154.28.010 Definitions for KRS 154.28-010 to 154.28-100.
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154.28-010 Definitions for KRS 154.28-010 to 154.28-100. As used in KRS 154.28-010 to 154.28-100, unless the context clearly indicates otherwise: <br>(1) "Activation date" means a date selected by an approved company in the agreement at any time within the two (2) year period after the date of final approval of the <br>agreement by the authority; (2) "Affiliate" has the same meaning as in KRS 154.22-010; <br>(3) "Agreement" means the tax incentive agreement entered into, pursuant to KRS 154.28-090, between the authority and an approved company with respect to an <br>economic development project; (4) "Agribusiness" means any activity involving the processing of raw agricultural products, including timber, or the providing of value-added functions with regard to <br>raw agricultural products; (5) "Approved company" means any eligible company, approved by the authority pursuant to KRS 154.28-080, requiring an economic development project; (6) "Approved costs" means: (a) Obligations incurred for labor and to vendors, contractors, subcontractors, builders, suppliers, deliverymen, and materialmen in connection with the <br>acquisition, construction, rehabilitation, and installation of an economic <br>development project; (b) The cost of contract bonds and of insurance of all kinds that may be required or necessary during the course of acquisition, construction, rehabilitation, and <br>installation of an economic project which is not paid by the vendor, supplier, <br>deliverymen, contractors, or otherwise else provided; (c) All costs of architectural and engineering services, including estimates, plans and specifications, preliminary investigations, and supervision of construction, <br>rehabilitation, and installation, as well as for the performance of all the duties <br>required by or consequent upon the acquisition, construction, rehabilitation, <br>and installation of an economic development project; (d) All costs which shall be required to be paid under the terms of any contract for the acquisition, construction, rehabilitation, and installation of an economic <br>development project; (e) All costs which shall be required for the installation of utilities such as water, sewer, sewer treatment, gas, electricity, communications, railroads, and <br>similar facilities, and including offsite construction of the facilities paid for by <br>the approved company; and (f) All other costs comparable to those described above; (7) "Assessment" means the job development assessment fee authorized by KRS 154.28-010 to 154.28-100; (8) "Authority" means the Kentucky Economic Development Finance Authority created by KRS 154.20-010; (9) "Average hourly wage" means the wage and employment data published by the Office of Employment and Training within the Department of Workforce Investment in the Education and Workforce Development Cabinet collectively <br>translated into wages per hour based on a two thousand eighty (2,080) hour work <br>year for the following sectors: <br>(a) Manufacturing; <br>(b) Transportation, communications, and public utilities; <br>(c) Wholesale and retail trade; <br>(d) Finance, insurance, and real estate; and <br>(e) Services; (10) "Commonwealth" means the Commonwealth of Kentucky; <br>(11) (a) "Economic development project" or "project" means and includes: 1. The acquisition of ownership in any real estate by the approved <br>manufacturing or agribusiness company or its affiliate; 2. The present ownership of real estate by the approved manufacturing or <br>agribusiness company or its affiliate; 3. The acquisition or present ownership of improvements or facilities, as <br>described in paragraph (b) of this subsection, on land which is possessed <br>or is to be possessed by the approved company pursuant to a ground <br>lease having a term of sixty (60) years or more; and 4. The legal possession of facilities by an approved company or its affiliate <br>pursuant to a lease having a term equal to or greater than ten (10) years <br>with a third-party entity, negotiated at arm's length, if the facility will be <br>used by the approved company to conduct the approved activity for <br>which the inducement