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Welcome to the Bluegrass State
Kentucky offers attractive advantages for your new or expanding business in the U.S.
Following Fortune 500 companies feel home in the Bluegrass State:
Excellent Infrastructure and Utilities
Lowest electric rates
Kentucky industries enjoys still the lowest price for electric power in the country since 7 years. Information from the U.S.government’s Energy Information Administration shows
that Kentucky’s rates are at least 12 percent lower than any other states east of the Mississippi River and more than one-third lower than the U.S. average.
For more on Kentucky’s low electric rates, click here Kentucky is well served by its abundant coal reserves, its proximity to the natural gas pipeline corridor, and its wealth of water resources.
Click here for the details about Kentucky’s utilities.
Telecommunications networks
Kentucky is served by one of the most extensive telecommunications networks in the country, with fiber optic, wireless, digital microwave and satellite technologies integrated into a sophisticated infrastructure capable of handling the most demanding needs. Connect Kentucky is a quasi-public alliance of leaders in private industry, government, and universities working together to develop the most effective technological infrastructure for Kentucky. A key step in that drive is to extend broadband Internet service to all of Kentucky by 2007.
Logistical advantages
Few states can offer the logistics for which Kentucky is blessed. Kentucky is the hub of “Auto Alley,” that stretch of Middle America running from Michigan to the Deep South. Five interstates, numerous U.S. highways and a network of limited-access state parkways serve the state. Kentucky borders are within 600 miles of two-thirds of the nation’s population, personal income, and manufacturing business establishments.
Kentucky is home to two international airports. UPS has its worldwide air hub in Louisville, and its presence has been a catalyst for attracting over 100 of other businesses that rely on logistics. Over 4 billion packages the Louisville airport in 2006. This UPS hub is also specialized in Bio-Logistics.
Cincinnati / NKY Airport, serving over 16 million passengers per year, offers over 500 daily departures to 120 cities worldwide. Half of the U.S. population and manufacturing base are located within 1 hour's flight, and 2/3 of the U.S. top markets are within 90 minutes. Regional airports connecting with the big hubs, e.g. Bluegrass Airport (Lexington), Barkley's (Paducah) or Owensboro-Daviess County Airport. About 50 other public airports complete the network.
CSX, Norfolk Southern, and Canadian National railroads, augmented by a regional and local distribution network of railroads and freight facilities, allow the state to provide state-of-the-art rail service. Rail transportation is extensively intermodal, affording efficient, convenient connections across the country.
Kentucky is the center of a port and waterways system that offers globally competitive, inexpensive year-round freight transport for bulk materials and containerized freight.
Ohio and Mississippi rivers flow along Kentucky’s borders and provide direct access to the agricultural markets in Midwestern and North Central states, to the industrial and consumer markets of the Northeast and via New Orleans, Mobile and the Gulf of Mexico to the South.
Ports of Entry of the U.S. customs are conveniently located in Louisville, Erlanger, Owensboro and Lexington. Two Foreign-Trade-Zones (FTZ) are in operation in Louisville and the Northern Kentucky area.
Kentucky's various logistics options offer unique advantages for transportation, distribution and export, and provides new opportunities for capitalizing on North American markets and global trade. Kentucky's full complement of well-developed terminals, riverports, enterprise zones, warehouse facilities, ports of entry and foreign-trade zones linked with an intermodal transportation system put Kentucky in an attractive market position in the Mid-South of the U.S.
Please email today for your copy of our Kentucky industry profile "Logistics & Warehousing".
Competitive Taxes and Financial Incentives for Foreign Investors
Please email us today for your copy of our most recent tax and business incentives information.
Kentucky's Tax Structure
As an existing or prospective business owner, understanding your business tax situation is a necessary aspect of running your business. Business taxes help to support government programs at the local, state, and federal level. As such, a business owner should stay aware of pending legislation at those levels that may impact their business. Sales and use taxes, payroll taxes and withholding taxes, property taxes, and corporation and income taxes are just some of the types of taxes that you may encounter as a business owner.
The tax environment is business-friendly. Corporate Income tax is between 4 and 6%, depending on the turnover executed in the state; sales tax is 6% and the personal tax is also about 4 to 6%, but includes various exemptions based on the individual situation of the tax payer.
The past years, Kentucky completed the first comprehensive overhaul of its tax system in half a century. Among other things, the corporate license tax and the personal property tax on intangibles were eliminated. The individual income taxes were reduced and the state created tax incentives for economic development and environmental initiatives.
Kentucky Business Incentives and Financial Programs
The Bluegrass State's pro-business climate provides a number of incentives for businesses. The Kentucky Economic Development Finance Authority (KEDFA), established within the Cabinet for Economic Development to encourage economic development, business expansion, and job creation, provides financial support through an array of financial assistance and tax credit programs. Helping businesses in this way furthers the commonwealth's goals of achieving long-term economic growth and full employment for its citizens.
KEDFA approval is required for participation in the loan and tax incentive programs, except the Skills Training Investment credits, which are approved by the Bluegrass State Skills Corporation (BSSC).
Bluegrass Workforce Training Programs
The Grant-in-Aid Program allows Bluegrass State Skills Corporation to administer and fund Kentucky’s industry-specific training efforts through grants approved by the BSSC Board of Directors; to act as a broker of skills training and employment services; to facilitate and fund new training programs; and to administer any special state appropriations for industry-specific training. Its purpose is to improve and promote employment opportunities for Kentucky residents.
The BSSC has various programs available to meet a companies workforce training needs: