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Incentives for Doing Business in Muhlenberg County Kentucky

Muhlenberg County Kentucky's pro-business climate provides many incentives for businesses. The Kentucky Economic Development Finance Authority (KEDFA), established within the Cabinet for Economic Development to encourage economic development, business expansion, and job creation, provides financial support through an array of financial assistance and tax credit programs. Helping businesses in this way furthers Muhlenberg County's, and the Commonwealth’s, goals of achieving long-term economic growth and employment opportunities for its citizens.

Since every company's project needs are different, all incentives offered in Kentucky and Muhlenberg County are tailored to those specific needs. Following are some of the incentives which may be applicable to your project. As always, MAP serves as your first point of contact. We will work diligently to put together the right package for your new or expanding business.

  • Kentucky Business Investment (KBI) Program – (PDF)
    Provides income tax credits and wage assessments to new and existing agribusinesses, regional and national headquarters, manufacturing companies, and non-retail service or technology related companies that locate or expand operations in Kentucky. Projects locating in certain counties may qualify for enhanced incentives. Click here to view a map of the enhanced incentive counties.
  • Kentucky Enterprise Initiative Act (KEIA)(PDF)
    For new or expanded service or technology, manufacturing, or tourism attraction project in Kentucky. KEIA provides a refund of Kentucky sales and use tax paid by approved companies for building and construction materials permanently incorporated as an improvement to real property. It is also available for Kentucky sales and use tax refunds for eligible equipment used for research and development and data processing equipment.
  • Direct Loan Program (KEDFA) (PDF)
    KEDFA encourages economic development business expansion and job creation by providing business loans to supplement other financing. The Direct Loan Program provides loans at below-market interest rates (subject to the availability of state revolving loan funds) for fixed asset financing for agribusiness, tourism, industrial ventures, or the service industry. Retail projects are not eligible.
  • Industrial Revenue Bonds – IRB (PDF)
    IRBs issued by state and local governments in Kentucky can be used to finance manufacturing projects and their warehousing areas, major transportation and communication facilities, most health care facilities, and mineral extraction and processing projects. Click here for the IRB Procedures.
  • Community Development Block Grants Loans – CDBG
    Federally funded low interest loans made available through the Department for Local Government.
  • Kentucky Reinvestment Act (KRA) – (PDF)
    Provides tax credits to an existing Kentucky company engaged in manufacturing and related functions on a permanent basis for a reasonable period of time that will be investing in eligible equipment and related costs of at least $2,500,000.
  • Kentucky Industrial Revitalization Act (KIRA) PDF
    Investments in the rehabilitation of manufacturing or coal mining and processing operations that are in imminent danger of permanently closing or that have closed temporarily may qualify for tax credits. An eligible company shall also include one that has closed but resumes mining operations. Eligible entities include manufacturing companies that save or create 25 jobs and coal mining and processing companies that intend to employ a minimum of 500 persons and have a raw production of at least three million tons from the economic revitalization project facility.
  • High-Tech Investment / Construction Pools (PDF)
    The Department of Commercialization and Innovation provides funds to help further the commercialization of a product, process, or other innovation. Incentives awarded are in the form of forgivable loans, with the amount of the loan primarily based on the applicant company’s projected high-tech job creation. These forgivable loans typically range from $150,000 to $400,000 depending upon the project.
  • SBIR-STTR Matching Funds Program
    The Cabinet will match, on a competitive basis, Phase 1 and Phase 2 federal Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) awards received by Kentucky high-tech small businesses and those willing to become Kentucky-based businesses. This includes matching Phase 1 federal awards up to $150,000 to support the exploration of the technical merit or feasibility of an idea or technology, and up to $500,000 of federal Phase 2 awards, which support full-scale research and development.
  • Commonwealth Seed Capital LLC
    The Commonwealth Seed Capital LLC (CSC) provides early-stage seed funds to facilitate the commercialization of innovative ideas and technologies developed in Kentucky. CSC will invest state capital in Kentucky technology companies.
  • Kentucky Enterprise Fund and Rural Innovation Fund
    The Kentucky Enterprise Fund and the Rural Innovation Fund provide seed-stage capital to Kentucky-based companies that are commercializing a technology-based product or process. The funds exist to stimulate private investment in Kentucky-based technology companies with high growth potential. The Kentucky Science and Technology Corporation administers the funds under contract with the Council on Postsecondary Education.
  • Kentucky New Energy Ventures Fund
    The Kentucky New Energy Ventures Fund provides seed stage capital to support the development and commercialization of alternative fuel and renewable energy products, processes, and services in Kentucky. The funds exist to stimulate private investment in Kentucky-based technology companies with high growth potential. KNEV makes grants of $30,000 and investments ranging from $250,000 to $750,000+. Qualified companies must be Kentucky-based and funds are to be used for business development activities.
