154.23-045 Application of eligible company to become approved company and expand existing business -- Base levels for eligible credits -- Exemption of <br>employees from assessment -- Increase in number of employees at site -- Tax -- <br>Additional agreements. (1) If an eligible company operates an existing business in a qualified zone, and wishes to expand that business within the zone, the eligible company may submit an <br>application to the authority to become an approved company under KRS 154.23-<br>025. (2) If the eligible company under subsection (1) of this section becomes an approved company, the authority shall determine a base level of employment in the <br>Commonwealth, a base level of state income tax liability, a base level of limited <br>liability entity tax liability under KRS 141.0401, and a base level of manufacturing <br>or service or technology activity, as applicable, of the approved company for <br>determining eligible credits for the approved company's project during the term of a <br>tax incentive agreement or service and technology agreement. The base level shall <br>be determined by taking into consideration any seasonal fluctuations or aberrations <br>of employment levels during the preceding three (3) years. Notwithstanding the <br>determination of a base level of employment in the Commonwealth, no qualified <br>statewide employee who is an employee of this business prior to the date of the <br>preliminary approval by the authority as prescribed in KRS 154.23-030 shall be <br>subject to assessment. (3) The authority shall identify, by name, all of the existing qualified statewide employees employed by the eligible company prior to preliminary approval, and <br>these employees shall be exempt from the assessment. If any of these employees <br>cease working in the activity, then another qualified statewide employee shall be <br>added to the base level of employment, based on the earliest date of entry into the <br>work force, and this employee shall be exempt from the assessment. The authority <br>may negotiate with the approved company a different method of determining the <br>base level of employment that would yield a more equitable result for the approved <br>company, the Commonwealth, local jurisdictions, and the qualified statewide <br>employees. (4) To become eligible for inducements, the approved company shall create and maintain above the base level of employment in the Commonwealth, an increase at <br>the site of the project of at least ten (10) new full-time qualified employees. (5) The approved company shall continue to pay to the Commonwealth, on an annualized basis during the term of the tax incentive agreement or service and <br>technology agreement, as applicable, the base level of income tax, and the limited <br>liability entity tax imposed under KRS 141.0401, adjusted on an annual basis to <br>reflect changes in the consumer price index. The excess income tax and limited <br>liability entity tax imposed under KRS 141.0401 owed may be offset by the income <br>tax credit provided in KRS 154.23-050. (6) If any approved company expands in a qualified zone because of an increase in business or because of the commencement of a new line of business, it may be <br>eligible, at the discretion of the authority, to negotiate a separate, additional tax incentive agreement or service and technology agreement to cover the expanded <br>business under the same conditions as authorized for an expansion in this section. Effective: June 28, 2006 <br>History: Amended 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 49, effective June 28, 2006. -- Amended 2002 Ky. Acts ch. 338, sec. 30, effective July 15, 2002. -- Created <br>2000 Ky. Acts ch. 528, sec. 9, effective July 14, 2000. Legislative Research Commission Note (6/28/2006). 2006 (1st Extra Sess.) Ky. Acts ch. 2, sec. 73, provides that "unless a provision of this Act specifically applies to an <br>earlier tax year, the provisions of this Act shall apply to taxable years beginning on or <br>after January 1, 2007."
154.23-045 Application of eligible company to become approved company and expand existing business -- Base levels for eligible credits -- Exemption of <br>employees from assessment -- Increase in number of employees at site -- Tax -- <br>Additional agreements. (1) If an eligible company operates an existing business in a qualified zone, and wishes to expand that business within the zone, the eligible company may submit an <br>application to the authority to become an approved company under KRS 154.23-<br>025. (2) If the eligible company under subsection (1) of this section becomes an approved company, the authority shall determine a base level of employment in the <br>Commonwealth, a base level of state income tax liability, a base level of limited <br>liability entity tax liability under KRS 141.0401, and a base level of manufacturing <br>or service or technology activity, as applicable, of the approved company for <br>determining eligible credits for the approved company's project during the term of a <br>tax incentive agreement or service and technology agreement. The base level shall <br>be determined by taking into consideration any seasonal fluctuations or aberrations <br>of employment levels during the preceding three (3) years. Notwithstanding the <br>determination of a base level of employment in the Commonwealth, no qualified <br>statewide employee who is an employee of this business prior to the date of the <br>preliminary approval by the authority as prescribed in KRS 154.23-030 shall be <br>subject to assessment. (3) The authority shall identify, by name, all of the existing qualified statewide employees employed by the eligible company prior to preliminary approval, and <br>these employees shall be exempt from the assessment. If any of these employees <br>cease working in the activity, then another qualified statewide employee shall be <br>added to the base level of employment, based on the earliest date of entry into the <br>work force, and this employee shall be exempt from the