Corporate Business Tax Credits are provided for business entities to help lower business costs, encourage more investment in specific areas or growth in targeted industry sectors, and encourage development in certain locations.
Insurance Reinvestment Tax Credit provides a 100% tax credit on insurance premiums for insurance companies willing to invest their capital with approved fund managers who invest that capital in growing Connecticut businesses. Funding opportunities include 25% committed to green technology businesses and 3% to pre-seed investments.
Urban/Industrial Sites Reinvestment Tax Credit of up to 100%, up to $100 million is available to corporation locating in an urban area or on an industrial site. The minimum investment is: $5 million in distressed communities, $2 million for a historic preservation facility redeveloped for mixed use, or $50 million in all other communities. The amount of credits offered is based on the department’s extensive due diligence process. For urban sites, the investment must add substantial new economic activity, increase employment and generate significant additional tax revenues to the municipality and the state. For industrial sites, the investment must be made in real property, or in improvements to real property, located within Connecticut that has been subject to environmental contamination. The investment should return the property to a viable business condition that will add significant new economic activity, increase employment, and generate additional tax revenue to the state and the property’s municipality.
Airport Development Zone Program provides a five-year 80% abatement of local property taxes on qualifying real estate and personal property (machinery and equipment) to new investments to the municipality’s Grand List as a direct result of a business expansion and/or renovation. These programs are designed to encourage capital improvements to land and/or buildings, businesses must be prepared to either renovate an existing facility by investing at least 50% of its pre-acquisition value in the renovation, OR construct a new facility, OR expand an existing facility, OR acquire a facility that has been idle (minimum period of idleness depends on average number of employees).
Bioscience Enterprise Corridor Zone – Companies involved in manufacturing, research associated with manufacturing and distribution warehousing may benefit from: (1) a five-year 80% abatement of local property taxes on qualifying real estate and personal property (machinery and equipment)—the investment must be new to the municipality’s Grand List as a direct result of a business expansion and/or renovation; and (2) other benefits as stipulated in the Connecticut General Statutes.
Corporate Business Tax Exemption – Investments that help your business create jobs and modernize may be eligible for tax relief, including: (1) all insurance companies, (2) certain banks, insurers and investment companies locating in the Hartford Financial Service Export Zone that conduct all business with non-U.S. persons, (3) companies that sell protected open space or Class I or II water company land to the state or certain entities, (4) non-U.S. corporations whose sole activities in CT are trading stocks, securities or commodities of your own account.
Enterprise Corridor Zone – Companies involved in manufacturing, research associated with manufacturing and distribution warehousing (new construction/expansion only) as well as certain service companies that develop properties within this zone may receive a five-year 80% abatement of local property taxes on qualifying real estate and personal property (machinery and equipment)—the investment must be new to the municipality’s Grand List as a direct result of a business expansion and/or renovation
Federal Opportunity Zone Tax Benefits allows investors who move any realized capital gains into a qualified Opportunity Zone Fund within 180 days of the asset sale to defer paying capital gains taxes on that gain until December 31, 2026 — or until they sell their Opportunity Zone Fund investment, whichever is earlier. Investors may also be able to minimize, or even eliminate, those taxes depending on how long they hold the opportunity zone fund investment.
Manufacturing Plant Zone – Companies involved in manufacturing, research associated with manufacturing and distribution warehousing (new construction/expansion only) may benefit from (1) a five-year 80% abatement of local property taxes on qualifying real estate and personal property (machinery and equipment)—the investment must be new to the municipality’s Grand List as a direct result of a business expansion and/or renovation, and (2) other benefits as stipulated in the Connecticut General Statutes. Certain service companies may also be eligible for these benefits based on several sliding scales.
Railroad Depot Zone – Companies involved in manufacturing, research associated with manufacturing and distribution warehousing (new construction/expansion only) as well as certain service companies that develop properties within this zone may receive: (1) a five-year 80% abatement of local property taxes on qualifying real estate and personal property (machinery and equipment)—the investment must be new to the municipality’s Grand List as a direct result of a business expansion and/or renovation, and (2) other benefits as stipulated in the Connecticut General Statutes. Businesses must be prepared to either renovate an existing facility by investing at least 50% of its pre-acquisition value in the renovation, OR construct a new facility, OR expand an existing facility, OR acquire a facility that has been idle (minimum period of idleness depends on average number of employees).