  • Incentives for Energy Independence Act – IEIA (PDF)
    Requires a capital investment of at least $25 million for an alternative fuel facility using biomass, or an investment of at least $100 million for an alternative fuel facility using coal, as its primary feedstock. A capital investment of at least $1 million is required for a renewable power facility that meets minimum electric output standards based upon the power source. The negotiated incentives cannot exceed 50% of the capital expenditures and may include a reimbursement of sales and use taxes paid on tangible personal property; a tax credit of the income tax and limited liability entity tax owed by the company; and, wage assessment incentives up to 4% of gross wages of each employee whose job was created as part of the project. Advanced disbursements may also be available.
  • Kentucky Environmental Stewardship Act (KESA) (PDF)
    For companies manufacturing products that have a substantial positive impact on human health and the environment. Companies with projects approved under KESA must have at least $5 million in eligible cost and can potentially recover up to 25% of the projects fixed asset cost and 100% of employee skills training. The tax incentive is available for recovery over a 10-year period.
  • The Kentucky Small Business Investment Credit (KSBIC)
    The KSBIC program is designed to encourage small business growth and job creation by providing a nonrefundable tax credit to eligible businesses hiring one or more eligible individuals and investing at least $5,000 in qualifying equipment or technology. With certain exceptions, most for-profit businesses with 50 or fewer full-time employees are considered eligible for this program. The KSBIC program is limited to allocating a total of $3 million in tax credits per state fiscal year.
  • Small Business Loan Program (PDF)
    The Small Business Loan Program is designed to help small businesses acquire funding needed to start or grow their small business. A small business must be engaged in manufacturing, agribusiness, or service and technology. Loan funds may be used to acquire land and buildings, purchase and install equipment, or for working capital. The minimum loan amount is $15,000 and the maximum is $100,000. The approved company must create one new full-time job within one year of the loan closing. KEDFA can fund up to 100% of the project costs and the loan can be used in conjunction with other lenders. The term of the loan can range from 3-10 years.
  • Kentucky Microenterprise Loan Program (PDF)
    Provides technical assistance and business loans, up to $50,000, to entrepreneurs in 25 Kentucky counties that formerly had no access to such a program. Funds may be used for, among other purposes, working capital, equipment purchases and inventory purchases.
  • U.S. Small Business Administration
    Federal agency that provides a number of guaranteed loan and other financial assistance programs to small businesses.
  • Tax Increment Financing (TIF)(PDF)
    Tax increment financing (TIF) is a tool to use future gains in taxes to finance the current improvements that will create those gains. The state participates with local governments and eligible agencies in three TIF programs: the Commonwealth Participation Program for State Real Property Ad Valorem Tax Revenues, the Signature Project Program, and the Commonwealth Participation Program for Mixed-Use Redevelopment in Blighted Urban Areas.
  • TIF Loan Support Program(PDF)
    Any agency with a Tax Increment Financing Signature Project approved by the former Tax Increment Financing Commission and which executed its tax incentive agreement prior to January 1, 2008 may apply for The Tax Increment Financing (TIF) Loan Support Program. The Loan Support Program facilitates a supplemental reserve fund to cover debt service related to the bond financing of the TIF project.
  • Local Redevelopment TIF (PDF)
    The program is available for use to redevelop blighted areas into mixed use development by using the incremental additional local taxes such as property or occupational taxes realized as a result of the development. The community or agency can request state participation in this program with certain additional requirements.
  • Local Vacant Land TIF (PDF)
    This program is available to develop vacant land by using the additional incremental local taxes, such as property or occupational taxes, realized as a result of the new development (example: construction of infrastructure at a local industrial park). State tax increment is not available for this type of development area.
  • Kentucky Agricultural Development Fund
    The Kentucky Agricultural Development Fund provides incentives for innovative proposals that increase net farm income, stimulates markets for Kentucky agricultural products, creates new ways to add value to Kentucky agricultural products, and explores new opportunities for Kentucky farmers. For more information visit the Governor’s Office of Agricultural Policy’s website.
  • Kentucky Agricultural Finance Corporation
    The Kentucky Agricultural Finance Corporation provides capital access for agricultural diversification and infrastructure projects. Participating Loan Programs Include: Agricultural Infrastructure, Beginning Farmer, Diversification through Entrepreneurship in Agri-business and Large Animal Veterinary Programs. Direct Loan Programs include the Agricultural Process Loan Program and the Coordinated Value-Added Assistance Loan Program. For more information visit the Governor’s Office of Agricultural Policy’s KAFC website.

The following tourism-related incentives are administered through the Kentucky Tourism, Arts and Heritage Cabinet.

