Kentucky Bluegrass State Skills Corporation (BSSC) — Skills Training Investment Credit & Grant
Kentucky Bluegrass State Skills Corporation (BSSC) / Kentucky Cabinet for Economic Development
Up to $25,000/company/yr
Kentucky pays for worker training — grants up to $25K + 50% tax credit
Kentucky's BSSC reimburses companies for the cost of skills training for new and existing employees. Two pathways: direct grants for companies that are new to Kentucky or significantly expanding, and the Skills Training Investment Credit (STIC) providing a state income tax credit of 50% of training costs. Grants typically up to $25,000 per company per year.
- Funding type
- Grant
- Level
- State
- Amount range
- $1,000 – $25,000
- Realistic amount
- $5,000–$20,000 for direct grants; STIC value varies with training spend
- Deadline
- Rolling — applications accepted throughout the year through BSSC or regional Kentucky Workforce Development office.
- Status
- active
- States
- KY
- Payment model
- reimbursement
Who qualifies
- Business must be located in Kentucky with Kentucky-based employees
- Company must be new to Kentucky, expanding Kentucky operations, or investing in skills to retain workers
- Training must be job-related and skills-specific — not generic management development
- Grant pathway: business must be approved by BSSC before training begins
- STIC pathway: business must be subject to Kentucky income tax; credit claimed on annual return
- Any industry and any business size eligible; priority to manufacturing, automotive, and high-demand sectors
Hard requirements
- Must be incorporated
What it covers
Eligible expenses
- Third-party training provider fees and tuition
- Curriculum development costs for customized training
- Instructor costs for in-house training
- Training materials, textbooks, and supplies
- Certification and credentialing exam fees
Ineligible expenses
- Trainee wages during training
- Training for employees outside Kentucky
- Generic coursework (general management, soft skills) without occupational skill development
- Equipment for production use
- Safety training mandated solely by law
- Pre-employment screening costs
How to apply
-
1
Contact BSSC or regional office
Contact BSSC or your Kentucky Workforce Development regional office before training begins. For the grant pathway, pre-approval is required. Describe your hiring/expansion event, training needs, and workforce size.
~2 hrs
-
2
Complete BSSC application
Submit a BSSC training application documenting the employees to be trained, training content, training provider, and expected costs. For grant pathway, BSSC approves before training starts. For STIC, keep records for the tax credit claim.
~5 hrs
-
3
Conduct training
Deliver training using an approved provider — third-party trainer, community college, or qualified internal staff. Track all training hours, costs, and completion records for each employee.
~3 hrs
-
4
Submit documentation for reimbursement or credit claim
For grant: submit training completion documentation and invoices to BSSC for reimbursement. For STIC: claim the 50% credit on the Kentucky income tax return for the year training costs were incurred.
~4 hrs
Contact BSSC before training starts — grant pathway requires pre-approval. For smaller companies, the STIC credit may deliver more value than the capped $25K grant if training spend is high.
Deadline & timing
BSSC processes applications on a rolling basis. For the STIC tax credit, the credit is claimed on the annual state income tax return — no separate deadline beyond the tax filing. For direct grants, contact BSSC at the outset of a hiring or training event.
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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.