Manufacturing and Biotech Sales and Use Tax Exemption provides a 100% sales tax exemption may be available for: (1) purchases of machinery used directly in the manufacturing production process, as well as materials, tools and fuel used in the manufacture or fabrication of finished products; and (2) sale of and the storage, use or other consumption of machinery, equipment, tools, materials, supplies and fuel in the biotechnology industry. A 50% tax exemption on machinery, tools, fuel and equipment may be available for those not meeting the requirements for the full exemption.
Manufacturing Machinery and Equipment Tax Exemption provides a five-year, 100% property tax exemption for eligible machinery and equipment acquired and installed in a manufacturing or biotechnology facility.
Real and Personal Property Tax Exemptions are available based on the following: (1) 100% tax exemption for five years for newly acquired and installed machinery and equipment eligible for five- to seven-year depreciation; (2) 100% exemption for inventories; (3) 30-100% exemption for increased assessment for personal property for manufacturers; (4) 20-50% exemption for eligible real property improvements for two to seven years, depending on the investment amount; (5) 100% exemption for installed and used unbundled software, machinery and equipment; and (6) 100% exemption for five years for new commercial motor vehicles weighing over 26,000 lbs. that are used to transport freight for hire and all new commercial vehicles weighing over 55,000 lbs.
Maine’s Pine Tree Development Program allows biotech., aquaculture, manufacturing, and IT businesses the chance to reduce or eliminate state tax liability for up to ten years.
Maine’s Finance Authority and participating lenders will make special terms available to Maine-based businesses that have experienced interruption or hardship due to COVID-19 for loans up to $50,000.
Maine Employment Tax Increment Financing Program refunds between 30%-80% of the state withholding taxes paid by the business for up to ten years based on the company’s location within Maine.
Maine’s Business Equipment Tax Exemption program exempts most business equipment from local property taxation across the state
Maine’s Major Business Headquarters Expansion Program (MBHQ) provides a tax credit against the total tax due for 2% of its qualified investment in the State not exceeding $16,000,000 if a company locates its principal facility from which it conducts national/global business in Maine, employ at least 5,000 individuals worldwide (25% in Maine), have business locations in at least three other states/nations, and intent to make an investment of at least $35,000,000.
Maine Employment Tax Increment Financing Program refunds between 30%-80% of the state withholding taxes paid by the business for up to ten years based upon the company locating in an underserved market.
Dairy Farmer Tax Credit – Massachusetts dairy farmers may be eligible for a tax credit against Massachusetts income tax or corporate excise liability. The tax credit is intended to offset downturns in milk prices paid to dairy farmers when the cost of milk drops below a price based on federal standards. The credit amount is based on the amount of milk the farm produces and sells anytime during the tax year.
Economic Opportunity Area Credit (EOAC) is designed to stimulate job creation in distressed areas, attract new businesses, encourage business expansion, increase overall economic development in Massachusetts. Individuals, partnerships, or corporations may apply to the EACC to have their businesses designated as certified projects in an EOA. Businesses may earn a credit for qualifying tangible properties including buildings or structural components of buildings acquired by purchase. During the tax year, the “qualifying tangible properties” must have been acquired, constructed, reconstructed, or erected. The qualifying property cannot be a motor vehicle, must be either depreciable property with a useful life of 4 years or recovery property, and cannot be purchased from closely related parties
The Economic Redevelopment and Growth (ERG) Program is an incentive for developers and businesses to address revenue gaps in development projects. It can also apply to projects that have a below market development margin or rate of return. The grant is not meant to be a substitute for conventional debt and equity financing, and applicants should generally have their primary debt financing in place before applying.
The Employee Training Incentive Program provides refundable tax credits to New York State employers for skills training that upgrades or improves the productivity of their employees. Businesses can also receive tax credits for approved internship programs that provide training in advanced technology, life sciences, software development or clean energy.
Illinois’ Data Center Investment Program provides new and existing, carbon neutral data centers making an aggregate investment of $250 M over a 60-month period with exemptions from state and local taxes (and a 20% credit towards wages paid for construction workers in underserved areas), and eligible centers must create at least 20 full-time equivalents in aggregate and meet or exceed compensation totaling 120% of the median wage paid to FTEs in the county where the center is located.