has been granted. An economic development <br>project qualifying under this subparagraph shall only be eligible for <br>credits against equipment and costs related to installation of equipment <br>and for purposes of the tax credits provided under the provisions of KRS <br>154.28-010 to 154.28-090 only to the extent of twenty thousand dollars <br>($20,000) per job created by and maintained at the economic <br>development project. Notwithstanding KRS 154.28-090, an economic <br>development project qualifying under this subparagraph shall be eligible <br>only for the aggregate assessments pursuant to KRS 154.28-110 <br>withheld by the approved company each year and shall not be eligible <br>for credit against Kentucky income tax and limited liability entity tax. (b) For purposes of paragraph (a)1. and 2. of this subsection, ownership of real estate shall only include fee ownership of real estate and possession of real <br>estate pursuant to a capital lease as determined in accordance with Statement <br>of Financial Accounting Standards No. 13, Accounting for Leases, issued by <br>the Financial Accounting Standards Board, November 1976. With respect to <br>paragraph (a)1., 2., and 3. of this subsection, the construction, installation, <br>equipping, and rehabilitating of improvements, including fixtures and <br>equipment directly involved in the manufacturing process, and facilities <br>necessary or desirable for improvement of the real estate shall include: <br>surveys, site tests, and inspections; subsurface site work and excavation; removal of structures, roadways, cemeteries, and other site obstructions; <br>filling, grading, provision of drainage, and storm water retention; installation <br>of utilities such as water, sewer, sewage treatment, gas, electricity, <br>communications, and similar facilities; offsite construction of utility <br>extensions to the boundaries of the real estate; and the acquisition, <br>installation, equipping, and rehabilitation of manufacturing facilities or <br>agribusiness operations on the real estate for the use of the approved company <br>or its affiliates for manufacturing or agribusiness operational purposes. <br>Pursuant to paragraph (a)3. and 4. of this subsection and this paragraph, an <br>economic development project shall not include lease payments made <br>pursuant to a ground lease for purposes of the tax credits provided under the <br>provisions of KRS 154.28-010 to 154.28-100. An economic development <br>project shall include the equipping of a facility with equipment but, for <br>purposes of the tax credits provided under the provisions of KRS 154.28-010 <br>to 154.28-090, only to the extent of twenty thousand dollars ($20,000) per job <br>created by and maintained at the economic development project; (12) "Eligible company" means any corporation, limited liability company, partnership, limited partnership, sole proprietorship, trust, or any other entity engaged in <br>manufacturing or agribusiness operations; (13) "Employee benefits" means nonmandated costs paid by an eligible company for its full-time employees for health insurance, life insurance, dental insurance, vision <br>insurance, defined benefits, 401(k), or similar plans; (14) "Full-time employee" means a person employed by an approved company for a minimum of thirty-five (35) hours per week and subject to the state income tax <br>imposed by KRS 141.020; (15) "Inducement" means the assessment or the Kentucky income tax credit as set forth in KRS 154.28-090; (16) "Manufacturing" means any activity involving the manufacturing, processing, assembling, or production of any property, including the processing resulting in a <br>change in the conditions of the property, and any activity functionally related to it, <br>together with storage, warehousing, distribution, and related office facilities; <br>however, "manufacturing" shall not include mining, coal or mineral processing, or <br>extraction of minerals; (17) "State agency" shall have the meaning assigned to the term in KRS 56.440(8); <br>(18) "Kentucky gross profits" means "Kentucky gross profits" as defined in KRS 141.0401; and (19) "Kentucky gross receipts" means "Kentucky gross receipts" as defined in KRS 141.0401. Effective: June 25, 2009 <br>History: