KIDA - Kentucky Industrial Development Act

Investments in new and expanding manufacturing projects may qualify for tax incentives for up to ten years. Companies must create at least 15 new full-time jobs and must make a capital investment of at least $100,000 in land, buildings, fixtures, and equipment. The project's real estate must be acquired by the approved company through either the acquisition of title or through a capital lease as defined under FASB13. Projects approved under KIDA may receive state income tax credits or collect a job development assessment fee of 3 percent of the gross wages of each employee whose job is created by the approved project and who is subject to Kentucky’s individual income tax. All real estate costs are eligible; however, equipment costs are limited to $20,000 per new full-time job created by and maintained at the economic development project.

Alternatively, the project’s real estate may be obtained through a minimum ten-year operating lease in which case the company will be limited to recover only the purchase and installation costs of the eligible equipment with a maximum recovery of $20,000 per new full-time job created and maintained at the project. Projects approved under the operating lease provision may only use the job assessment fee to recover the eligible equipment costs.