Illinois Growing Economy Tax Credit Program provides annual, non-refundable, income tax credits to businesses supporting job creation equal to 50% of the income tax withholdings of new jobs created in Illinois (up to 75% if located within an underserved census area) employer eligibility depends upon its number of world-wide employees.
Illinois High Impact Business Program supports tax credits for companies with a minimum investment of $12 M and create 500 FTE’s, or $30 M of investment with a retention of 1,500 FTEs. This program cannot be used in conjunction with the Enterprise Zone Program.
Illinois Enterprise Zone Program awards a mix of state and local tax incentives for reductions in a retailers’ occupation tax, state utility tax, and purchases on personal property used in manufacturing process and local incentives such as Cook County industrial property EZs receives special consideration under the Class 6b – Industrial Program and is generally assessed at 25 percent of market value in the absence of any incentives. This program cannot be used in conjunction with the High Business Program.
Illinois Small Business Emergency Loan Fund offers small businesses located outside of the City of Chicago with fewer than 50 workers and less than $3 M in revenue in 2019 low interest loans of up to $50,000. This fund was created in response to the COVID-19 pandemic. It is not an ongoing incentive.
Illinois Tax Increment Financing captures future property tax growth in a defined district for the redevelopment of substandard, obsolete, or vacant buildings, financing general public infrastructure improvements, including streets, sewer, water in declining areas, cleaning up polluted areas, administration of a TIF redevelopment project, property acquisition, rehabilitation or renovation of existing public or private buildings, construction of public works or improvements, job training, relocation, financing costs, including interest assistance, studies, surveys and plans, marketing sites within the TIF, professional services, such as architectural, engineering, legal and financial planning, and demolition and site preparation.
The Venture Capital Investment Tax Credit program improves access to capital for fast growing Indiana companies by providing individual and corporate investors an additional incentive to invest in early stage firms. Investors who provide qualified debt or equity capital to Indiana companies receive a credit against their Indiana tax liability.
The Redevelopment Tax Credit provides an incentive for investment in the redevelopment of vacant land and buildings as well as brownfields. This credit provides companies and developers an assignable income tax credit for investing in the redevelopment of communities, improving quality of place and building capacity at the local level.
The Hoosier Business Investment Tax Credit provides incentive to businesses to support job creation, capital investment and to improve the standard of living for Indiana residents. The non-refundable corporate income tax credits are calculated as a percentage of the eligible capital investment to support the project. The credit may be certified annually, based on the phase-in of eligible capital investment, over a period of two full calendar years from the commencement of the project.
The Economic Development for a Growing Economy (EDGE) Tax Credit provides an incentive to businesses to support jobs creation, capital investment and to improve the standard of living for Indiana residents. The refundable corporate income tax credit is calculated as a percentage (not to exceed 100%) of the expected increased tax withholdings generated from new jobs creation. The credit certification is phased in annually for up to 10 years based upon the employment ramp-up outlined by the business.
The Community Revitalization Enhancement District (CRED) Tax Credit provides an incentive for investment in community revitalization enhancement districts. The credit is available to taxpayers that make qualified investments for the redevelopment or rehabilitation of property located within a revitalization district. Only those projects that the IEDC expects to have a positive return on investment will be considered.
The Headquarters Relocation Tax Credit (HRTC) provides a tax credit to corporations that relocate their headquarters to Indiana. The credit is assessed against the corporation’s state tax liability.
The Small Headquarters Relocation Tax Credit (S-HQRTC) provides a refundable tax credit to a small, high-growth business that relocates its headquarters or the number of employees that equals 80% of the company’s total payroll to Indiana. The credit is assessed against the corporation’s state tax liability.
Research & Development Sales Tax Exemption: There is a 100 percent sales tax exemption for qualified research and development equipment and property purchased. Taxpayers may file a claim for refund for sales tax paid on such a retail transaction should they not purchase it exempt from sales tax at the time of the actual transaction. Research and development equipment and property is defined as tangible personal property that has not previously been used in Indiana for any purpose and is acquired by the purchaser for the purpose of research and development activities devoted to experimental or laboratory research and development for new products, new uses of existing products, or improving or testing existing products.
