the expertise to work with new or expanding businesses that are seeking a new location. We are committed to helping you build a successful business venture.
Russell County’s and Kentucky's pro business climate provides a number of incentives for businesses. The Kentucky Economic Development Finance Authority (KEDFA) was established within the Cabinet for Economic Development to encourage economic development, business expansion, and job creation by providing financial support through an array of financial assistance and tax credit programs. Helping businesses in this way furthers the Commonwealth’s goals of achieving long-term economic growth and full employment for its citizens.
New and Expanding Industry
Kentucky Business Investment (KBI) Program – (PDF)
Provides income tax 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. Projects locating in certain
counties may qualify for enhanced incentives. Russell County is an enhanced incentive county.
Kentucky Enterprise Initiative Act (KEIA)(PDF)
For new or expanded service or technology, manufacturing, or tourism
attraction project in Kentucky. 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. It
is also available for Kentucky sales and use tax refunds for eligible
equipment used for research and development and data processing equipment.
Direct Loan Program (KEDFA) (PDF)
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 Department
for Local Government.
Kentucky Enterprise Fund and Rural Innovation Fund
The Kentucky Enterprise Fund and the Rural Innovation Fund provide
seed-stage capital to Kentucky-based companies that are commercializing a
technology-based product or process. The funds exist to stimulate private
investment in Kentucky-based technology companies with high growth
potential. The Kentucky Science and Technology Corporation administers the
funds under contract with the Council on Postsecondary Education.
Small Business
Kentucky Small Business Credit Initiative (KSBCI)
Designed to generate jobs and increase the availability of credit by
reducing the risks participating lenders assume when making loans to small
businesses. Using three distinct credit enhancement programs, KSBCI will
help lenders finance creditworthy small businesses that would typically
fall just outside of their normal lending guidelines. Please click here for a listing of approved projects.
Small Business Loan Program (PDF)
The Small Business Loan Program is designed to help small businesses
acquire funding needed to start or grow their small business. A small
business must be engaged in manufacturing, agribusiness, or service and
technology. Loan funds may be used to acquire land and buildings, purchase
and install equipment, or for working capital. The minimum loan amount is
$15,000 and the maximum is $100,000. The approved company must create one
new full-time job within one year of the loan closing. KEDFA can fund up
to 100 percent of the project costs and the loan can be used in
conjunction with other lenders. The term of the loan can range from 3-10
years.
The Kentucky Small Business Tax Credit (KSBTC)
The KSBTC program is designed to encourage small business growth and job
creation by providing a nonrefundable tax credit to eligible businesses
hiring one or more eligible individuals and investing at least $5,000 in
qualifying equipment or technology. With certain exceptions, most
for-profit businesses with 50 or fewer full-time employees are considered
eligible for this program. The KSBTC program is limited to allocating a
total of $3 million in tax credits per state fiscal year.
U.S. Small Business Administration
Federal agency that provides a number of guaranteed loan and other
financial assistance programs to small businesses.
Workforce Training
Bluegrass State Skills Corporation Skills Training Investment Credit
Provides credit against Kentucky income tax to existing businesses that sponsor
occupational or skills upgrade 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.
Summary of Kentucky Business Incentives
The Kentucky Cabinet for Economic Development
provides financial support through an array of financial assistance and tax
credit programs. To learn more about how Kentucky can assist your company
expand or locate in Russell County, Kentucky, click on the link below.