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Kentucky Resources Page
Inward Investment Guides

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

2015 Gold & Silver Shovel Awards Recognizing Excellence in State Job Creation and Economic Development Efforts

Area Development Special Presentation (Q2 2015)
Area Development’s annual awards recognize individual states for their overall economic development effectiveness. This year, we honor 21 states for their achievements in 2014 in garnering investment and job creation with Texas, Georgia, Tennessee, South Carolina and Nevada awarded the Gold Shovel. More

U.S. Labor: Satisfying Foreign Investors’ Needs

Steve Stackhouse-Kaelble (Location USA 2015)
Although the labor environment varies from state to state, foreign companies choosing a U.S. location are finding competitive wage rates, quality training resources, and workers eager to join their labor forces. More

Assessing a Location’s Workforce

Keith Gendreau, Consulting Manager, Global Consulting Group, Cushman & Wakefield (Workforce Q1 2015)
Every labor market is unique. Evaluating a region’s labor suitability for a new or expanding operation should consider many factors beyond population size and unemployment rates. Understanding the interconnectivity of topics pertaining to competitive demand, pay practices, attrition, applicant flow/quality, geographic site positioning, union activity, benefit offerings, and training resources is important and will better inform a location commitment decision. More

Veterans: A Natural Fit to Close the Skills Gap

Dan Emerson (Workforce Q1 2015)
National, regional, and corporate initiatives are helping to connect those leaving the military, who need careers, with U.S. employers, who need skilled workers. More

Slideshow: 2014 Gold and Silver Shovel Award Recipients

Area Development Special Presentation (Directory 2015)
Shown here are 12 of the recipients of Area Development’s 2014 Gold & Silver awards, which were bestowed in recognition of the states’ efforts to capture new facility and expansion projects that resulted in significant investment and job creation. All told, 20 states were recognized for their efforts. More

Regional Report: Auto, Aviation, Energy Drive Growth in the South

Steve Stackhouse-Kaelble (Directory 2015)
The Southern States are driving into the future on the strength of the motor vehicle industry. These states tend to be heavy on manufacturing; their manufacturing sectors tend to have strong automotive activity, and it’s a good time to be in that business. That’s among the reasons all six of the states in this region took home Area Development’s Silver Shovel honors earlier this year. 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