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Tax incentives approved by Kentucky house for certain businesses

Kentucky lawmakers have decided to extend tax incentives to help spur on expansion projects being conducted by AK Steel and General Electric. Those sponsoring the bill hope that the bills will protect high-paying jobs that are being offered by these corporations. The bills reportedly passed without opposition.

It is estimated that the measures could save GE $15 million per year through tax incentives. The bills would also provide AK Steel an additional two years to take on projects while also qualifying for incentives under the Kentucky Industrial Revitalization Act.

These companies bring jobs to the Kentucky area. GE employs Kentucky citizens from 40 different counties. GE has also invested hundreds of millions of dollars into Appliance Park which has resulted in 6,000 individuals being employed. And one legislator stated that AK Steel was a crucial contributor to the economy in northeastern Kentucky.

It's good to see that Kentucky legislators recognize the benefits that companies provide and are willing to put such tax incentives into place. As businesses play such an important role, companies also have some say with the legislature when it comes to the kind of taxes that these businesses will need to pay.

The taxation issues can be complex, however, and it's good for officers and directors of companies to know about every tax incentive for which they can take advantage. Tax attorneys can help businesses along during every transition and make certain that profits are not lost due to excessive tax liabilities. This can include making certain that a company complies with tax regulations in the event of an expansion or merger. It can also mean representation in the event of a tax dispute.

Source: Kentucky.com, "House OKs bills to extend employer tax incentives," Bruce Schreiner, March 10, 2014

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