Applications received by Nov. 1 will be considered in 2026
FRANKFORT, Ky. (Sept. 3, 2026) – Today, Gov. Andy Beshear encouraged Kentucky small businesses that are creating jobs and investing in their communities to apply for a tax credit of up to $25,000 through the Kentucky Small Business Tax Credit (KSBTC) program.
“Kentucky’s small businesses fuel our economy, and their success is a win for our entire commonwealth,” said Gov. Beshear. “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. I’m happy to see businesses using this program to ensure continued success and am excited to see more companies receive this support in the upcoming year.”
To receive the KSBTC, qualifying small businesses should apply now to ensure their best chance of approval in time for this year’s tax filings. Although approval is not guaranteed, complete applications received by Nov. 1 will be fully reviewed for 2026 tax-credit eligibility. Applications can be submitted at any time throughout the year, but applications received after Nov. 1 may not be eligible for tax credits until the 2027 tax year. Tax credits are available to eligible companies that added at least one net new full-time employee and invested $5,000 or more in qualifying equipment or technology within the past 24 months.
“This is program helps businesses that continue to invest in their people and their future success in Kentucky,” said David Brock, executive director of KY Innovation. “The nearly 400,000 businesses employing more than 710,000 Kentuckians are the backbone of our economy and their communities. We encourage everyone who has hired people and purchased equipment in the last two years to check the program guidelines and apply by Nov. 1 if they are eligible.”
Qualifying small businesses may be eligible to receive a state income tax credit ranging anywhere from $3,500 to $25,000 per year. The tax credit amount depends on the number of jobs created and the amount invested in new equipment or technology. Most for-profit businesses with 50 or fewer full-time employees will qualify, including construction, manufacturing, retail, service and wholesale companies.
In the last year alone, the KSBTC approved businesses have received over $1.2 million for investing more than $3.9 million into their companies and creating 352 new Kentucky jobs. Since its inception, KSBTC has assisted in creating over 5,100 new jobs, generated more than $53.7 million in investments into small businesses and allocated over $17.4 million in total tax credits.
The Kentucky Small Business Tax Credit is a signature program offered through KY Innovation, the Cabinet for Economic Development’s office that encourages growth among Kentucky’s small businesses and entrepreneurs. Other KY Innovation resources include programs providing access to credit, mentoring and advocacy. Entrepreneurs and small businesses are also encouraged to connect with the multiple resources available to them at the six regional KY Innovation Hub offices statewide.
To learn more about this program, and others offered by KY Innovation – and to access the current version of the KSBTC application – visit NewKentuckyHome.ky.gov/Entrepreneurship/KSBTC, contact the Kentucky Cabinet for Economic Development at 800-626-2930, or email info@kyinnovation.com.
Kentucky’s investment in small-business resources furthers what has been the best six-year period for economic growth in state history.
Since the beginning of his administration, Gov. Beshear has announced more than 1,300 private-sector new-location and expansion projects totaling over $50.7 billion in announced investments, creating more than 70,000 jobs. This is the highest investment figure secured during the tenure of any governor in the commonwealth’s history and $29 billion more than the next highest total.
Gov. Beshear has announced some of the largest economic development projects in state history, which have solidified Kentucky as the battery capital of the United States: AESC’s $2 billion, 2,000-job gigafactory project in Warren County; Ford Motor Co.’s $2 billion, 2,200-job commitment in Louisville, as well as its $2 billion, 2,100-job project at the Kentucky 1 plant in Hardin County; Shelbyville Battery Manufacturing’s $712 million investment, creating 1,572 jobs in Shelby County; and Toyota’s $1.3 billion investment in Scott County, among others.
The Governor announced Kentucky once again set an all-time record for products shipped globally, with $51.6 billion in exports in 2025, representing a 7.65% increase over 2024.
Unemployment rates fell in all 120 counties between December 2024 and December 2025.
The Governor’s administration also secured the largest General Fund budget surplus and Rainy Day Fund. In 2023, Kentucky recorded over 2 million jobs filled for the first time ever and has stayed above that number ever since.
In addition, Kentucky has secured rating increases from major credit rating agencies Fitch Ratings, S&P Global Ratings and Moody’s Investors Service.
Earlier this year, Site Selection magazine ranked Kentucky in the top five nationally and second in the South Central region for economic development projects per capita in its 2025 Governor’s Cup rankings. In June, Area Development magazine awarded the commonwealth a Silver Shovel designation in its 2025 Shovel Awards, which highlight states for attracting high-value investment projects that will create a significant number of new jobs in their communities.
Gov. Beshear also announced a new initiative, called New Kentucky Home, to increase economic investment, attain and attract talent, and increase tourism across the state.
Information on Kentucky’s economic development efforts and programs is available at NewKentuckyHome.ky.gov. Fans of the Cabinet for Economic Development can also join the discussion at facebook.com/CEDkygov, on Twitter @CEDkygov, Instagram @CEDkygov and LinkedIn.
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