Amended 2009 Ky. Acts ch. 11, sec. 43, effective June 25, 2009. -- Amended 2007 Ky. Acts ch. 75, sec. 2, effective June 26, 2007. -- Amended 2006 (1st Extra. <br>Sess.) Ky. Acts ch. 2, sec. 59, effective June 28, 2006. -- Amended 2006 Ky. Acts <br>ch. 149, sec. 220, effective July 12, 2006; and ch. 211, sec. 75, effective July 12, <br>2006. -- Amended 2004 Ky. Acts ch. 105, sec. 16, effective July 13, 2004. -- Amended 2002 Ky. Acts ch. 338, sec. 37, effective July 15, 2002. -- Amended 2000 <br>Ky. Acts ch. 321, sec. 5, effective July 14, 2000. -- Amended 1996 Ky. Acts ch. 194, <br>sec. 51, effective July 15, 1996; and ch. 337, sec. 1, effective July 15, 1996. -- <br>Amended 1994 Ky. Acts ch. 390, sec. 8, effective July 15, 1994; ch. 450, sec. 27, <br>effective July 15, 1994; and ch. 499, sec. 26, effective July 15, 1994.</div></article><aside class="right-sidebar"><div class="related-sidebar"><h3><span class="emoji">⚖️</span> State Laws</h3><ul class="state-laws-list"><li><a href="https://state-laws.laws.com/state-of-alabama">The State Laws of <!-- -->Alabama</a></li><li><a href="https://state-laws.laws.com/state-of-alaska">The State Laws of <!-- -->Alaska</a></li><li><a href="https://state-laws.laws.com/state-of-arizona">The State Laws of <!-- -->Arizona</a></li><li><a href="https://state-laws.laws.com/state-of-arkansas">The State Laws of <!-- -->Arkansas</a></li><li><a href="https://state-laws.laws.com/state-of-california">The State Laws of <!-- -->California</a></li><li><a href="https://state-laws.laws.com/state-of-colorado">The State Laws of <!-- -->Colorado</a></li><li><a href="https://state-laws.laws.com/state-of-connecticut">The State Laws of <!-- 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PDF...\u003c/div\u003e\u003cscript type=\"text/javascript\"\u003e var pdf_url = 'https://law.justia.com/codes/kentucky/2009/154-28/pdf/010.pdf'; $(document).ready(function() { var embedwindow = $(\"#embed_document\"); if ($.browser.msie){ embedwindow.html('\u003cembed src=\"'+pdf_url+'\" width=\"100%\" height=\"100%\"\u003e\u003c/embed\u003e'); } else { embedwindow.html('\u003ciframe style=\"width:100%; height:100%;\" src=\"https://docs.google.com/gview?url='+window.escape(pdf_url)+'\u0026embedded=true\" frameborder=\"0\"\u003e\u003c/iframe\u003e'); } });\u003c/script\u003e\u003cbr\u003e\u003cbr\u003e\u003cnoframes\u003e154.28-010 Definitions for KRS 154.28-010 to 154.28-100. As used in KRS 154.28-010 to 154.28-100, unless the context clearly indicates otherwise: \u003cbr\u003e(1) \u0026quot;Activation date\u0026quot; means a date selected by an approved company in the agreement at any time within the two (2) year period after the date of final approval of the \u003cbr\u003eagreement by the authority; (2) \u0026quot;Affiliate\u0026quot; has the same meaning as in KRS 154.22-010; \u003cbr\u003e(3) \u0026quot;Agreement\u0026quot; means the tax incentive agreement entered into, pursuant to KRS 154.28-090, between the authority and an approved company with respect to an \u003cbr\u003eeconomic development project; (4) \u0026quot;Agribusiness\u0026quot; means any activity involving the processing of raw agricultural products, including timber, or the providing of value-added functions with regard to \u003cbr\u003eraw agricultural products; (5) \u0026quot;Approved company\u0026quot; means any eligible company, approved by the authority pursuant to KRS 154.28-080, requiring an economic development project; (6) \u0026quot;Approved costs\u0026quot; means: (a) Obligations incurred for labor and to vendors, contractors, subcontractors, builders, suppliers, deliverymen, and materialmen in connection with the \u003cbr\u003eacquisition, construction, rehabilitation, and installation of an economic \u003cbr\u003edevelopment project; (b) The cost of contract bonds and of insurance of all kinds that may be required or necessary during the course of acquisition, construction, rehabilitation, and \u003cbr\u003einstallation of an economic project which is not paid by the vendor, supplier, \u003cbr\u003edeliverymen, contractors, or otherwise else provided; (c) All costs of architectural and engineering services, including estimates, plans and specifications, preliminary investigations, and supervision of