Owsley County Kentucky

Eastern Kentucky Renewal Community Tax Advantages and Financing Local and Regional Finance Incentives

•	Kentucky Rural Economic Development Act (KREDA) - Breathitt, Lee, Owsley and Wolfe Counties are eligible and can offer KREDA incentives to companies who locate or expand in the Eastern Kentucky Renewal Community. New and expanding industries that hire at least 15 new employees and who will pay a minimum wage of at least $7.73 per hour plus benefits equal to 15% of the required minimum wage of $7.73 per hour are eligible. The company can also collect a job assessment fee of four percent of the gross wages of each employee whose job was created by the approved project and who is subject to state income tax. Overall, KREDA benefits equal a 100 percent debt service on land, buildings and equipment over 15 years in the amount of the KREDA qualified investment provided through a state income tax credit.

•	Kentucky Industrial Development Act (KIDA) - KIDA provides a 100 percent credit against state income tax liability for qualified projects and is available to any business entity that establishes a new manufacturing plan or expands existing manufacturing operations in Kentucky. Companies making a capital investment of at least $100,000 in land, buildings, fixtures, and equipment may receive up to a 100 percent credit against state income tax liability on taxable income generated from the project for up to ten years or a job assessment fee of three percent for each employee whose job is created by the approved project and who is subject to state income taxes.

•	Kentucky Jobs Development Act (KJDA) - KJDA provides tax credits for new and expanding non-manufacturing projects that provide at least 75 percent of their services to customers outside of Kentucky and that create at least 15 new full-time jobs for Kentucky residents. The company receives a tax credit for 50 percent of start-up costs and 50 percent of annual rent for 10 years.

•	Commonwealth Small Business Development Corporation (CSBDC) - The CSBDC is an economic development entity created under the auspices of the Small Business Administration (SBA) to foster development. The CSBDC is certified to make SBA 504 loans anywhere in the Commonwealth of Kentucky. The CSBDC can lend a maximum of 40% of project cost or $750,000 per project (in certain circumstances $1,000,000). The maximum loan term is 20 years for land and buildings and 10 years for equipment.

•	Unemployment Tax Credit - A $100.00 tax credit is allowed for each eligible person hired who has been unemployed for at least 60 days and who are hired for at least 180 days.

•	Recycling Tax Credit - This credit is available to businesses who purchase equipment specifically used to recycle or compost business or consumer waste and for machinery used exclusively to manufacture products composed substantially from business or consumer waste materials. The credit is limited to ten percent of total credits allowed and 25 percent of the taxpayer's state income tax liability.

•	General Education Development Tax Credit - This credit is available to employers for the portion of the time given to an employee to study for the GED. The credit is calculated by multiplying 50 percent of the hours released for study by the employee's hourly salary. The credit cannot exceed $1,250.00.

•	Bluegrass State Skills Corporation Tax Credit Program - This program allows companies to recover 50 percent of their approved costs for occupational and skills upgrade training costs through an income tax credit limited to $500 per Kentucky resident employed not to exceed $100,000 per company per biennium.

•	Kentucky Economic Development Finance Authority (KEDFA) - KEDFA provides business loans to supplement other financing. KEDFA finances qualified projects with a secured loan for up to $10,000 per new job created, not to exceed 25 percent of the project's fixed asset cost. The maximum loan amount is $500,000 and the minimum is $25,000. Small businesses with projects of less than $100,000 may receive loans on fixed assets for up to 45 percent of the project cost is enough jobs are created.

•	Community Development Block Grant Loan Program (CDBG) - CDBG provides low-interest loans to cities and counties who then lend the grant funds to businesses for the creation or retention of jobs. Terms of the loan are based on the financial analysis of the borrower.

•	Linked Deposit Loan Program - This program provides loans to small businesses and agribusiness. The State purchases Certificates of Deposit from participating lenders through the State Investment Corporation and makes low-interest loans for up to seven years.

•	Industrial Revenue Bond Program - IRBs can be issued by state and local governments in Kentucky and can be used to finance manufacturing projects and their warehousing areas, major transportation and communication facilities, most healthcare facilities, and mineral extraction and processing projects.

•	Local Government Economic Development Fund (LGEDF) - Breathitt, Lee, Owsley and Wolfe Counties can offer training incentives using LGEDF funds as well as using these funds to help finance the construction or development of facilities for manufacturing, processing, assembly, or facilities for non-manufacturing firms that add value to a product.

•	SKEDC Low-Interest Loan for Owsley County - The Southern Kentucky Economic Development Corporation was recently awarded a grant from the U.S. Department of Health and Human Services (HHS) to provide a $341,000 loan to a company choosing to locate in either of the two speculative buildings in the Lone Oak Industrial Park in Owsley County. Additionally, SKEDC participates in a revolving loan program that can finance fixed assets of qualified projects with a secured loan.

•	East Kentucky Corporation Loan Program - The East Kentucky Corporation makes loans to new and expanding businesses located within its 45-county service area that employ five or more people. Businesses must be manufacturers or businesses in which the majority of the customer base is outside of eastern Kentucky.

•	Somerset Community College On-the-Job Training Program - Somerset Community College was recently awarded an extended partnership with the National Centers for Excellence to provide on-the-job training opportunities to new and existing business and industry within the Kentucky Highlands Empowerment Zone, Enterprise Communities, and Champion Communities. Breathitt and Owsley Counties are designated Champion Communities by the U.S. Department of Agriculture (USDA).

•	Center For Rural Development C-Train Program - The C-Train program offers training grants that range from $500 to $25,000 per year and are available throughout the 40-county region served by the Center for Rural Development. C-Train focuses on technology skills training.

For more information contact: Susan Wilder · Executive Director Booneville/Owsley County Industrial Authority P.O. Box 637 · Booneville, KY 41314 Phone: 606-593-7296 · Fax: 606-593-7781 Email: swilder@owsleycountykentucky.org