154.48-010 Definitions for KRS 154.48-010 to 154.48-035. As used in KRS 154.48-010 to 154.48-035, unless the context clearly indicates otherwise: <br>(1) "Activation date" means a date selected by an approved company in the tax incentive agreement at any time within a two (2) year period after the date of final <br>approval of the tax incentive agreement by the authority; (2) "Affiliate" means the following: (a) Members of a family, including only brothers and sisters of the whole or half blood, spouse, ancestors, and lineal descendants of an individual; (b) An individual, and a corporation more than fifty percent (50%) in value of the outstanding stock of which is owned, directly or indirectly, by or for that <br>individual; (c) An individual, and a limited liability company of which more than fifty percent (50%) of the capital interest or profits are owned or controlled, <br>directly or indirectly, by or for that individual; (d) Two (2) corporations which are members of the same controlled group, which includes and is limited to: <br>1. One (1) or more chains of corporations connected through stock <br>ownership with a common parent corporation if: <br>a. Stock possessing more than fifty percent (50%) of the total <br>combined voting power of all classes of stock entitled to vote or <br>more than fifty percent (50%) of the total value of shares of all <br>classes of stock of each of the corporations, except the common <br>parent corporation, is owned by one (1) or more of the other <br>corporations; and b. The common parent corporation owns stock possessing more than <br>fifty percent (50%) of the total combined voting power of all <br>classes of stock entitled to vote or more than fifty percent (50%) of <br>the total value of shares of all classes of stock of at least one (1) of <br>the other corporations, excluding, in computing the voting power <br>or value, stock owned directly by the other corporations; or 2. Two (2) or more corporations if five (5) or fewer persons who are <br>individuals, estates, or trusts own stock possessing more than fifty <br>percent (50%) of the total combined voting power of all classes of stock <br>entitled to vote or more than fifty percent (50%) of the total value of <br>shares of all classes of stock of each corporation, taking into account the <br>stock ownership of each person only to the extent the stock ownership is <br>identical with respect to each corporation; (e) A grantor and a fiduciary of any trust; <br>(f) A fiduciary of a trust and a fiduciary of another trust, if the same person is a grantor of both trusts; (g) A fiduciary of a trust and a beneficiary of that trust; (h) A fiduciary of a trust and a beneficiary of another trust, if the same person is a grantor of both trusts; (i) A fiduciary of a trust and a corporation more than fifty percent (50%) in value of the outstanding stock of which is owned, directly or indirectly, by or for the <br>trust or by or for a person who is a grantor of the trust; (j) A fiduciary of a trust and a limited liability company more than fifty percent (50%) of the capital interest, or the interest in profits, of which is owned <br>directly or indirectly, by or for the trust or by or for a person who is a grantor <br>of the trust; (k) A corporation, a partnership, or a limited partnership if the same persons own: 1. More than fifty percent (50%) in value of the outstanding stock of the <br>corporation; and 2. More than fifty percent (50%) of the capital interest, or the profits <br>interest, in the partnership or limited partnership; (l) A corporation and a limited liability company if the same persons own: 1. More than fifty percent (50%) in value of the outstanding stock of the <br>corporation; and 2. More than fifty percent (50%) of the capital interest or the profits in the <br>limited liability company; (m) A partnership or limited partnership and a limited liability company if the same persons own: <br>1. More than fifty percent (50%) of the capital interest or profits in the <br>partnership or limited partnership; and 2. More than fifty percent (50%) of the capital interest or the profits in the <br>limited liability company; (n) An S corporation and another S corporation if the same persons own more than fifty percent (50%) in value of the outstanding stock of each corporation, <br>S corporation designation being the same as that designation under the <br>Internal Revenue Code of 1986, as amended; or (o) An S corporation and a C corporation, if the same persons own more than fifty percent (50%) in value of the outstanding stock of each corporation; S and C <br>corporation designations being the same as those designations under the <br>Internal Revenue Code of 1986, as amended; (3) "Approved company" means any eligible company for which the authority has granted final approval of its application pursuant to KRS 154.48-025; (4) "Approved costs" means one hundred percent (100%) of the eligible skills upgrade training costs and up to twenty-five percent (25%) of the eligible equipment costs <br>approved by the authority that an approved company may recover through the <br>inducements authorized by KRS 154.48-010 to 154.48-035; (5) "Authority" means the Kentucky Economic Development Finance Authority created by KRS 154.20-010; (6) "Average hourly wage" means the wage and employment data published by the Office of Employment and Training in the Department of Workforce Investment <br>within the Education and Workforce Development Cabinet collectively translated <br>into wages per hour based on a two thousand eighty (2,080) hour work year for the <br>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; (7) "Commonwealth" means the Commonwealth of Kentucky; <br>(8) "Eligible company" means any entity that undertakes an