Page 1 of 2 154.32-040 Tax incentive agreement between authority and approved company -- Contents. The authority, upon final approval of a company, may enter into a tax incentive <br>agreement with the approved company. The terms and conditions of the tax incentive <br>agreement shall be negotiated between the authority and the approved company. The <br>terms of the tax incentive agreement shall include but not be limited to the following <br>provisions: <br>(1) The maximum approved costs that may be recovered over the term of the tax incentive agreement and the annual maximum for approved costs; (2) That the approved company shall provide the authority with all documentation requested in a manner acceptable to the authority; (3) Identification of the contribution of the local government to the economic development project, if any; (4) The activation date, which shall be within two (2) years of final approval; <br>(5) That the approved company shall implement the activation date by notifying the authority; (6) That the approved company shall provide documentation satisfactory to the authority within the timeframes required by the authority that it has met the <br>minimum employment, minimum investment, and minimum wage requirements, <br>including employee benefits, established by KRS 154.32-020; (7) That failure of the approved company to meet any of the minimum job, minimum investment, or minimum wage requirements, including employee benefits, <br>established by KRS 154.32-020, on the activation date shall result in cancellation of <br>the tax incentive agreement; (8) The term of the agreement, which shall not exceed fifteen (15) years for an economic development project located in an enhanced incentive county, or ten (10) <br>years for an economic development project located in another county; (9) That, if confirmed approved costs are less than the maximum approved costs included in the tax incentive agreement, the confirmed approved costs shall become <br>the maximum amount that may be recovered by the approved company; (10) If the economic development project is a leased project, that future rent payments that are included in eligible costs shall be included as confirmed approved costs <br>upon submission of a valid lease agreement executed after preliminary approval; (11) Establishment of a job target and minimum wage target, including employee benefits; (12) A requirement that the job target and minimum wage target, including employee benefits, be measured: <br>(a) On the activation date, against the actual new full-time jobs created and the average wages, including employee benefits, paid for those jobs; and (b) Annually during each year of the agreement, against the annual average of the new full-time jobs and the average wages paid for those jobs, including <br>employee benefits; Page 2 of 2 (13) A provision requiring the approved company to notify the authority immediately if the approved company sells or otherwise transfers or disposes of the land on which <br>an economic development project is located, if a lease relating to the economic <br>development project is terminated or lapses, or if the approved company ceases or <br>fundamentally alters operations at the economic development project; (14) A provision detailing the reductions in incentives that will occur pursuant to KRS 154.32-030(4) if an approved company fails to meet its job target or minimum wage <br>target, including employee benefits; (15) If the tax incentive agreement includes an advance disbursement, incorporation of the provisions of the loan agreement or inclusion of the loan agreement as an <br>attachment to the tax incentive agreement; (16) That the agreement may be assigned by the approved company upon the adoption of a resolution by the authority to that effect; (17) That the approved company shall make available to the authority all of its records pertaining to the economic development project, including but not limited to payroll <br>records, records relating to eligible costs, and any other records pertaining to the <br>economic development project that the authority may require; (18) That the authority may share information with the department for the purposes of monitoring and enforcing the terms of the tax incentive agreement; (19) That, if an approved company fails to comply with its obligations under the tax incentive agreement other than the jobs target or minimum wage target, the <br>authority may take any or all of the following actions: <br>(a) Suspend the incentives available to the approved company; <br>(b) Terminate the incentives available to the approved company; or <br>(c) Pursue any other remedy set forth in the tax incentive agreement or to which it may be entitled by law; and (20) Any other provisions not inconsistent with this subchapter and determined to be necessary or appropriate by the parties to the tax incentive agreement. Effective: June 26, 2009 <br>History: Created 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 12, effective June 26, 2009.
Page 1 of 2 154.32-040 Tax incentive agreement between authority and approved company -- Contents. The authority, upon final approval of a company, may enter into a tax incentive <br>agreement with the approved company. The terms and conditions of the tax incentive <br>agreement shall be negotiated between the authority and the approved company. The <br>terms of the tax incentive agreement shall include but not be limited to the following <br>provisions: <br>(1) The maximum approved costs that may be recovered over the term of the tax incentive agreement and the annual maximum for approved costs; (2) That the approved company shall provide the authority with all documentation requested in a manner acceptable to the authority; (3) Identification of the contribution of the local government to the economic development project, if any; (4) The activation date, which shall be within two (2) years of final approval; <br>(5) That the approved company shall implement the activation date by notifying the authority; (6) That the approved company shall provide documentation satisfactory to the authority within the timeframes required by the authority that it has met the <br>minimum employment, minimum investment, and minimum wage requirements, <br>including employee benefits, established by KRS 154.32-020; (7) That failure of the approved company to meet any of the minimum job, minimum investment, or minimum wage requirements, including employee benefits, <br>established by KRS 154.32-020, on the activation date shall result in cancellation of <br>the tax incentive agreement; (8) The term of the agreement, which shall not exceed fifteen (15) years for an economic development project located in an enhanced incentive county, or ten (10) <br>years for an economic development project located in another county; (9) That, if confirmed approved costs are less than the maximum approved costs included in the tax incentive agreement, the confirmed approved costs shall become <br>the maximum amount that may be recovered by the approved company; (10) If the economic development project is a leased project, that future rent payments that are included in eligible costs shall be included as confirmed approved costs <br>upon submission of a valid lease agreement executed after preliminary approval; (11) Establishment of a job target and minimum wage target, including employee benefits; (12) A requirement that the job target and minimum wage target, including employee benefits, be measured: <br>(a) On the activation