KentuckyHB 5772026 Regular SessionHouseWALLET

AN ACT relating to economic development.

Sponsored By: Josh Branscum (Republican)

Signed by Governor

Economic DevelopmentFundsInformation TechnologyScience And TechnologySmall BusinessState AgenciesTechnology

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Clear rules for Kentucky startup investments

The law sets clear rules for who qualifies for startup help and investments. A small company has 50 or fewer employees; a medium company has 51 to 150. Early-stage means just starting with new products and first customers; high-growth shows fast, sustained gains. A Kentucky-based company has its main office in Kentucky or at least 50% of property and payroll here. For investments, a small business must have net worth $5,000,000 or less, or net income $3,000,000 or less in each of the two prior years; knowledge-based firms may have up to $10,000,000 in net worth. It also must have no more than 100 employees, keep more than 50% of assets, operations, and employees in Kentucky, and be (or become) mainly engaged in a qualified Kentucky activity. A qualified investment is at least $10,000 in cash, the investor receives stock, partnership interest, or a convertible instrument, and securities laws are followed.

Statewide hubs to help startups

The law creates the Kentucky Entrepreneurship and Innovation Hub Program in the Office of Entrepreneurship and Innovation. Hubs connect entrepreneurs with experts, faculty, and investors. They help with market research, prototypes, business plans, grants, and finding capital. The Office runs a statewide network, sets uniform applications and rules, and can fund central services. The executive director may contract with a science and technology group to manage the program. A hub is the regional headquarters, and the program uses entrepreneur-led mentoring to grow companies.

Sponsors & Cosponsors

Sponsor

Josh Branscum
Republican • House

Cosponsors

Jim Gooch Jr.
Republican • House
Vanessa Grossl
Republican • House

Roll Call Votes

All Roll Calls

Yes: 135 • No: 0

Senate vote • 3/31/2026

3rd reading, passed

Yes: 37 • No: 0

House vote • 2/18/2026