Patent Income Tax Exemption provides that a taxpayer may not claim an exemption for income derived from a particular patent for more than 10 taxable years. The exemption percentage begins at 50 percent of income derived from a qualified patent for each of the first five taxable years, and decreases over the next five taxable years to 10 percent in the 10th taxable year. It also specifies that a taxpayer is eligible to claim the exemption only if the taxpayer is domiciled in Indiana and is either an individual or corporation with not more than 500 employees including employees in the individual’s or corporation’s affiliates or is a nonprofit organization or corporation.
The Data Center Gross Retail and Use Tax Exemption provides a sales and use tax exemption on purchases of qualifying data center equipment and energy to operators of a qualified data center for a period not to exceed 25 years for data center investments of less than $750 million. If the investment exceeds $750 million, the IEDC may award an exemption for up to 50 years.
The Industrial Grant Fund provides assistance to municipalities and other eligible entities as defined under I.C. 5-28-25-1 with off-site infrastructure improvements needed to serve the proposed project site. Upon review and approval of the Local Recipient’s application, project specific Milestones are established for completing the improvements. IDGF will reimburse a portion of the actual total cost of the infrastructure improvements.
The High Quality Jobs (HQJ) program provides qualifying businesses assistance to off-set some of the costs incurred to locate, expand or modernize an Iowa facility. This flexible program includes loans, forgivable loans, tax credits, exemptions and/or refunds. The Iowa Economic Development Authority offers this program to promote growth in businesses, which employ Iowans in jobs defined as high-quality by state statute.
The Iowa Industrial New Jobs Training (260E) program assists businesses creating new positions with new employee training. Eligible businesses may be new to Iowa, expanding the Iowa workforce or relocating to the state.
The Economic Development Set Aside (EDSA) program provides financial assistance to businesses and industries requiring assistance to create or retain job opportunities in Iowa. EDSA develops viable communities that provide economic opportunities for people, especially those with low- and moderate incomes. Priority is given to projects that create manufacturing jobs, add value to Iowa resources and/or increase exports. Preference is given to businesses that create or retain the greatest number of jobs with the least amount of program dollars. Projects must demonstrate a need for assistance. The only three valid criteria to determine need are: a financing gap, insufficient return on investment or location disadvantage.
New Jobs Tax Credit is a one-time, corporate income tax credit that is available to participants in the New Jobs Training (260E) Program. Iowa offers this credit as an incentive for businesses that provide additional training to employees and expand their workforce.
The Targeted Jobs Withholding Tax Credit is a pilot program that allows diversion of withholding funds paid by an employer to be matched by a designated pilot city to create economic incentives directed toward the growth and expansion of targeted businesses.
Angel Investor tax credits are offered to increase the availability and accessibility of venture capital, particularly for ventures at the seed capital investment stage.
The Butchery Innovation and Revitalization Fund includes $750,000 appropriated by the State of Iowa and administered by the Iowa Economic Development Authority (IEDA). The fund will provide financial assistance in the form of grants to businesses for projects relating to small-scale meat processing, licensed custom lockers and mobile slaughter units.
Iowa incentivizes the creation of Employee Stock Ownership Programs (ESOPs) to retain businesses. Companies with an ESOP can sell the business to its employees when the owners retire or start a new business. An ESOP allows owners to share equity with employees and provides a retirement plan for those employees. The Iowa Economic Development Authority (IEDA) helps Iowa business owners complete the first step of setting up an ESOP – a feasibility study conducted by an independent financial professional. IEDA reimburses 50% (not to exceed $25,000) of the cost incurred to obtain a feasibility study. Reimbursement is dispersed in two stages: half is released upon conclusion of the feasibility study and the remaining half after successful formation of the ESOP. Iowa offers a 50% reduction from state income taxes for the net gain from the sale of stock to an ESOP.
The High Performance Incentive Program (HPIP) allows for the transfer or sale of tax credits to another entity or individual effective July 1, 2021. For projects placed into service on and after January 1, 2021 a taxpayer may transfer up to 50% of the tax credit allowed. The taxpayer may make a transfer to one or more transferees, but the total of all transfers shall not exceed 50% of the taxpayer’s tax credit.
