Kentucky Small Business Tax Credit Program
If you've recently grown your team or invested in new equipment or technology, your business may qualify for a new Kentucky Small Business Tax Credit (KSBTC)!
Kentucky Small Business Tax Credit Program
As part of our commitment to supporting local businesses, we're sharing information about a potential tax credit opportunity that may benefit your business. Please note that this program is administered by the Commonwealth of Kentucky and is not affiliated with Commonwealth Credit Union.
If you've recently grown your team or invested in new equipment or technology, your business may qualify for a new Kentucky Small Business Tax Credit (KSBTC) worth $3,500 to $25,000.
Who is eligible for the program?
Kentucky businesses with 50 or fewer full-time employees may be eligible if they have, within the past 24 months:
- Added at least one net new full-time employee and
- Invested $5,000 or more in qualifying equipment or technology
Applications submitted by November 1, 2026 will be considered for 2026 tax credit eligibility. Credit amounts are based on job creation and qualifying investments.
Businesses that meet the requirements are encouraged to review eligibility guidelines and apply through the Kentucky Cabinet for Economic Development.
Please note: because this is a state-administered program, questions regarding eligibility, applications, or awards should be directed to the Kentucky Cabinet for Economic Development at 800-626-2930 or info@kyinnovation.com.
Learn more and access the current application
Consult a tax professional for tax advice