Tax incentive would seek more new businesses

Kentucky business leaders and politicians will push the state for more incentives to invest in start-up companies.

Kentucky offers a angel investment tax credit to investment funds—not individuals—of up to 40 percent of the investment. Ohio and Indiana, along with more than 20 other states, offer similar incentives to individual investors.

 

In the past 11 years, investment funds have only taken $6.7 million in credits under the Kentucky Investment Fund Act, which has a credit limit of $40 million, according to a paper prepared by the Legislative Research Commission on the issues that confront the 2012 Kentucky General Assembly.

 

Business organizations like Northern Kentucky Chamber of Commerce and Northern Kentucky Tri-County Economic Development Corporation (Tri-Ed) hope to convince the legislature to include individuals in the tax credit. It could create more than 5,500 jobs in Kentucky over the next decade, according to Tri-ED. 

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