assessment. The authority <br>may negotiate with the approved company a different method of determining the <br>base level of employment that would yield a more equitable result for the approved <br>company, the Commonwealth, local jurisdictions, and the qualified statewide <br>employees. (4) To become eligible for inducements, the approved company shall create and maintain above the base level of employment in the Commonwealth, an increase at <br>the site of the project of at least ten (10) new full-time qualified employees. (5) The approved company shall continue to pay to the Commonwealth, on an annualized basis during the term of the tax incentive agreement or service and <br>technology agreement, as applicable, the base level of income tax, and the limited <br>liability entity tax imposed under KRS 141.0401, adjusted on an annual basis to <br>reflect changes in the consumer price index. The excess income tax and limited <br>liability entity tax imposed under KRS 141.0401 owed may be offset by the income <br>tax credit provided in KRS 154.23-050. (6) If any approved company expands in a qualified zone because of an increase in business or because of the commencement of a new line of business, it may be <br>eligible, at the discretion of the authority, to negotiate a separate, additional tax incentive agreement or service and technology agreement to cover the expanded <br>business under the same conditions as authorized for an expansion in this section. Effective: June 28, 2006 <br>History: Amended 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 49, effective June 28, 2006. -- Amended 2002 Ky. Acts ch. 338, sec. 30, effective July 15, 2002. -- Created <br>2000 Ky. Acts ch. 528, sec. 9, effective July 14, 2000. Legislative Research Commission Note (6/28/2006). 2006 (1st Extra Sess.) Ky. Acts ch. 2, sec. 73, provides that "unless a provision of this Act specifically applies to an <br>earlier tax year, the provisions of this Act shall apply to taxable years beginning on or <br>after January 1, 2007."
154.23-045 Application of eligible company to become approved company and expand existing business -- Base levels for eligible credits -- Exemption of <br>employees from assessment -- Increase in number of employees at site -- Tax -- <br>Additional agreements. (1) If an eligible company operates an existing business in a qualified zone, and wishes to expand that business within the zone, the eligible company may submit an <br>application to the authority to become an approved company under KRS 154.23-<br>025. (2) If the eligible company under subsection (1) of this section becomes an approved company, the authority shall determine a base level of employment in the <br>Commonwealth, a base level of state income tax liability, a base level of limited <br>liability entity tax liability under KRS 141.0401, and a base level of manufacturing <br>or service or technology activity, as applicable, of the approved company for <br>determining eligible credits for the approved company's project during the term of a <br>tax incentive agreement or service and technology agreement. The base level shall <br>be determined by taking into consideration any seasonal fluctuations or aberrations <br>of employment levels during the preceding three (3) years. Notwithstanding the <br>determination of a base level of employment in the Commonwealth, no qualified <br>statewide employee who is an employee of this business prior to the date of the <br>preliminary approval by the authority as prescribed in KRS 154.23-030 shall be <br>subject to assessment. (3) The authority shall identify, by name, all of the existing qualified statewide employees employed by the eligible company prior to preliminary approval, and <br>these employees shall be exempt from the assessment. If any of these employees <br>cease working in the activity, then another qualified statewide employee shall be <br>added to the base level of employment, based on the earliest date of entry into the <br>work force, and this employee shall be exempt from the assessment. The authority <br>may negotiate with the approved company a different method of determining the <br>base level of employment that would yield a more equitable result for the approved <br>company, the Commonwealth, local jurisdictions, and the qualified statewide <br>employees. (4) To become eligible for inducements, the approved company shall create and maintain above the base level of employment in the Commonwealth, an increase at <br>the site of the project of at least ten (10) new full-time qualified employees. (5) The approved company shall continue to pay to the Commonwealth, on an annualized basis during the term of the tax incentive agreement or service and <br>technology agreement, as applicable, the base level of income tax, and the limited <br>liability entity tax imposed under KRS 141.0401, adjusted on an annual basis to <br>reflect changes in the consumer price index. The excess income tax and limited <br>liability entity tax imposed under KRS 141.0401 owed may be offset by the income <br>tax credit provided in KRS 154.23-050. (6) If any approved company expands in a qualified zone because of an increase in business or because of the commencement of a new line of business, it may be <br>eligible, at the discretion of the authority, to negotiate a separate, additional tax incentive agreement or service and technology agreement to cover the expanded <br>business under the same conditions as authorized for an expansion in this section. Effective: June 28, 2006 <br>History: Amended 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 49, effective June 28, 2006. -- Amended 2002 Ky. Acts ch. 338, sec. 30, effective July 15, 2002. -- Created <br>2000 Ky. Acts ch. 528, sec. 9, effective July 14, 2000. Legislative Research Commission Note (6/28/2006). 2006 (1st Extra Sess.) Ky. Acts ch. 2, sec. 73, provides that "unless a provision of this Act specifically applies to an <br>earlier tax year, the provisions of this Act shall apply to taxable years beginning on or <br>after January 1, 2007."