construction, \u003cbr\u003erehabilitation, and installation, as well as for the performance of all the duties \u003cbr\u003erequired by or consequent upon the acquisition, construction, rehabilitation, \u003cbr\u003eand installation of an economic development project; (d) All costs which shall be required to be paid under the terms of any contract for the acquisition, construction, rehabilitation, and installation of an economic \u003cbr\u003edevelopment project; (e) All costs which shall be required for the installation of utilities such as water, sewer, sewer treatment, gas, electricity, communications, railroads, and \u003cbr\u003esimilar facilities, and including offsite construction of the facilities paid for by \u003cbr\u003ethe approved company; and (f) All other costs comparable to those described above; (7) \u0026quot;Assessment\u0026quot; means the job development assessment fee authorized by KRS 154.28-010 to 154.28-100; (8) \u0026quot;Authority\u0026quot; means the Kentucky Economic Development Finance Authority created by KRS 154.20-010; (9) \u0026quot;Average hourly wage\u0026quot; means the wage and employment data published by the Office of Employment and Training within the Department of Workforce Investment in the Education and Workforce Development Cabinet collectively \u003cbr\u003etranslated into wages per hour based on a two thousand eighty (2,080) hour work \u003cbr\u003eyear for the following sectors: \u003cbr\u003e(a) Manufacturing; \u003cbr\u003e(b) Transportation, communications, and public utilities; \u003cbr\u003e(c) Wholesale and retail trade; \u003cbr\u003e(d) Finance, insurance, and real estate; and \u003cbr\u003e(e) Services; (10) \u0026quot;Commonwealth\u0026quot; means the Commonwealth of Kentucky; \u003cbr\u003e(11) (a) \u0026quot;Economic development project\u0026quot; or \u0026quot;project\u0026quot; means and includes: 1. The acquisition of ownership in any real estate by the approved \u003cbr\u003emanufacturing or agribusiness company or its affiliate; 2. The present ownership of real estate by the approved manufacturing or \u003cbr\u003eagribusiness company or its affiliate; 3. The acquisition or present ownership of improvements or facilities, as \u003cbr\u003edescribed in paragraph (b) of this subsection, on land which is possessed \u003cbr\u003eor is to be possessed by the approved company pursuant to a ground \u003cbr\u003elease having a term of sixty (60) years or more; and 4. The legal possession of facilities by an approved company or its affiliate \u003cbr\u003epursuant to a lease having a term equal to or greater than ten (10) years \u003cbr\u003ewith a third-party entity, negotiated at arm's length, if the facility will be \u003cbr\u003eused by the approved company to conduct the approved activity for \u003cbr\u003ewhich the inducement has been granted. An economic development \u003cbr\u003eproject qualifying under this subparagraph shall only be eligible for \u003cbr\u003ecredits against equipment and costs related to installation of equipment \u003cbr\u003eand for purposes of the tax credits provided under the provisions of KRS \u003cbr\u003e154.28-010 to 154.28-090 only to the extent of twenty thousand dollars \u003cbr\u003e(\u0026#36;20,000) per job created by and maintained at the economic \u003cbr\u003edevelopment project. Notwithstanding KRS 154.28-090, an economic \u003cbr\u003edevelopment project qualifying under this subparagraph shall be eligible \u003cbr\u003eonly for the aggregate assessments pursuant to KRS 154.28-110 \u003cbr\u003ewithheld by the approved company each year and shall not be eligible \u003cbr\u003efor credit against Kentucky income tax and limited liability entity tax. (b) For purposes of paragraph (a)1. and 2. of this subsection, ownership of real estate shall only include fee ownership of real estate and possession of real \u003cbr\u003eestate pursuant to a capital lease as determined in accordance with Statement \u003cbr\u003eof Financial Accounting Standards No. 13, Accounting for Leases, issued by \u003cbr\u003ethe Financial Accounting Standards Board, November 1976. With respect to \u003cbr\u003eparagraph (a)1., 2., and 3. of this subsection, the construction, installation, \u003cbr\u003eequipping, and rehabilitating of improvements, including