The Lexington-Fayette Urban County Government participates in the Commonwealth of Kentucky’s Kentucky Business Investment Program. This program is a state administered tax incentive, authorized by KRS 154.32, which is approved by the Kentucky Economic Development Finance Authority.
In order to be eligible a company must:
- Create 10 new, full-time jobs for Kentucky residents.
- Incur eligible costs of at least $100,000.
- Pay average hourly wages of at least 150% of the federal minimum wage.
- Provide a minimum level of benefits by the activation date.
Incentives are approved for up to 10 years. The Lexington-Fayette Urban county Government participates by providing an inducement of 1% of payroll taxes to the company per authorized job once a company has been approved by the Kentucky Economic Development Finance Authority. That reduces the payroll taxes paid per job from 2.25% to 1.25%. The local inducement is approved by resolution of the Urban County Council.
To learn more about KBI, visit the Kentucky Cabinet for Economic Development’s website.