Kentucky Governor Andy Beshear is encouraging small businesses across the commonwealth to apply for the Kentucky Small Business Tax Credit (KSBTC) program, which offers up to $25,000 in state income tax credits for creating jobs and investing in their communities. To ensure eligibility for 2026 tax filings, complete applications must be received by November 1.
"Kentucky’s small businesses fuel our economy, and their success is a win for our entire commonwealth," said Gov. Beshear. He added that "Team Kentucky is committed to supporting entrepreneurs throughout the state, just as they have supported their local communities and Kentuckians through continued investments and good-paying jobs."
Qualifying businesses must have added at least one net new full-time employee and invested $5,000 or more in new equipment or technology within the past 24 months. The program is open to most for-profit businesses with 50 or fewer full-time employees, including those in construction, manufacturing, retail, service, and wholesale sectors.
David Brock, executive director of KY Innovation, highlighted the program's benefit, stating, "This is program helps businesses that continue to invest in their people and their future success in Kentucky." He emphasized that the nearly 400,000 businesses employing over 710,000 Kentuckians are the "backbone of our economy and their communities."
The KSBTC program has demonstrated significant impact, approving over $1.2 million in credits in the last year alone, which supported more than $3.9 million in investments and created 352 new jobs. Since its inception, the program has helped create over 5,100 new jobs, generated more than $53.7 million in small business investments, and allocated over $17.4 million in total tax credits.
This initiative is part of Kentucky's broader economic growth, which has seen over $50.7 billion in announced investments and more than 70,000 jobs created during Gov. Beshear's administration. Small businesses are encouraged to visit NewKentuckyHome.ky.gov/Entrepreneurship/KSBTC for more information and to access the application.