Cincinnati.com reports on the recent passage of a robust tax credit meant to support entrepreneurship and increase investment in Kentucky.
“This is a big development for this region, which has made growing and supporting startups a key part of economic development strategy, and is critically important to Northern Kentucky organizations like UpTech and bioLOGIC, which are supporting technology and life science companies.
Ironically, Ohio now finds itself trailing Kentucky in investor incentives. Ohio’s Technology Investment Tax Credit, which gave investors a 25 percent credit for investing in individual companies, has been dormant since November 2012 because it hit a $45 million cap.”
Highlights of the program include:
- Individuals who make qualified investments can claim a 40 percent state tax credit. The credit is 50 percent in counties struggling to add jobs and grow.
- Out-of-state individuals who invest in Kentucky startups can sell their credit to Kentucky residents. Example: An Ohio investor who has a $4,000 Kentucky credit sells it to a Kentucky resident for $3,000. The Ohio investor gets cash, while the Kentucky resident reduces his or her tax bill and nets $1,000 on the deal.
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