When undergoing financial due diligence for any start-up project throughout the Commonwealth of Kentucky, the potential of the United States Immigrant Investor Program, or even the “EB-5” visa, should be thought about along with an economic incentive package administered by 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 meet the criteria set forth in the empowering regulations from the Code of Federal Regulations and will include, amongst others, that the investment has to be inside a new commercial enterprise. The commercial enterprise could be any to make money activity and must create or preserve ten full-time jobs for qualifying U.S. workers within a couple of years from the immigrant investor’s admittance to the United States. Further, a purchase through the EB-5 investor to the commercial enterprise must satisfy the minimum amount of investment. Such level is normally $1,00,000 U.S., but can decrease to $500,000 in case the investment is carried out through a regional center and in a targeted employment area or a rural area. Eligible investment projects can seek funding for the start-up capital requirements by using a portion of EB-5 investor dollars as long as the investor program criteria have been met.
Further, any start-up project within the Commonwealth of Kentucky should seek an economic incentive package through the Cabinet. Such packages can be by means of industrial revenue bonds, tax increment financing or tax abatement incentives. Generally, new facilities with at least $100,000 U.S. in eligible costs and creating at least ten new full time jobs for Kentucky residents may be entitled to the generous regulations and tax breaks. Such tax abatements might be in the form of a decrease in devipky29 payroll withholdings for the approved projects or tax credits for Kentucky sourced tax. The eb5 regional center sets forth certain other minimum requirements for example minimum employee benefits to the project’s employees.
The employee benefits definition is “non-mandated payments by an approved company because of its 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, an application showing the organization information, project details including lease or land/building costs, equipments costs and employee information should be submitted. Such application needs to be optimized in order to gain the best possible tax incentives. If a company commits to establishing a project in the Commonwealth of Kentucky just before becoming an approved project company throughout the state, then such company could be ineligible for your tax incentive benefits offered by the Cabinet. The KBIA is fundamentally an inducement to get new investments to Kentucky.
Any new start-up project within the Commonwealth of Kentucky should examine the feasibility of utilizing investment visa along with the perfect tax incentive package. As it is currently a hardship on companies to gain access to conventional financing, EB-5 investors might be the source of bridge financing to get needed projects launched.