date, against the actual new full-time jobs created and the average wages, including employee benefits, paid for those jobs; and (b) Annually during each year of the agreement, against the annual average of the new full-time jobs and the average wages paid for those jobs, including <br>employee benefits; Page 2 of 2 (13) A provision requiring the approved company to notify the authority immediately if the approved company sells or otherwise transfers or disposes of the land on which <br>an economic development project is located, if a lease relating to the economic <br>development project is terminated or lapses, or if the approved company ceases or <br>fundamentally alters operations at the economic development project; (14) A provision detailing the reductions in incentives that will occur pursuant to KRS 154.32-030(4) if an approved company fails to meet its job target or minimum wage <br>target, including employee benefits; (15) If the tax incentive agreement includes an advance disbursement, incorporation of the provisions of the loan agreement or inclusion of the loan agreement as an <br>attachment to the tax incentive agreement; (16) That the agreement may be assigned by the approved company upon the adoption of a resolution by the authority to that effect; (17) That the approved company shall make available to the authority all of its records pertaining to the economic development project, including but not limited to payroll <br>records, records relating to eligible costs, and any other records pertaining to the <br>economic development project that the authority may require; (18) That the authority may share information with the department for the purposes of monitoring and enforcing the terms of the tax incentive agreement; (19) That, if an approved company fails to comply with its obligations under the tax incentive agreement other than the jobs target or minimum wage target, the <br>authority may take any or all of the following actions: <br>(a) Suspend the incentives available to the approved company; <br>(b) Terminate the incentives available to the approved company; or <br>(c) Pursue any other remedy set forth in the tax incentive agreement or to which it may be entitled by law; and (20) Any other provisions not inconsistent with this subchapter and determined to be necessary or appropriate by the parties to the tax incentive agreement. Effective: June 26, 2009 <br>History: Created 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 12, effective June 26, 2009.
Page 1 of 2 154.32-040 Tax incentive agreement between authority and approved company -- Contents. The authority, upon final approval of a company, may enter into a tax incentive <br>agreement with the approved company. The terms and conditions of the tax incentive <br>agreement shall be negotiated between the authority and the approved company. The <br>terms of the tax incentive agreement shall include but not be limited to the following <br>provisions: <br>(1) The maximum approved costs that may be recovered over the term of the tax incentive agreement and the annual maximum for approved costs; (2) That the approved company shall provide the authority with all documentation requested in a manner acceptable to the authority; (3) Identification of the contribution of the local government to the economic development project, if any; (4) The activation date, which shall be within two (2) years of final approval; <br>(5) That the approved company shall implement the activation date by notifying the authority; (6) That the approved company shall provide documentation satisfactory to the authority within the timeframes required by the authority that it has met the <br>minimum employment, minimum investment, and minimum wage requirements, <br>including employee benefits, established by KRS 154.32-020; (7) That failure of the approved company to meet any of the minimum job, minimum investment, or minimum wage requirements, including employee benefits, <br>established by KRS 154.32-020, on the activation date shall result in cancellation of <br>the tax incentive agreement; (8) The term of the agreement, which shall not exceed fifteen (15) years for an economic development project located in an enhanced incentive county, or ten (10) <br>years for an economic development project located in another county; (9) That, if confirmed approved costs are less than the maximum approved costs included in the tax incentive agreement, the confirmed approved costs shall become <br>the maximum amount that may be recovered by the approved company; (10) If the economic development project is a leased project, that future rent payments that are included in eligible costs shall be included as confirmed approved costs <br>upon submission of a valid lease agreement executed after preliminary approval; (11) Establishment of a job target and minimum wage target, including employee benefits; (12) A requirement that the job target and minimum wage target, including employee benefits, be measured: <br>(a) On the activation date, against the actual new full-time jobs created and the average wages, including employee benefits, paid for those jobs; and (b) Annually during each year of the agreement, against the annual average of the new full-time jobs and the average wages paid for those jobs, including <br>employee benefits; Page 2 of 2 (13) A provision requiring the approved company to notify the authority immediately if the approved company sells or otherwise transfers or disposes of the land on which <br>an economic development project is located, if a lease relating to the economic <br>development project is terminated or lapses, or if the approved company ceases or <br>fundamentally alters operations at the economic development project; (14) A provision detailing the reductions in incentives that will occur pursuant to KRS 154.32-030(4) if an approved company fails to meet its job target or minimum wage <br>target, including employee benefits; (15) If the tax incentive agreement includes an advance disbursement, incorporation of the provisions of the loan agreement or inclusion of the loan agreement as an <br>attachment to the tax incentive agreement; (16) That the agreement may be assigned by the approved company upon the adoption of a resolution by the authority to that effect; (17) That the approved company shall make available to the authority all of its records pertaining to the economic development project, including but not limited to payroll <br>records, records relating to eligible costs, and any other records pertaining to the <br>economic development project that the authority may require; (18) That the authority may share information with the department for the purposes of monitoring and enforcing the terms of the tax incentive agreement; (19) That, if an approved company fails to comply with its obligations under the tax incentive agreement other than the jobs target or minimum wage target, the <br>authority may take any or all of the following actions: <br>(a) Suspend the incentives available to the approved company; <br>(b) Terminate the incentives available to the approved company; or <br>(c) Pursue any other remedy set forth in the tax incentive agreement or to which it may be entitled by law; and (20) Any other provisions not inconsistent with this subchapter and determined to be necessary or appropriate by the parties to the tax incentive agreement. Effective: June 26, 2009 <br>History: Created 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 12, effective June 26, 2009.
