State program
Kentucky Qualified Research Facility Tax Credit
A construction-focused incentive for building or equipping facilities used for qualified research in Kentucky.
Program overview
Rather than crediting research wages and supplies, Kentucky targets the capital side of research investment. The credit applies to the cost of constructing, remodelling, equipping or expanding facilities used for qualified research as defined under IRC Section 41. This makes it complementary to the federal credit: a company can claim federal credits on its research labour while claiming Kentucky credits on the laboratory it builds. Kentucky also offers a separate sales and use tax incentive for certain research equipment.
Eligibility
Corporations and individuals that construct or equip a qualified research facility located in Kentucky and use it for research meeting the federal definition.
Benefits
Non-refundable credit against Kentucky income tax and limited liability entity tax.
Find out what your research actually qualifies for
A scoping conversation takes thirty minutes and costs nothing. You leave with a view on eligibility, likely credit range and the documentation you would need.