Kentucky Investment Fund Act (KIFA)

The Kentucky Investment Fund Act, or KIFA, sits under the Kentucky Economic Development Finance Authority and gives personal and corporate investors a tax credit for putting money into KEDFA-approved investment funds. Its purpose is to direct capital into Kentucky small businesses with fewer than 100 employees, especially technology-related ventures that need patient early growth capital. The credit is 40 percent in enhanced counties and 25 percent elsewhere. For qualified investments approved on or after January 1, 2022, the credit can first be claimed in the tax year the investment is made by the fund, no taxpayer may use more than half of the credit in a single year, and unused credit carries forward for up to 15 years. KIFA is built for investors rather than operating companies, so the fit is strongest where a fund is raising capital for Kentucky businesses and can document KEDFA approval. The route is most useful when the investor wants a statutory incentive tied to long-horizon venture investment, and the practical constraint is that the underlying businesses must stay under the 100-employee ceiling.

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