Kentucky Enterprise Zone Program
     

		Northern Kentucky Enterprise Zones
		Covington Enterprise Zone
		Newport Enterprise Zone
		About the Enterprise Zone Program
		Employee Certification
		Enterprise Zone Employee Tax Credit

       The Northern Kentucky Enterprise Zones

There are two Enterprise Zones in Northern Kentucky, the Covington Zone and the Newport Zones. The Enterprise Zone Program in Northern Kentucky is a collaborative effort between the Kentucky Department for Employment Services (DES), the Kentucky Department of Revenue and the Kentucky Enterprise Zone Authority and local Economic Development and Planning and Zoning.  

Phyllis Bruning, Director of the Kentucky Enterprise Zone Authority may be reached by telephone at 502-564-7670, by Fax at 502-564-7697 or by email to pbruning@mail.state.ky.us 

William Young, Department for Employment Services, is responsible for both Northern Kentucky Zones. Mr. Young will assist you with your monitoring, employee certification, and employee recruitment. He may be reached by telephone at 859-292-6666 or by fax at 859-371-5103. Or you may email your questions to William.Young@mail.state.ky.us. 

         Covington Enterprise Zone

The Covington Zone was created in February of 1984 and is currently 3,357 acres, all of which is within the Covington City limits. Ella Frye, Economic Development Director, is the Covington Enterprise Zone Administrator.  
Ms Frye may be contacted at 859-292-2163, by Fax to 859-292-2106 or by email to ellabro@city-of-covington.com. 

         Newport Enterprise Zone

The Newport Zone, created in November of 1986, is currently 14,7795 square miles, incorporating areas in the cities of Dayton, Bellevue, Newport, Wilder, Southgate and Highland Heights Ft. Thomas, Silver Grove.

Bonnie Geisler with the Campbell County Fiscal Court Planning and Zoning is the Enterprise Zone Coordinator of the Newport Zone.  To file an application or make inquires regarding this zone you may contact Ms. Geisler at
859-581-1777, by fax at 859-292-3888, or by email to: bgeisler@campbellcountyky.org.  

        About the Enterprise Zone Program:

The Kentucky Enterprise Zone Program provides special state and local tax incentives and regulatory relief to new and existing businesses located within the zone. The program was created to stimulate business and industrial growth in economically distressed areas. 

The state tax incentives offered to a business located within the enterprise zone and certified as an enterprise zone qualified business are as follows:

Building materials used in remodeling, rehabilitation, or new      construction within the zone area are exempt from sales and use     taxes.

New and used machinery and equipment purchased, leased or     rented and used by a qualified business within the enterprise zone     are exempt from sales and use tax.

Commercial vehicles purchased and used by a qualified business     solely for business purposes shall be exempt from motor vehicle     usage tax.

Other vehicles which are not defined as commercial vehicles     purchased and used by a qualified business solely for business     purposes are exempt from motor vehicle usage tax, limited to the     first $20,000 of the retail price of the vehicle.

A qualified business shall be allowed a credit against the tax     levied, pursuant to KRS 141.040, equal to 10% of the wages paid     to each employee who has been unemployed for at least 90 days     or who has received public assistance benefits, based on need       and intended to alleviate poverty, for at least 90 days prior to     being employed with the qualified business, up to $1,500 per     employee.  Any unused credit may be carried forward for up to     five (5) years.

A local government has the option to levy an ad valorem tax rate     on qualified property within the zone of one-tenth of one cent     (.001cent) upon each $100 of value.

Other local incentives offered by each individual enterprise zone.

Incentives provided by local government include moratoriums on tax assessments of rehabilitated structures, and waivers or reductions of permitting and licensing fees.

In order to receive these benefits, a company must be located in the Enterprise Zone and be certified by the Kentucky Enterprise Zone Authority. To be certified, each company must meet one of the following criteria:

All certifications and monitoring activities are done by the Kentucky Enterprise Zone Authority in conjunction with the Department for Employment Services.

        The Enterprise Zone Employee Tax Credit

Effective for employees hired on or after July 14, 1992, a corporation certified by the Kentucky Enterprise Zone Authority as a qualified business is allowed a credit against the tax imposed by KRS 141.040 equal to 10 percent of eligible wages (first $15,000 of wages paid to each employee who has been unemployed for at least 90 days or has received public assistance benefits, based on need and intended to alleviate poverty, for at least 90 days prior to employment with the qualified business). Hiring employees who live within the zone allows the employer to meet their mandates to be certified but does not allow the employer to claim a tax credit. Use the Northern Kentucky Enterprise Zone Street Guides to determine if your employee lives within the Covington Enterprise Zone or the Newport Enterprise Zone.

Schedule EZC, Form 720, should be filed to reflect the computation of the above credit earned for any taxable year during which the corporation paid eligible wages regardless of whether the corporation has a liability for that year. This form should also be filed any year for which a carryover is claimed regardless of whether any credit is earned in the current year. The credit cannot exceed $1,500 per employee, and any portion of the credit not used in the year earned may be carried forward for up to five years.

        Employee Certification

Each employee on which the corporation claims the credit must have been certified by the Kentucky Department for Employment Services (DES), as meeting one of the above criteria. This certificate is obtained by the employee and employer completing the appropriate portions of the Enterprise Zone Program Employee/Employer Certification Form and obtaining the signature of authorized DES personnel. A copy of this certificate must be maintained by the corporation.

Department for Employment Services staff are also responsible for conducting an Employer Orientation to each employer seeking certification to explain the role of DES in the Enterprise Zone Program. During the Orientation the employer will be informed of the services available to them through DES and of the procedures to follow to ensure they hire and maintain the percentage of employees from the targeted workforce.           

320 Garrard Street
Covington, KY  41011-1790
Phone 859-292-6666
Fax 859-292-6675

8020 Veterans Memorial Drive
Florence, KY  41042-1895
Phone 859-371-0808
Fax 859-371-5103