Page 1 of 2 154.32-020 Incentives to induce location of economic development projects in the Commonwealth -- Purposes -- Requirements -- Summary of incentives <br>available -- Legislative findings. (1) The purposes of this subchapter are: (a) To provide incentives for eligible companies and to encourage the location or expansion of manufacturing facilities, agribusiness operations, nonretail <br>service or technology facilities, and regional or national corporate <br>headquarters in the Commonwealth to advance the public purposes of: <br>1. Creation of new jobs that, but for the incentives offered by the authority, <br>would not exist within the Commonwealth; 2. Creation of new sources of tax revenues for the support of public <br>services provided by the Commonwealth; and 3. Improvement in the quality of life for Kentucky citizens through the <br>creation of sustainable jobs with higher salaries; and (b) To provide enhanced incentives for companies that locate in enhanced incentive counties in recognition of the depressed economic conditions in <br>those counties and the increased need for the growth and development caused <br>by the depressed economic conditions. (2) (a) To qualify for the incentives provided by subsection (3) of this section, an approved company shall: <br>1. Incur eligible costs of at least one hundred thousand dollars ($100,000); 2. Create at least ten (10) new full-time jobs and maintain an annual <br>average number of at least ten (10) new full-time jobs; and 3. a. Pay at least ninety percent (90%) of all new full-time employees <br>whose jobs were created as a result of the economic development <br>project a minimum wage of at least one hundred twenty-five <br>percent (125%) of the federal minimum wage in enhanced <br>incentive counties, and one hundred fifty percent (150%) of the <br>federal minimum wage in other counties throughout the term of <br>the economic development project; and b. Provide employee benefits for all new full-time jobs equal to at <br>least fifteen percent (15%) of the minimum wage target established <br>by the tax incentive agreement. If the eligible company does not <br>provide employee benefits equal to at least fifteen percent (15%) <br>of the minimum wage target established by the tax incentive <br>agreement, the eligible company may still qualify for incentives if <br>it provides the full-time employees hired as a result of the <br>economic development project total hourly compensation equal to <br>or greater than one hundred fifteen percent (115%) of the <br>minimum wage target established in the tax incentive agreement <br>through increased hourly wages combined with employee benefits. (b) To qualify for the advance disbursement provided by KRS 154.32-080, an approved company shall commit to meeting the job and wage requirements Page 2 of 2 established by paragraph (a) of this subsection, and shall provide <br>documentation indicating that the proposed economic development project <br>will require investment of at least five hundred million dollars <br>($500,000,000). (3) The incentives available under this subchapter are as follows: (a) Tax credits of up to one hundred percent (100%) of the Kentucky income tax imposed under KRS 141.020 or 141.040 and the limited liability entity tax <br>imposed under KRS 141.0401 on the income, Kentucky gross profits, or <br>Kentucky gross receipts of the approved company generated by or arising <br>from the economic development project, as set forth in KRS 141.415 and <br>154.32-070; (b) Authorization for the approved company to impose a wage assessment against the gross wages of each new employee subject to the Kentucky income tax as <br>provided in KRS 154.32-090; and (c) For economic development projects with an investment of more than five hundred million dollars ($500,000,000), an advance disbursement as provided <br>in KRS 154.32-080. (4) The General Assembly hereby finds and declares that the authority granted in this subchapter and the purposes accomplished hereby are proper governmental and <br>public purposes for which public moneys may be expended, and that the <br>inducement of the location of economic development projects within the <br>Commonwealth is of paramount importance to the economic well-being of the <br>Commonwealth. Effective: June 26, 2009 <br>History: Created 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 10, effective June 26, 2009.
Page 1 of 2 154.32-020 Incentives to induce location of economic development projects in the Commonwealth -- Purposes -- Requirements -- Summary of incentives <br>available -- Legislative findings. (1) The purposes of this subchapter are: (a) To provide incentives for eligible companies and to encourage the location or expansion of manufacturing facilities, agribusiness operations, nonretail <br>service or technology facilities, and regional or national corporate <br>headquarters in the Commonwealth to advance the public purposes of: <br>1. Creation of new jobs that, but for the incentives offered by the authority, <br>would not exist within the Commonwealth; 2. Creation of new sources of tax revenues for the support of public <br>services provided by the Commonwealth; and 3. Improvement in the quality of life for Kentucky citizens through the <br>creation of sustainable jobs with higher salaries; and (b) To provide enhanced incentives for companies that locate in enhanced incentive counties in recognition of the depressed economic conditions in <br>those counties and the increased need for the growth and development caused <br>by the depressed economic conditions. (2) (a) To qualify for the incentives provided by subsection (3) of this section, an approved company shall: <br>1. Incur eligible costs of at least one hundred thousand dollars ($100,000); 2. Create at least ten (10) new full-time jobs and maintain an annual <br>average number of at least ten (10) new full-time jobs; and 3. a. Pay at least ninety percent (90%) of all new full-time employees <br>whose jobs were created as a result of the economic development <br>project a minimum wage of at least one hundred twenty-five <br>percent (125%) of the federal minimum wage in enhanced <br>incentive counties, and one hundred fifty percent (150%) of the <br>federal minimum wage in other counties throughout the term of <br>the economic development project; and b. Provide employee benefits for all new full-time jobs equal to at <br>least fifteen percent (15%) of the minimum wage target established <br>by the tax incentive agreement. If the eligible company does not <br>provide employee benefits equal to at least fifteen percent (15%) <br>of the minimum wage target established by the tax incentive <br>agreement, the eligible company may still qualify for incentives if <br>it provides the full-time employees hired as a result of the <br>economic development project total hourly compensation equal to <br>or greater than one hundred fifteen percent (115%) of the <br>minimum wage target established in the tax incentive agreement <br>through increased hourly wages combined with employee benefits. (b) To qualify for the advance disbursement provided by KRS 154.32-080, an approved company shall commit to meeting the job and wage requirements Page 2 of 2 established by paragraph (a) of this subsection, and shall provide <br>documentation indicating that the proposed economic development project <br>will require investment of at least five hundred million dollars <br>($500,000,000). (3) The incentives available under this subchapter are as follows: (a) Tax credits of up to one hundred percent (100%) of the Kentucky income tax imposed under KRS 141.020 or 141.040 and the limited liability entity tax <br>imposed under KRS 141.0401 on the income, Kentucky gross profits, or <br>Kentucky gross receipts of the approved company generated by or arising <br>from the economic development project, as set forth in KRS 141.415 and <br>154.32-070; (b) Authorization for the approved company to impose a wage assessment against the gross wages of each new employee subject to the Kentucky income tax as <br>provided in KRS 154.32-090; and (c) For economic development projects with an investment of more than five hundred million dollars ($500,000,000), an advance disbursement as provided <br>in KRS 154.32-080. (4) The General Assembly hereby finds and declares that the authority granted in this subchapter and the purposes accomplished hereby are proper governmental and <br>public purposes for which public moneys may be expended, and that the <br>inducement of the location of economic development projects within the <br>Commonwealth is of paramount importance to the economic well-being of the <br>Commonwealth. Effective: June 26, 2009 <br>History: Created 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 10, effective June 26, 2009.
Page 1 of 2 154.32-020 Incentives to induce location of economic development projects in the Commonwealth -- Purposes -- Requirements -- Summary of incentives <br>available -- Legislative findings. (1) The purposes of this subchapter are: (a) To provide incentives for eligible companies and to encourage the location or expansion of manufacturing facilities, agribusiness operations, nonretail <br>service or technology facilities, and regional or national corporate <br>headquarters in the Commonwealth to advance the public purposes of: <br>1. Creation of new jobs that, but for the incentives offered by the authority, <br>would not exist within the Commonwealth; 2. Creation of new sources of tax revenues for the support of public <br>services provided by the Commonwealth; and 3. Improvement in the quality of life for Kentucky citizens through the <br>creation of sustainable jobs with higher salaries; and (b) To provide enhanced incentives for companies that locate in enhanced incentive counties in recognition of the depressed economic conditions in <br>those counties and the increased need for the growth and development caused <br>by the depressed economic conditions. (2) (a) To qualify for the incentives provided by subsection (3) of this section, an approved company shall: <br>1. Incur eligible costs of at least one hundred thousand dollars ($100,000); 2. Create at least ten (10) new full-time jobs and maintain an annual <br>average number of at least ten (10) new full-time jobs; and 3. a. Pay at least ninety percent (90%) of all new full-time employees <br>whose jobs were created as a result of the economic development <br>project a minimum wage of at least one hundred twenty-five <br>percent (125%) of the federal minimum wage in enhanced <br>incentive counties, and one hundred fifty percent (150%) of the <br>federal minimum wage in other counties throughout the term of <br>the economic development project; and b. Provide employee benefits for all new full-time jobs equal to at <br>least fifteen percent (15%) of the minimum wage target established <br>by the tax incentive agreement. If the eligible company does not <br>provide employee benefits equal to at least fifteen percent (15%) <br>of the minimum wage target established by the tax incentive <br>agreement, the eligible company may still qualify for incentives if <br>it provides the full-time employees hired as a result of the <br>economic development project total hourly compensation equal to <br>or greater than one hundred fifteen percent (115%) of the <br>minimum wage target established in the tax incentive agreement <br>through increased hourly wages combined with employee benefits. (b) To qualify for the advance disbursement provided by KRS 154.32-080, an approved company shall commit to meeting the job and wage requirements Page 2 of 2 established by paragraph (a) of this subsection, and shall provide <br>documentation indicating that the proposed economic development project <br>will require investment of at least five hundred million dollars <br>($500,000,000). (3) The incentives available under this subchapter are as follows: (a) Tax credits of up to one hundred percent (100%) of the Kentucky income tax imposed under KRS 141.020 or 141.040 and the limited liability entity tax <br>imposed under KRS 141.0401 on the income, Kentucky gross profits, or <br>Kentucky gross receipts of the approved company generated by or arising <br>from the economic development project, as set forth in KRS 141.415 and <br>154.32-070; (b) Authorization for the approved company to impose a wage assessment against the gross wages of each new employee subject to the Kentucky income tax as <br>provided in KRS 154.32-090; and (c) For economic development projects with an investment of more than five hundred million dollars ($500,000,000), an advance disbursement as provided <br>in KRS 154.32-080. (4) The General Assembly hereby finds and declares that the authority granted in this subchapter and the purposes accomplished hereby are proper governmental and <br>public purposes for which public moneys may be expended, and that the <br>inducement of the location of economic development projects within the <br>Commonwealth is of paramount importance to the economic well-being of the <br>Commonwealth. Effective: June 26, 2009 <br>History: Created 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 10, effective June 26, 2009.
