Are you or your Clients Missing Out on Small Business Tax Credits?

Good morning Karen,

Because you likely have clients who either hired new employees last year or bought qualifying equipment or technology, I’m writing you about the Kentucky Small Business Tax Credit (KSBTC) program. If a Kentucky business has 50 or fewer full-time employees and either (1) hired new employees or (2) purchased certain equipment or technology, then that business is likely eligible for the KSBTC. You may image001-2already know about this, but I want to alert you to it just in case. Apparently a lot of folks are leaving this money (up to $25,000 per qualifying business) on the table. If you think that might be the case with any of your clients, I’d be happy to help them utilize this credit.

Kentucky small-business owners missing out on millions in state tax credits
[kentucky_simple]<http://insiderlouisville.com/wp-content/uploads/2015/02/kentucky_simple.gif?ef83fd>Many of Kentucky’s small-business owners are leaving a huge chunk of change on the table this tax season.
And so the Kentucky Cabinet for Economic Development has reached out to area small businesses to remind them they could be eligible for Kentucky Small Business Tax Credits of up to $25,000.
If your small business recently hired at least one new full-time employee and invested at least $5,000 in new equipment or technology, you may be eligible for a credit.
Qualified applicants are eligible to receive a tax credit in an amount not to exceed the lesser of: 1) $3,500 per eligible position added; or 2) the total dollar amount invested in qualifying equipment or technology. Applicants are also subject to a $25,000 maximum tax credit cap per applicant for each calendar year.
“Last year, Kentucky businesses received less than a 10th of the money allotted for the credit because very few applied for it,” says Mandy Lambert, commissioner of business development in the Kentucky Cabinet for Economic Development. “The Kentucky Small Business Tax Credit directly puts money back into the pockets of small businesses and helps them grow and create jobs. We’re confident that if more small businesses know of this opportunity, they will take advantage.”
The state can issue these credits until they reach a statutory limit of $3 million. According to state figures, then, our small businesses have left $2.7 million in tax credits unclaimed.
Luke A. Swain
Associate

Dinsmore & Shohl LLP • Legal Counsel
Lexington Financial Center
250 West Main Street
Suite 1400
Lexington, KY 40507
T (859) 425-1009 • F (859) 425-1099
E luke.swain@dinsmore.com • dinsmore.com

Comments

  1. chrismackey says:

    thanks

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