environmental stewardship project; (9) "Eligible costs" means eligible equipment costs plus eligible skills upgrade training costs expended after preliminary approval of the environmental stewardship project; (10) "Eligible equipment costs" means: (a) Obligations incurred for labor and to vendors, contractors, subcontractors, builders, suppliers, deliverymen, and materialmen in connection with the <br>acquisition, construction, equipping, and installation of an environmental <br>stewardship 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, equipping, and <br>installation of an environmental stewardship project which is not paid by the <br>vendor, supplier, deliveryman, contractor, or otherwise 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, equipping, and <br>installation of an environmental stewardship project; (d) All costs required to be paid under the terms of any contract for the acquisition, construction, equipping, and installation of an environmental stewardship project; (e) All costs paid for by the approved company that are required for the installation of utilities, including but not limited to water, sewer, sewer <br>treatment, gas, electricity, communications, and access to transportation, and <br>including off-site construction of the facilities necessary for implementation of <br>an environmental stewardship project; and (f) All other costs of a nature comparable to those described in this subsection. (11) "Eligible skills upgrade training costs" means: (a) Fees or salaries required to be paid to instructors who are employees of the approved company, instructors who are full-time, part-time, or adjunct <br>instructors with an educational institution, and instructors who are consultants on contract with an approved company in connection with an occupational <br>training program sponsored by an approved company for its full-time <br>employees and specifically relating to an environmental stewardship project; (b) Administrative fees charged by educational institutions in connection with an occupational training program sponsored by an approved company for its full-<br>time employees and specifically relating to an environmental stewardship project; (c) The cost of supplies, materials, and equipment used exclusively in an occupational training program sponsored by an approved company for its full-<br>time employees and specifically relating to an environmental stewardship project; (d) The cost of leasing a training facility where space is unavailable at an educational institution or at the premises of an approved company in <br>connection with an occupational training program sponsored by an approved <br>company for its full-time employees and specifically relating to an <br>environmental stewardship project; (e) Employee wages to be paid in connection with an occupational training program sponsored by an approved company for its full-time employees and <br>specifically relating to an environmental stewardship project; (f) Travel expenses paid by the approved company as incurred by its full-time employees resulting directly from the costs of transportation, lodging and <br>meals that are directly related to an occupational training program necessary <br>for the implementation of an environmental stewardship project; and (g) All other costs of a nature comparable to those described in this subsection; (12) "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; (13) "Environmental stewardship product" means any new manufactured product or substantially improved existing manufactured product that has a lesser or reduced <br>adverse effect on human health and the environment or provides for improvement to <br>human health and the environment when compared with existing products or <br>competing products that serve the same purpose. Such products may include but are <br>not limited to those which contain recycled content, minimize waste, conserve <br>energy or water, and reduce the amount of toxics disposed or consumed, but shall <br>not include products that are the result of the production of energy or energy <br>producing fuels; (14) "Environmental stewardship project" or "project" means: (a) The acquisition, construction, and installation of new equipment and, with respect thereto: <br>1. The construction, rehabilitation, and installation of improvements to <br>facilities necessary to house the new equipment, including surveys; 2. Installation of utilities including water, sewer, sewage treatment, gas, <br>electricity, communications, and similar facilities; 3. Off-site construction of utility extensions to the boundaries of the real <br>estate on which the facilities are located; All of which are utilized by an approved company or its affiliate to <br>manufacture an environmental stewardship product as reviewed and <br>recommended to the authority by the Energy and Environment Cabinet; and (b) The provision of an occupational training program to provide the employees of an approved company or its affiliate with the knowledge and skills <br>necessary to manufacture the new product; (15) "Final approval" means the action taken by the authority designating an eligible company that has previously received a preliminary approval as an approved <br>company and authorizing the execution of an environmental stewardship agreement <br>between the authority and the approved company; (16) "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; (17) "Inducement" means the Kentucky tax credit as authorized by KRS 154.48-010 to 154.48-035; (18) "Manufacturing" means any activity involving the manufacturing, processing, assembling, or production of any property, including the processing that results in a <br>change in the condition of the property and any related activity or function, together <br>with the storage, warehousing, distribution, and related office facilities; (19) "Preliminary approval" means the action taken by the authority designating an eligible company as a preliminarily approved company, and conditioning final <br>approval by the authority upon satisfaction by the eligible company of the <br>requirements set forth in the preliminary approval; (20) "Kentucky gross receipts" means Kentucky gross receipts as defined in KRS 141.0401; and (21) "Kentucky gross profits" means Kentucky gross profits as defined in KRS 141.0401. Effective: July 15, 2010 <br>History: Amended 2010 Ky. Acts ch. 24, sec. 207, effective July 15, 2010. -- Amended 2009 Ky. Acts ch. 11, sec. 45, effective June 25, 2009. -- Amended 2006 (1st Extra. <br>Sess.) Ky. Acts ch. 2, sec. 64, effective June 28, 2006. -- Amended 2006 Ky. Acts <br>ch. 149, sec. 222, effective July 12, 2006; and ch. 211, sec. 78, effective July 12, <br>2006. -- Created 2005 Ky. Acts ch. 168, sec. 143, effective March 18, 2005. 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." Legislative Research Commission Note (3/18/2005). 2005 Ky. Acts ch. 168, sec. 165, provides that this section shall apply to tax years beginning on or after January 1, <br>2005.
154.48-010 Definitions for KRS 154.48-010 to 154.48-035. As used in KRS 154.48-010 to 154.48-035, unless the context clearly indicates otherwise: <br>(1) "Activation date" means a date selected by an approved company in the tax incentive agreement at any time within a two (2) year period after the date of final <br>approval of the tax incentive agreement by the authority; (2) "Affiliate" means the following: (a) Members of a family, including only brothers and sisters of the whole or half blood, spouse, ancestors, and lineal descendants of an individual; (b) An individual, and a corporation more than fifty percent (50%) in value of the outstanding stock of which is owned, directly or indirectly, by or for that <br>individual; (c) An individual, and a limited liability company of which more than fifty percent (50%) of the capital interest or profits are owned or controlled, <br>directly or indirectly, by or for that individual; (d) Two (2) corporations which are members of the same controlled group, which includes and is limited to: <br>1. One (1) or more chains of corporations connected through stock <br>ownership with a common parent corporation if: <br>a. Stock possessing more than fifty percent (50%) of the total <br>combined voting power of all classes of stock entitled to vote or <br>more than fifty percent (50%) of the total value of shares of all <br>classes of stock of each of the corporations, except the common <br>parent corporation, is owned by one (1) or more of the other <br>corporations; and b. The common parent corporation owns stock possessing more than <br>fifty percent (50%) of the total combined voting power of all <br>classes of stock entitled to vote or more than fifty percent (50%) of <br>the total value of shares of all classes of stock of at least one (1) of <br>the other corporations, excluding, in computing the voting power <br>or value, stock owned directly by the other corporations; or 2. Two (2) or more corporations if five (5) or fewer persons who are <br>individuals, estates, or trusts own stock possessing more than fifty <br>percent (50%) of the total combined voting power of all classes of stock <br>entitled to vote or more than fifty percent (50%) of the total value of <br>shares of all classes of stock of each corporation, taking into account the <br>stock ownership of each person only to the extent the stock ownership is <br>identical with respect to each corporation; (e) A grantor and a fiduciary of any trust; <br>(f) A fiduciary of a trust and a fiduciary of another trust, if the same person is a grantor of both trusts; (g) A fiduciary of a trust and a beneficiary of that trust; (h) A fiduciary of a trust and a beneficiary of another trust, if the same person is a grantor of both trusts; (i) A fiduciary of a trust and a corporation more than fifty percent (50%) in value of the outstanding stock of which is owned, directly or indirectly, by or for the <br>trust or by or for a person who is a grantor of the trust; (j) A fiduciary of a trust and a limited liability company more than fifty percent (50%) of the capital interest, or the interest in profits, of which is owned <br>directly or indirectly, by or for the trust or by or for a person who is a grantor <br>of the trust; (k) A corporation, a partnership, or a limited partnership if the same persons own: 1. More than fifty percent (50%) in value of the outstanding stock of the <br>corporation; and 2. More than fifty percent (50%) of the capital interest, or the profits <br>interest, in the partnership or limited partnership; (l) A corporation and a limited liability company if the same persons own: 1. More than fifty percent (50%) in value of the outstanding stock of the <br>corporation; and 2. More than fifty percent (50%) of the capital interest or the profits in the <br>limited liability company; (m) A partnership or limited partnership and a limited liability company if the same persons own: <br>1. More than fifty percent (50%) of the capital interest or profits in the <br>partnership or limited partnership; and 2. More than fifty percent (50%) of the capital interest or the profits in the <br>limited liability company; (n) An S corporation and another S corporation if the same persons own more than fifty percent (50%) in value of the outstanding stock of each corporation, <br>S corporation designation being the same as that designation under the <br>Internal Revenue Code of 1986, as amended; or (o) An S corporation and a C corporation, if the same persons own more than fifty percent (50%) in