  • Tourism Development Act (PDF)
    The Tourism Development Act provides developers of approved new or expanding tourism projects the ability to recover up to 25% of the project’s development costs over a 10-year term. Projects including, but not limited to, lodging facilities constructed on state park, federal park or national forest lands are eligible to recover up to 50% of the development costs over a 20-year term.
  • Kentucky Film Incentive
    The Kentucky Film Incentive is designed to encourage the development of the film industry in Kentucky. The incentive provides qualifying applicants the ability to recover up to 20% of qualified expenditures through a refundable income tax credit. Qualifying applicants must invest a minimum of $50,000 for documentaries and national touring Broadway shows, $200,000 for commercials, $500,000 for full-length films.
  • Bluegrass State Skills Corporation Grant Reimbursement Program
    Provides matching grant funds for customized business and industry-specific training programs.
  • Direct Loan Program (KEDFA) (PDF)
    KEDFA encourages economic development business expansion and job creation by providing business loans to supplement other financing. The Direct Loan Program provides loans at below-market interest rates (subject to the availability of state revolving loan funds) for fixed asset financing for agribusiness, tourism, industrial ventures, or the service industry. Retail projects are not eligible.
  • Small Business Loan Program (PDF)
    The Small Business Loan Program is designed to helps small businesses acquire funding needed to start or grow their small business. A small business must be engaged in manufacturing, agribusiness, or service and technology. Loan funds may be used to acquire land and buildings, purchase and install equipment, or for working capital. The minimum loan amount of $15,000 and the maximum is $100,000. The approved company must create one new full-time job within one year of the loan closing. The Kentucky Economic Development Finance Authority (KEDFA) can fund up to 100% of the project costs and the loan can be used in conjunction with other lenders. The term of the loan can range from 3-10 years.
  • Enterprise Zones(PDF)
    Encourages new or renewed development to targeted areas of the state by offering special tax incentives and eased regulations to businesses locating in a zone.
  • Kentucky Enterprise Initiative Act (KEIA)(PDF)
    For new or expanded service or technology, manufacturing, or tourism attraction project in Kentucky. KEIA provides a refund of sales and use tax paid by approved companies for construction materials and building fixtures. It is also available for sales and use tax refunds for equipment used in research and development.
  • Industrial Revenue Bonds – IRB (PDF)
    IRBs issued by state and local governments in Kentucky can be used to finance manufacturing projects and their warehousing areas, major transportation and communication facilities, most health care facilities, and mineral extraction and processing projects.
  • Angel Capital Electronic Network (ACE-NET)
    Listing service to facilitate exchange of information between entrepreneurs and investors.
  • Commonwealth Small Business Development Corporation-CSBDC
    SBA 504 Loan Program.
  • Community Development Block Grants Loans – CDBG
    Federally funded low interest loans.
  • Kentucky Tourism Development Act – KTDA
    Incentives for qualified new or expanded tourism projects.
  • Linked Deposit Program
    Loans up to $100,000 for small business and agribusiness.
  • Local Government Economic Development Fund – LGEDF
    The Local Government Economic Development Fund provides funding to counties in coal producing areas to help diversify their economies. The “multi-county” pool of funds which helps to finance joint ventures between eligible counties is administered by the Cabinet for Economic Development.

Economic Development Rider (EDR) is designed to promote economic development efforts in the KY LG&E and KU service territory. The EDR is available for service under the KU’s Standard Rate Schedules - Time-of-Day Secondary Service, Time-of-Day Primary Service, and Retail Transmission Service. The EDR is available for service under the LG&E’s Standard Rate Schedules - Industrial Time-of-Day Secondary Service, Commercial Time-of-Day Secondary Service, Industrial Time-of-Day Primary Service, Commercial Time-of-Day Primary Service and Retail Transmission Service. The rider is intended to encourage Brownfield Development and Economic Development for existing customer’s expansion or new customer locations. Service under EDR is conditional on a special contract, approved by the KY Public Service Commission.

Criteria

  • Brownfield Development EDR is available to customers locating at sites that have been approved and added to the Brownfield Inventory maintained by the KY Energy and Environmental Cabinet. The Brownfield EDR is available only to billing loads of 500 kVA (or kW as is appropriate) or greater where the customer takes service from existing Company facilities.
  • Economic Development EDR is available to new customers contracting for a minimum annual average of monthly billing load of 1,000 kVA (or kW as is appropriate); and existing customers contracting for a minimum annual average of monthly billing load of 1,000 kVA (or kW as is appropriate) above their existing base load, to be determined by averaging the customer’s previous three years’ monthly billing loads. A customer must describe the new load to be served; the number of new employees associated with the new load; the capital investment associated with the new load; and exhibits the certification that the customer has been qualified for benefits under the Kentucky Business Investment Program (KBI).

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location of Muhlenberg Kentucky

Percent of US Within 600 Miles of Muhlenberg County, Kentucky...
Population 50%+
(within 120 miles of the Median Center of US Population)
Personal Income 56%
Retail Sales 41%
Manufacturing Employment 51%

Location topo for Muhlenberg County Kentucky