With small businesses playing an increasingly important role in Kentucky’s economy, owners are looking for ways to strengthen their operations. Advocates of the Angel Investment Tax Credit Program say the initiative encourages investors to fund small businesses in the sectors of science, research, and information technology.
Executive Director of KY Innovation, David Brock, said the program is set apart from other tax cut offerings because of its large incentive.
“The big thing to know about the program is the level of investment that is incentivized. So, potential credit amounts are equal to 25 percent investment in non-enhanced county businesses and 40 percent in enhanced counties,” said Brock.
Since the program’s inception in 2021, 373 jobs were added as a direct result. Additionally, Brock says over $57 million has been invested into small businesses resulting in nearly $20 million in tax credits for investors.
Brock said one business that has benefited from the program is based in Owingsville.
“Blackbox Energy Systems in Bath County. This is a relatively new company and they have used the angel tax credit, their investors have used the angel tax credit, I believe, for every investment they have received thus far,” said Brock.
More information on the tax credit can be found on the Kentucky Cabinet for Economic Development’s website.