Kansas’ Promoting Employment Across Kansas Act is a discretionary tax-credit program up to ten years, the company may retain or be refunded 95% of the entity’s state withholding tax for PEAK-eligible employees if they create at least ten jobs in metropolitan counties or five in non-metropolitan counties within 2 years. PEAK requires with certain health care benefits to be paid by employer.
Kansas Business and Job Development Credit provides a tax credit equal to $100 for each qualified employee or $100 for each $100,000 in qualified investment limited to 50% of the tax on the qualified business facility income tax based upon the development of jobs and a capital investment.
Kansas law exempts the property tax on commercial and industrial machinery and equipment purchased or transferred into Kansas after June 30, 2006. The personal property tax exemption continues each year under the law. Personal property exemption can cover such items as: computers, desks & chairs, copiers, fax machines, business machinery, equipment used in manufacturing operations, and equipment used in warehousing.
Kansas awards grants to cities or counties to provide gap-financing for private businesses which create or retain permanent jobs, some repayment is required for all economic development categories, grants are made to cities and counties which then, in turn, loan funds to developing businesses, repaid funds are returned to the state revolving loan fund and may be used for infrastructure projects on a similar loan/grant basis, funding is capped at $35,000 per job created or retained with a maximum of $750,000 and a requirement for matching funds.
Industrial revenue bonds (IRBs) are issued by cities and counties to provide funds for credit-worthy companies to purchase land, pay the cost to construct and equip new facilities, or to purchase, remodel or expand existing facilities. IRBs allow for fixed-rate financing for the life of the bond for the project. The authority to approve the issuance comes from the governing body where the land site is located. Use of industrial revenue bonds will allow the construction of real property to be eligible for property tax abatement in Kansas, which is given by the local governing body. Kansas law allows for a maximum ten year real property tax abatement commencing the year after the bonds are issued. Another benefit of IRBs is a sales tax exemption. Statute K.S.A. 79-3606 exempts the cost of building materials and labor, as well as fixed items of machinery and equipment, from state and local sales taxes when IRBs are used.
Kansas Tax Increment Financing uses the increases in real estate tax revenues and local sales tax revenues to retire the bonds sold to finance eligible redevelopment project costs or to reimburse the developer on a pay-as-you-go basis, focuses on non-retail projects, monies raised through TIF may be used for eligible redevelopment project costs approved by cities such as for site preparation, infrastructure, parking, and land acquisition within the TIF district.
Delaware Strategic Fund (Grants and Loans) are performance-based grants that are available to companies creating numerous new jobs and investment as an incentive to locate a project in Delaware.
Florida Capital Investment Tax Credit is a 20-year tax credit against the business’ corporate income tax up to 5% of the eligible capital costs associated with large scale technology manufacturing project.
Five for Ten Program for Manufacturing Facilities – Investments greater than $50M in a manufacturing facility having $100M or more of preexisting investment in place prior to the new investment are valued at 5% of cost of the new investment for property tax purposes. The value of the land before any improvements is subtracted from the value of the capital addition, and the unimproved land value is not given salvage value treatment.
Manufacturing Inventory Credit offsets the corporate net income tax in the amount of property tax paid on raw materials, goods in process and finished goods manufacturing inventory.
High Technology Valuation Act (Data Centers) – Tangible personal property, including servers, directly used in a high-technology business or in an Internet advertising business, is valued for property tax purposes at 5% of the original cost of the property. Also, there is a sales tax exemption for all purchases of prewritten computer software, computers, computer hardware, servers, building materials and tangible personal property for direct use in a qualified high-technology business or internet advertising business.
Manufacturing Sales Tax Exemption available for purchases of materials and equipment for direct use in manufacturing are exempt from the 6% state sales and use tax and 1% municipal sales tax, including building materials and process equipment purchased for construction of a manufacturing facility.
Enterprise Zone Program offers businesses locating within a designated enterprise zones a maximum credit of up to $2,500 per new, permanent employee hired pursuant to the Act; or may be eligible for discretionary sales and use, income, and business privilege tax exemptions for up to five years, and the credit amount is calculated based upon number of jobs created and increment formula, capital investment levels, and employee training costs.
Industrial Access Program funds non-retail projects creating new investment and jobs with a project that needs new access must be on public right-of-way, allow normal public use, and comply with state standards for usage of funds, the project must acquire a local sponsor responsible for the project, and funding may not exceed the estimate cost of the project.
Jobs Act Investment Credit is a discretionary program allowing an eligible company to receive a credit of up to 1.5% annually of the qualified capital investment in an approved project for up to 10 years (projects in a target or jumpstart county may receive the credit for 15 years). The credit can be taken against the Alabama income tax liability, financial institution excise tax liability, utility taxes paid, and/or state 2.2% utility license tax. The credit has a five-year carry forward.
Jobs Act Jobs Credit is a discretionary program allowing an eligible company a cash rebate of up to 3% annually of the previous year’s payroll (not including fringe benefits) for eligible employees in Alabama for up to ten years. For companies employing at least 12% veterans, up to an additional 0.5% credit is available for the wages of veterans. Technology and underrepresented companies may receive an annual amount of up to 4%. Further, up to an additional 1% of the credit is available for companies in targeted counties.
Alabama offers a one-time, non-refundable, non-transferable tax credit of up to $1,000 for each new job created by small businesses located in Alabama.
Industrial Access Program funds non-retail projects creating new investment and jobs with a project that needs new access must be on public right-of-way, allow normal public use, and comply with state standards for usage of funds, the project must acquire a local sponsor responsible for the project, and funding may not exceed the estimate cost of the project.
Alabama provides for an apprenticeship tax credit in the amount of up to $1,250 per qualified apprentice (up to 10 apprentices annually) is available to employees who employ a qualified apprentice for at least 7 full months of the taxable year. Companies that employ a qualifying apprentice under the age of 18 may qualify for an additional $500 credit. The credit is nonrefundable, nontransferable, and cannot be carried forward.
Alabama provides for a refundable tax credit equal to 50 percent of an eligible taxpayer’s qualified railroad rehabilitation expenditures.
Brownfield Development Tax Abatement Act gives cities and counties the ability to abate the following: Non-educational city and county sales and use taxes; Non-educational state, city and county property taxes – up to 20 years; and Mortgage and recording taxes.
Growing Alabama Credit provides incentives to eligible Alabama taxpayers making contributions to Economic Development Organizations (EDO) for approved qualifying projects.
Alabama’s offers state and local sales and property (non-educational portion only) abatement of taxes up to 10 year for data center projects investing up to $200M within 10 years from commencement of the project; 20 years for projects that invest over $200M but less than $400M within 10 years from the commencement of the project; and 30 years for projects that invest over$400M within 20 years from the commencement of the project. Data center projects must create at least 20 jobs with an average annual compensation of $40,000, including benefits to qualify for the abatements.
Alabama Port Credit is a non-refundable, non-transferable discretionary credit incentivizing businesses to utilize Alabama’s port facilities with a one-time credit can equal up to $50 per twenty-foot-equivalent, $3 per net ton of bulk cargo, $0.04 per net kilogram for air-cargo, or $2.91 per vehicle equivalent unit (VEU); the credit may be carried forward for five years and may be applied against Alabama income tax liability, and to be eligible, the port user must engage in manufacturing, warehousing, or distribution, ship more than 10 TEU’s, 75 net tons, or 400 VEU for cargo measured by VEU or 15,000 kg of air cargo, and increase shipping volume of its cargo by more than 105% over the prior year
Business Investment (KBI) Program provides income tax credits and wage assessments to new and existing agribusinesses, headquarters operations, manufacturing companies, coal severing and processing companies, hospital operations, alternative fuel, gasification, energy-efficient alternative fuels, renewable energy production companies, carbon dioxide transmission pipelines 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.
Direct Loan Program (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.
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.
Kentucky Small Business Credit Initiative (KSBCI) is designed to generate jobs and increase the availability of credit by reducing the risks participating lenders assume when making loans to small businesses. Using three distinct credit enhancement programs, KSBCI will help lenders finance creditworthy small businesses that would typically fall just outside of their normal lending guidelines. Please click here for a listing of approved projects.
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 percent 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 Reinvestment Act (KRA) provides tax credits to existing Kentucky companies engaged in manufacturing, agribusiness, non-retail service or technology activities, headquarters operations, hospital operations, coal severing and processing, alternative fuel, gasification, energy-efficient alternative fuels, renewable energy, or carbon dioxide transmission pipelines 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 for owned facilities and $1,000,000 for leased.
