Kentucky Hospital Business Incentives

502.564.7670
econdev@ky.gov

The Kentucky Cabinet for Economic Development provides incentives for businesses in Kentucky in the form of tax credits, sales and use tax refunds, and cash grant reimbursements. Hospital eligibility was approved during the 2021 legislative session, and rural hospitals are encouraged to participate.

Incentives include:

• Kentucky Business Investment Program (KBI) - Income tax credits and wage assessments to new and existing businesses that locate or expand operations in Kentucky
• Kentucky Enterprise Initiative Act (KEIA) - Refund of Kentucky sales and use tax paid by approved companies for building and construction materials, equipment used for research and development, data processing equipment, and flight simulation equipment
• Kentucky Reinvestment Act (KRA) - Tax credits on eligible reinvestment into equipment and related cost expenditures
• Bluegrass State Skills Corporation training - Grants and/or tax credits for training a minimum of 3 employees on upgrading work skills and occupational instruction

Eligible participants are Kentucky hospitals licensed with Cabinet for Health and Family Services (CHFS) that are in good standing and qualify with all program requirements.

Incentives vary by program and may be based on investment amount and the number of full-time jobs created.

A fact sheet describing each program is provided on the Kentucky Business Incentives website.

Email econdev@ky.gov or call 502.564.7670 to discuss the application process.