$3 MILLION IN TAX CREDITS AVAILABLE TO INVESTORS IN SMALL KENTUCKY BUSINESSES 

(Frankfort, Ky) - Kentucky's Office for the New Economy announced today the availability of $3 million in tax credits to qualified personal and corporate investors as part of the Kentucky Investment Fund Act. This investment program was revitalized during the 2002 General Assembly to encourage the establishment of small businesses, and the development of new products and technologies in the state though capital investments. The deadline for fiscal year 2003 applications is February 20, 2003.

The Kentucky Investment Fund Act (KIFA) offers a 40% tax credit to qualified investors in approved investment funds. The minimum size of an approved fund is $500,000 and must have no less than four unaffiliated investors. Qualified investments include Kentucky-based small businesses with 50% of the company's assets, operations and employees located in the state; a net worth less than $5 million ($10 million if knowledge-based); and no more than 100 employees.

"A thriving venture capital community is a key component of any developing new economy. Without venture capital investments, good ideas and technology are not commercialized," said Dr. William G. Brundage, Kentucky's Commissioner for the New Economy. "KIFA is an important part of the state's effort to increase the size and vitality of our venture capital community so that the private sector amply supports our state's entrepreneurs,"

The state's KIFA review committee will evaluate applications based on factors including the fund's business plan, relevant investment experience of the applicant, and an oral presentation.

More information on KIFA along with an application can be found on the Office for the New Economy's web site at http://www.one-ky.com/