When undergoing financial research for a start-up project within the Commonwealth of Kentucky, the potential for the United States Immigrant Investor Program, or even the “EB-5” visa, should be considered along with an economic incentive package administered with the Kentucky Cabinet for Economic Development (the “Cabinet”) through its development agency, the Kentucky Economic Development Finance Authority (“KEDFA”).
Eligible projects for eb5 investment must satisfy the criteria set forth within the empowering regulations from the Code of Federal Regulations and include, amongst others, how the investment has to be in a new commercial enterprise. The commercial enterprise could be any for profit activity and must create or preserve ten full time jobs for qualifying U.S. workers within 2 yrs in the immigrant investor’s admission to the United States. Further, a purchase from the EB-5 investor in to the commercial enterprise must match the minimum amount of investment. Such level is generally $1,00,000 U.S., but can decrease to $500,000 when the investment is finished through a regional center and inside a targeted employment area or even a rural area. Eligible investment projects can seek funding because of its start-up capital requirements having a part of EB-5 investor dollars as long as the investor program criteria have already been met.
Further, any start-up project in the Commonwealth of Kentucky should seek an economic incentive package through the Cabinet. Such packages may be such as industrial revenue bonds, tax increment financing or tax abatement incentives. Generally, new facilities with no less than $100,000 U.S. in eligible costs and creating no less than ten new full time jobs for Kentucky residents may qualify for the generous tax breaks. Such tax abatements can be as a decrease in devipky29 payroll withholdings to the approved projects or tax credits for Kentucky sourced income tax. The eb5 regional center sets forth certain other minimum requirements for example minimum employee benefits for the project’s employees.
The worker benefits definition is “non-mandated payments by an approved company for the full time employees for health insurance, life insurance, dental insurance, vision insurance, defined benefits, 401(k), or similar plans.” To be entitled to the KBIA incentives administered by KEDFA, a software showing the company information, project details including lease or land/building costs, equipments costs and employee information needs to be submitted. Such application should be optimized to be able to gain the best possible tax incentives. In case a company commits to establishing a task throughout the Commonwealth of Kentucky prior to being an approved project company in the state, then such company may be ineligible to the tax incentive benefits provided by the Cabinet. The KBIA is fundamentally an inducement to attract new investments to Kentucky.
Any new start-up project within the Commonwealth of Kentucky should examine the feasibility of utilizing investment visa in conjunction with the best possible tax incentive package. Because it is currently hard for companies gain access to conventional financing, EB-5 investors could possibly be the source of bridge financing to acquire needed projects launched.