Kentucky Investment Fund Act (KIFA) provides tax credits to individuals and companies that invest in eligible small businesses through venture capital funds that have been approved by the Kentucky Economic Development Finance Authority (KEDFA). Investors in KIFA approved funds may be eligible for a tax credit against Kentucky individual or corporate income tax or Kentucky corporate license tax.
Angel Investment Tax Credit offers a credit of up to 40 percent of an investment in Kentucky small businesses. Prior to investment, both the investor and small business must submit applications for certification. Each investment must be certified in advance, as well.
The Kentucky Small Business Tax Credit (KSBTC) 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 KSBTC program has a limited allocation of available tax credits.
Kentucky Enterprise Initiative Act (KEIA) is for new or expanded companies engaged in manufacturing, non-retail service or technology activities, agribusiness, headquarters operations, coal severing and processing, hospital operations, alternative fuel, gasification, energy-efficient alternative fuels, renewable energy production companies, carbon dioxide transmission pipelines, or tourism attraction projects 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, data processing equipment or flight simulation equipment.
Commonwealth Seed Capital, LLC, (CSC) is an independent fund that makes debt or equity investments in early-stage Kentucky business entities to facilitate the commercialization of innovative ideas and technologies.
Tax Increment Financing (TIF) is an economic development tool to use future gains in taxes to finance the current public infrastructure improvements for development that will create those gains.
Tax Back program provides sales and use tax refunds on the purchase of building materials and taxable machinery and equipment to qualified businesses investing the minimum required based on the tier in which the company locates and who either a) sign a job creation agreement under the Advantage Arkansas or Create Rebate programs within 24 months of signing the Tax Back agreement or b) have signed an Advantage Arkansas or Create Rebate agreement within the previous 48 months.
Enterprise Zone Program provides an income and franchise tax credits for businesses creating at least five full-time jobs and hiring at least 50% of those new jobs from four targets groups may receive a one-time $2,500 job tax credit per new job created and a 4% rebate of sales and use taxes paid on qualifying materials.
Additional Depreciation Program accelerates depreciation to substantially reduce business personal property taxes.
Angel Investment Tax Credit provides credits to investors who make capital investments in small businesses certified by the ACA
Quality Jobs Tax Relief provides up to $9,000 of income or premium tax credits over a three-year period for each net new job to the state and concurrent qualifying capital expenditures.
Qualified Facility Program offers a refundable income tax credit equal to eligible companies making a capital investment to establish or expand qualified facilities.
Research and Development tax credit provides an Arizona income tax credit for increased research and development activities conducted in this state.
Advanced Industries Accelerator Program: These programs support job creation and innovation for businesses creating advanced technologies and operating in one of Colorado’s seven advanced industries.
Micro Loan Program promotes economic development in Alaska by helping small businesses access needed capital.
California Forest Improvement Program (CFIP) – CalFIRE cost-shares with landowners planning or implementing forest management of sub-merchantable trees outside commercial timber operations.
Research & Development Tax Credit is available for businesses that paid or incurred qualified research expenses while conducting qualified research activity in California. Qualified research expenses include wages, supplies, and contract research costs.
Advanced Transportation and Manufacturing Sales and Use Tax Exemption offered through the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) to manufacturers that promote alternative energy and advanced transportation.
Timber Harvesting Partial Sales and Use Tax Exemption is offered by the California Department of Tax and Fee Administration (CDTFA for sales and purchases of equipment, machinery and their parts designed primarily for off-road use in commercial timber harvesting operations.
Sales and Use Tax Exemption for Agriculture is offered through the California Department of Tax and Fee Administration for the sale, storage, use, or other consumption of farm equipment, machinery and their parts.
Timber Harvesting Partial Sales and Use Tax Exemption is offered through the California Department of Tax and Fee Administration for sales and purchases of equipment, machinery and their parts designed primarily for off-road use in commercial timber harvesting operations.
Sales and Use Tax Exemption for Manufacturing is offered through the California Department of Tax and Fee Administration for certain manufacturing and research and development equipment purchases and leases.
Advanced Transportation and Manufacturing Sales and Use Tax Exemption
The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) offers a full sales and use tax exclusion to manufacturers that promote alternative energy and advanced transportation.
