Kentucky Angel Investment Tax Credit (KAITC)

The Kentucky Angel Investment Tax Credit, or KAITC, sits under KEDFA and is aimed at investors who make cash equity investments in qualified Kentucky small businesses. It is not a company grant; it is an investor-side tax credit that helps early capital flow into startups and other small firms in the state. The credit rate is 40% in enhanced counties with high unemployment and 25% elsewhere. The program has a $3 million annual cap and a $25,000 per-applicant cap, with a minimum investment of $10,000. Credits are transferable to individual taxpayers and can carry forward for up to 15 years. For 2026, applications opened on December 12, 2025, and businesses must recertify each year even if they were already approved in a prior cycle. KAITC is most useful when a Kentucky startup can match an eligible investor with a qualified small-business certification and a clean equity story. The program favors investors and companies that can move quickly on annual paperwork and preserve eligibility across refresh cycles. Because the cap is small relative to the state's larger incentive programs, the best use case is early capital formation, not large expansion finance.

Each grant below is a distinct funding opportunity with its own eligibility, scope, and deliverables.