fixtures and \u003cbr\u003eequipment directly involved in the manufacturing process, and facilities \u003cbr\u003enecessary or desirable for improvement of the real estate shall include: \u003cbr\u003esurveys, site tests, and inspections; subsurface site work and excavation; removal of structures, roadways, cemeteries, and other site obstructions; \u003cbr\u003efilling, grading, provision of drainage, and storm water retention; installation \u003cbr\u003eof utilities such as water, sewer, sewage treatment, gas, electricity, \u003cbr\u003ecommunications, and similar facilities; offsite construction of utility \u003cbr\u003eextensions to the boundaries of the real estate; and the acquisition, \u003cbr\u003einstallation, equipping, and rehabilitation of manufacturing facilities or \u003cbr\u003eagribusiness operations on the real estate for the use of the approved company \u003cbr\u003eor its affiliates for manufacturing or agribusiness operational purposes. \u003cbr\u003ePursuant to paragraph (a)3. and 4. of this subsection and this paragraph, an \u003cbr\u003eeconomic development project shall not include lease payments made \u003cbr\u003epursuant to a ground lease for purposes of the tax credits provided under the \u003cbr\u003eprovisions of KRS 154.28-010 to 154.28-100. An economic development \u003cbr\u003eproject shall include the equipping of a facility with equipment but, for \u003cbr\u003epurposes of the tax credits provided under the provisions of KRS 154.28-010 \u003cbr\u003eto 154.28-090, only to the extent of twenty thousand dollars (\u0026#36;20,000) per job \u003cbr\u003ecreated by and maintained at the economic development project; (12) \u0026quot;Eligible company\u0026quot; means any corporation, limited liability company, partnership, limited partnership, sole proprietorship, trust, or any other entity engaged in \u003cbr\u003emanufacturing or agribusiness operations; (13) \u0026quot;Employee benefits\u0026quot; means nonmandated costs paid by an eligible company for its full-time employees for health insurance, life insurance, dental insurance, vision \u003cbr\u003einsurance, defined benefits, 401(k), or similar plans; (14) \u0026quot;Full-time employee\u0026quot; means a person employed by an approved company for a minimum of thirty-five (35) hours per week and subject to the state income tax \u003cbr\u003eimposed by KRS 141.020; (15) \u0026quot;Inducement\u0026quot; means the assessment or the Kentucky income tax credit as set forth in KRS 154.28-090; (16) \u0026quot;Manufacturing\u0026quot; means any activity involving the manufacturing, processing, assembling, or production of any property, including the processing resulting in a \u003cbr\u003echange in the conditions of the property, and any activity functionally related to it, \u003cbr\u003etogether with storage, warehousing, distribution, and related office facilities; \u003cbr\u003ehowever, \u0026quot;manufacturing\u0026quot; shall not include mining, coal or mineral processing, or \u003cbr\u003eextraction of minerals; (17) \u0026quot;State agency\u0026quot; shall have the meaning assigned to the term in KRS 56.440(8); \u003cbr\u003e(18) \u0026quot;Kentucky gross profits\u0026quot; means \u0026quot;Kentucky gross profits\u0026quot; as defined in KRS 141.0401; and (19) \u0026quot;Kentucky gross receipts\u0026quot; means \u0026quot;Kentucky gross receipts\u0026quot; as defined in KRS 141.0401. Effective: June 25, 2009 \u003cbr\u003eHistory: Amended 2009 Ky. Acts ch. 11, sec. 43, effective June 25, 2009. -- Amended 2007 Ky. Acts ch. 75, sec. 2, effective June 26, 2007. -- Amended 2006 (1st Extra. \u003cbr\u003eSess.) Ky. Acts ch. 2, sec. 59, effective June 28, 2006. -- Amended 2006 Ky. Acts \u003cbr\u003ech. 149, sec. 220, effective July 12, 2006; and ch. 211, sec. 75, effective July 12, \u003cbr\u003e2006. -- Amended 2004 Ky. Acts ch. 105, sec. 16, effective July 13, 2004. -- Amended 2002 Ky. Acts ch. 338, sec. 37, effective July 15, 2002. -- Amended 2000 \u003cbr\u003eKy. Acts ch. 321, sec. 5, effective July 14, 2000. -- Amended 1996 Ky. Acts ch. 194, \u003cbr\u003esec. 51, effective July 15, 1996; and ch. 337, sec. 1, effective July 15, 1996. -- \u003cbr\u003eAmended 1994 Ky. 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