Kentucky’s job incentive programs were expanded in 2009 with the passage of the Kentucky Business Investment Act. Benefits are available for all types of companies - new, existing, and relocating; regional and national headquarters; back office; distribution and supply chain; manufacturing; and research and development.

Primary incentives include:

• Kentucky Business Investment (KBI program)- provides income tax credits and wage assessments to new and existing regional and national headquarters, manufacturing companies, non-retail service, technology-related, and agribusiness companies that locate or expand operations in Kentucky. 

• Kentucky Enterprise Initiative Act (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 also is available for eligible equipment used for research and development and data processing. This incentive applies to new or expanded service or technology, manufacturing, and tourism attraction projects in Kentucky. 

• Tax Increment Financing (TIF) - a performance-based incentive that permits a portion of the new state and/or local taxes generated by a development to be rebated back to the developer to help support the development costs.

  To qualify for a TIF, properties proposed for redevelopment must meet at least two of seven conditions of blight as defined by state law and fulfill a “but for” requirement, meaning the development would not happen “but for” the tax incentive.

  Local TIFs required approval by Louisville Metro Council. All other TIFs require approval from both Metro Council and Kentucky Economic Development Finance Authority.

The importance of a skilled workforce has never been greater. As companies think globally, it is vital that Kentucky's workforce be prepared to meet the hiring demands of employers. The Kentucky Cabinet for Economic Development plays a significant role in keeping Kentucky's businesses competitive in the global economy by providing financial assistance to train their workforce. Through the Cabinet’s Grant-in-Aid and Skills Training Investment Credit, the Kentucky Skills Network provides incentives to support Kentucky business’ efforts to help new and existing employees stay competitive through flexible, employer-driven skills-upgrade training.

• Grant-in-Aid (GIA) - The competitive Grant-in-Aid (GIA) provides cash reimbursements for occupational and skills upgrade training at Kentucky businesses.

• Skills Training Investment Credit (STIC) - The Skills Training Investment Credit (STIC) offers state income tax credits for companies to offset the costs for approved training programs.

In order to assist property and business owners in determining the best use of land and structures and help residents start a business, Louisville Metro Government offers the following redevelopment incentives.

Louisville Redevelopment Incentives

• Manufacturing Tax Moratorium - allows companies to save money when locating or expanding a facility in Louisville Metro. The Manufacturing Tax Moratorium abates property taxes for five years for:

  • A new manufacturing company locating in, or moving into, Louisville Metro

  • The increased value of a building/equipment for an existing manufacturing company that is expanding its operations with a new product line in Louisville Metro

Property Assessment/Reassessment Moratorium

The moratorium allows the waiver of the local incremental tax value for added improvements from the assessment of a structure for five years. The following properties are eligible:

• Structures older than 25 years are eligible if improvements are at least 25% of the property's value

• Structures older than 25 years and in a qualifying target area (a census tract where at least 70% of the residents are below 80% of the area median income for Jefferson County) are eligible if improvements are at least 10% of the property's value

• The qualifying property will, at the conclusion of the improvement plan, be LEED-certified.

Louisville Metro Government's Office of Sustainability and its many partners are working on several sustainability initiatives, many of which are listed in the city's sustainability plan, Sustain Louisville. The pages below provide information on Louisville's key sustainability programs.

• Louisville’s Energy Project Assessment District (EPAD) program is a tool that allows commercial property owners to repay private loans for energy efficiency, renewable energy and water conservation measures through a voluntary assessment administered by the Jefferson County Sheriff in the same manner as a property tax bill. The program allows property owners to secure more favorable financing terms than with traditional financing mechanisms. 

• Cool Roof Incentive Program - Without significant changes in the development of Louisville's urban landscape, urban temperatures are expected to increase over the coming decades due to the greenhouse gas effect, the displacement of trees and other natural vegetation, and the expansion of concrete, asphalt and other impervious surfaces. Rising urban temperatures have implications for public health as well as critical infrastructure preservation. 

• Solarize Louisville - Louisville Metro Government has partnered with the Kentucky Solar Energy Society(KYSES) and the Louisville Sustainability Council to launch the Solarize Louisville campaign to give households in Louisville/Jefferson County and seven surrounding counties the opportunity to go solar together and support the city’s 100% clean energy goals. The campaign gives households bulk-purchasing power to obtain discounted wholesale rates for solar installation from vetted installers. Our vetted installers this year are Icon Solar Power and Pure Power Solar. 

Louisville is home to dozens of foreign companies in manufacturing, food and beverage, and other industry sectors, as well as emerging areas of strengths for the city such as rapid turnaround life sciences services, other professional and technical services, and 3-D manufactured products. Companies like Eurofins, Computershare, Hogan Lovells, Clariant, LINAK, Midea, and so many others are developing opportunities and serving customers across the Americas and the world from right here in Louisville. Are you considering locating or expanding a foreign-owned company in the Louisville region? We’ll answer your questions, provide information on land and buildings, and connect you to potential partners and stakeholders in the region.

Exporting

From small and mid-sized companies to names known all over the world, Louisville companies sell their products and services in nearly 200 countries. Are you looking to begin or expand export of your product or service? We can help with information and counseling, and assist in navigating the region’s other resources for international business development.

Our Partners

• World Trade Center Kentucky - Louisville Office

• U.S. Commercial Service - Kentucky Office

• Kentucky Cabinet for Economic Development