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Kentucky Resources Page
Inward Investment Guides

U.S. Legislative, Incentives, & Economic Development Policies Update

Jason Hickey, President, Hickey & Associates, LLC (Q1 2016)
Growing companies need to be aware of the many changes states are making to their incentives policies. More

Location Notebook: Auto Industry Driving the Kentucky Economy

Steve Stackhouse-Kaelble (Directory 2016)
The auto industry is steering the Bluegrass State toward growth and prosperity, while the state works to meet the challenge of keeping enough workers in the pipeline. More

Regional Report: Manufacturing Leads the Way in the South

Mark Crawford (Directory 2016)
With strong automotive and aerospace sectors, as well as highly developed workforce training programs, the South continues to attract business investment. More

A Win-Win for Veterans & Companies Requiring Skilled Workers

Dan Emerson (Workforce Q4 2015)
Government and corporate initiatives are helping companies to utilize the skills of returning veterans to fill their need for qualified workers. More

Critical Site Selection Factor #7: Right-To-Work State Often the First Factor in the Location Decision

Steve Stackhouse-Kaelble (Q4 2015)
Manufacturers often will not consider a state that’s non–right-to-work, but today that rules out about half the country. More

Georgia Once Again Leads the 2015 Top States for Doing Business

Mark Crawford (Q3 2015)
An attractive business environment, quality labor pool, and well developed infrastructure are among the shared advantages of those states ranked by the location consultants as the top choices for business. More

Location Notebook: TVA Hitching Its Wagon to the Auto Industry

Cynthia Kincaid , Kincaid Strategic Partners (Q3 2015)
TVA is driving to make automotive manufacturing the cornerstone of the region. More

Frontline: NIH Expands Its REACH

Karen Thuermer (Q2 2015)
Bioresearch got a shot in the arm when the National Institutes of Health announced that three proof-of-concept hubs would join three already existing Research Evaluation and Commercialization Hubs: The Long Island Bioscience Hub, The University of Louisville and The University of Minnesota. More

KENTUCKY at a glance

POPULATION: 4,395,295 (2013)

LABOR FORCE: 2,413,942 (2013)

RIGHT TO WORK: No

TRADITIONAL INDUSTRIES: Automotive, distribution and warehousing, food manufacturing, fabricated metals, chemicals, healthcare, distilling, equine, defense, agriculture, mining

EXPANDING INDUSTRIES: Heathcare; finance; educational services; warehousing and storage; food manufacturing; transportation services; professional, scientific, and technical services

COLLEGE GRADUATES: (Age 25 and over) 22.6%

BASIC BUSINESS TAXES:
Corporate Income Tax: 4 percent of first $50,000 of taxable net income allocated to Kentucky; 5 percent on next $50,000; 6 percent on taxable income over $100,000

Corporation Franchise Tax: None

Sales and Use Tax: 6 percent of retail sales price of property sold, including utilities, that is used, consumed, distributed, or stored; 6 percent of rental charges and cost of admissions; no local sales tax

Property Tax: Real property is taxed at a state rate of $0.122 per $100 and is also taxed by local jurisdictions at varying rates; manufacturing machinery, telephone equipment, and pollution-control equipment are taxed only by the state at $0.15 per $100 assessed valuation.

BUSINESS INCENTIVES:
New and expanding industry tax credits for manufacturing, service, and technology businesses

Reinvestment tax credits for existing manufacturers

Tax credits for environmental product manufacturing

Tax credits for new and expanding alternative fuel, gasification, and renewable energy

Skills training grants and tax credits

New and expanding industry sales and use tax refunds

Tax increment financing

Grants and loans used to promote technology-driven industries

SBIR-STTR matching funds

Community Development Block Grants

Alternative fuels and renewable energy R&D tax credits

Debt or equity investments for early-stage high-tech firms

Venture capital-style state funding for early-stage technology firms

Grants to promote exports

Small business and micro loan programs

Small business tax credits

Direct loans

Film tax credits

Tourism project tax credits

Principal Manufacturing industries

  • Motor Vehicles, Bodies & Trailers & Parts
    20.3%
  • Food
    11.9%
  • Fabricated Metal Products
    8.7%
  • Machinery
    7.8%
  • Plastic & Rubber Products
    6.3%
  • Chemicals
    5.8%
  • Primary Metals
    5.2%
  • Printing & Related Support Activities
    4.5%
  • Electrical Equipment and Appliances
    4.3%
  • Wood Products
    4.2%
  • Other Manufacturing Industries
    20.8%
Source: Bureau Economic Analysis (BEA) 2013 Full-time and part-time wage and salary employment by NAICS industry