Advanced Transportation and Manufacturing Sales and Use Tax Exemption offered through the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) to manufacturers that promote alternative energy and advanced transportation.
Sales and Use Tax Exemption for Manufacturing offered by the California Department of Tax and Fee Administration for certain manufacturing and research and development equipment purchases and leases.
California Sustainable Energy Entrepreneur Development (CalSEED) Initiative provides small grant funding for entrepreneurs and researchers to demonstrate concept feasibility of their new clean energy technology ideas.
California Infrastructure and Economic Development Bank (IBank) CLEEN Center offers financing to public agencies and non-profit corporations to help achieve the State’s greenhouse gas reduction goals and increase market confidence in green investing.
Greenhouse Gas Reduction Grants and Loans promotes infrastructure development for recycling manufacturing, composting, and anaerobic digestion facilities in California that divert more materials from landfills and reduce greenhouse gas emissions. Grant funds also available for food rescue and food waste prevention projects that benefit disadvantaged communities.
United States Department of Agriculture (USDA) provides funding opportunities for rural small businesses through loans, loan guarantees, and grants.
Cool California Funding Wizard helps businessess find grants related to energy efficiency upgrades and rebates, with a particular emphasis on sustainable and environmentally-friendly business practices.
Hybrid and Zero Emission Truck and Bus Voucher Incentive Project reduces about half the incremental costs of purchasing hybrid and zero-emission medium-duty and heavy-duty trucks and buses. Vouchers range from $20,000 to $110,000, with additional funds available for fleets located in disadvantaged communities.
Enterprise Zone Program is a joint state-county business effort to stimulate—via tax and other incentives—certain types of business activity, job preservation, and job creation in areas where they are most appropriate or most needed. The program includes: a seven year exemption from general excise taxes on gross proceeds; an 80% first year income tax abatement (decreasing 10% each year) and an income tax credit equal to 80% of unemployment taxes paid the first year (decreasing 10% per year).
Opportunity Zone Program provides incentives for investors to re-invest unrealized capital gains into Opportunity Funds in exchange for temporary tax deferral and other benefits. The Opportunity Funds will then be used to provide investment capital in certain low-income communities.
Hawaii State Trade Expansion PROGRAM (HISTEP) is a comprehensive program designed to assist Hawaii small businesses with their export development. The goal is to increase the number of small businesses that want to export as well as the value of exports for those small businesses that currently export.
Hawaii Small Business Innovation Research Program (SBIR) provides small businesses the opportunity to win federal R&D awards. Hawaii-based companies that receive federal Phase I feasibility study SBIR awards can apply for funds from HTDC’s Hawaii SBIR Matching Grant program. The matching grants provide up to 50% of the Phase I award to assist companies with enhancing their Phase I project development, compete for the more lucrative Phase II awards to typically conduct prototype development, and ultimately reach successful commercialization. Hawaii-based companies new to SBIR can apply for funds from HTDC’s Hawaii SBIR Phase 0 Grant program. The grant provides up to $3,000 to companies submitting a competitive Phase I SBIR application. The purpose of the Phase 0 Grant is to assist applicants strengthen their proposal, e.g. Through professional grant writing assistance. This grant is open to Hawaii companies who have: a) Submitted fewer than three SBIR applications and b) demonstrate financial need.
Hawaii Enterprise Zones Partnership is a joint state-county effort intended to stimulate—via tax and other incentives—certain types of business activity, job preservation and job creation in areas where they are most appropriate or most needed. Up to six zones can be designated per county. If a business (or a branch of business) is eligible and is located in an Enterprise Zones (EZ), it can reduce its state taxes and receive other county benefits for up to seven years by satisfying the EZ hiring and gross receipts requirements.
Foreign Trade Zone #9 provides duty-free treatment for items that are processed in FTZ and then re-exported. Duty payment is also deferred on items until they are brought out of the FTZ for sale in the U.S. market. It helps to offset customs advantages available to overseas producers who compete with domestic industry.
INNOVATE Hawaii assists manufacturers looking to improve their business and are willing to invest time and resources to grow their company. INNOVATE Hawaii builds the strength and competitiveness of Hawaii manufacturers through an array of programs and services, including coaching and training, consulting, collaboration-focused industry programs, and grant opportunities.