Kentucky Industrial Development Act (KIDA)

The Kentucky Industrial Development Act (KIDA) provides tax incentives to new or expanding manufacturing operations that invest at least $100,000 in the facility, employ at least 15 new full-time Kentucky residents and meet certain salary requirements.

The business can recoup up to 100% of annual debt service costs for up to 10 years for the financing of land, buildings, site development, building fixtures and equipment associated with the project. The company must acquire the real estate through either transfer of title or through a capitalized lease. Eligible equipment is limited to $10,000 in credits per new job created.

Benefits include a 100% waiver of state corporate income tax liability, OR the retention 3% of the gross wages of the new employment generated by the project as a credit against state occupational taxes.