value of the outstanding stock of each corporation; S and C <br>corporation designations being the same as those designations under the <br>Internal Revenue Code of 1986, as amended; (3) "Approved company" means any eligible company for which the authority has granted final approval of its application pursuant to KRS 154.48-025; (4) "Approved costs" means one hundred percent (100%) of the eligible skills upgrade training costs and up to twenty-five percent (25%) of the eligible equipment costs <br>approved by the authority that an approved company may recover through the <br>inducements authorized by KRS 154.48-010 to 154.48-035; (5) "Authority" means the Kentucky Economic Development Finance Authority created by KRS 154.20-010; (6) "Average hourly wage" means the wage and employment data published by the Office of Employment and Training in the Department of Workforce Investment <br>within the Education and Workforce Development Cabinet collectively translated <br>into wages per hour based on a two thousand eighty (2,080) hour work year for the <br>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; (7) "Commonwealth" means the Commonwealth of Kentucky; <br>(8) "Eligible company" means any entity that undertakes an environmental stewardship project; (9) "Eligible costs" means eligible equipment costs plus eligible skills upgrade training costs expended after preliminary approval of the environmental stewardship project; (10) "Eligible equipment costs" means: (a) Obligations incurred for labor and to vendors, contractors, subcontractors, builders, suppliers, deliverymen, and materialmen in connection with the <br>acquisition, construction, equipping, and installation of an environmental <br>stewardship 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, equipping, and <br>installation of an environmental stewardship project which is not paid by the <br>vendor, supplier, deliveryman, contractor, or otherwise 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, equipping, and <br>installation of an environmental stewardship project; (d) All costs required to be paid under the terms of any contract for the acquisition, construction, equipping, and installation of an environmental stewardship project; (e) All costs paid for by the approved company that are required for the installation of utilities, including but not limited to water, sewer, sewer <br>treatment, gas, electricity, communications, and access to transportation, and <br>including off-site construction of the facilities necessary for implementation of <br>an environmental stewardship project; and (f) All other costs of a nature comparable to those described in this subsection. (11) "Eligible skills upgrade training costs" means: (a) Fees or salaries required to be paid to instructors who are employees of the approved company, instructors who are full-time, part-time, or adjunct <br>instructors with an educational institution, and instructors who are consultants on contract with an approved company in connection with an occupational <br>training program sponsored by an approved company for its full-time <br>employees and specifically relating to an environmental stewardship project; (b) Administrative fees charged by educational institutions in connection with an occupational training program sponsored by an approved company for its full-<br>time employees and specifically relating to an environmental stewardship project; (c) The cost of supplies, materials, and equipment used exclusively in an occupational training program sponsored by an approved company for its full-<br>time employees and specifically relating to an environmental stewardship project; (d) The cost of leasing a training facility where space is unavailable at an educational institution or at the premises of an approved company in <br>connection with an occupational training program sponsored by an approved <br>company for its full-time employees and specifically relating to an <br>environmental stewardship project; (e) Employee wages to be paid in connection with an occupational training program sponsored by an approved company for its full-time employees and <br>specifically relating to an environmental stewardship project; (f) Travel expenses paid by the approved company as incurred by its full-time employees resulting directly from the costs of transportation, lodging and <br>meals that are directly related to an occupational training program necessary <br>for the implementation of an environmental stewardship project; and (g) All other costs of a nature comparable to those described in this subsection; (12) "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; (13) "Environmental stewardship product" means any new manufactured product or substantially improved existing manufactured product that has a lesser or reduced <br>adverse effect on human health and the environment or provides for improvement to <br>human health and the environment when compared with existing products or <br>competing products that serve the same purpose. Such products may include but are <br>not limited to those which contain recycled content, minimize waste, conserve <br>energy or water, and reduce the amount of toxics disposed or consumed, but shall <br>not include products that are the result of the production of energy or energy <br>producing fuels; (14) "Environmental stewardship project" or "project" means: (a) The acquisition, construction, and installation of new equipment and, with respect thereto: <br>1. The construction, rehabilitation, and installation of improvements to <br>facilities necessary to house the new equipment, including surveys; 2. Installation of utilities including water, sewer, sewage treatment, gas, <br>electricity, communications, and similar facilities; 3. Off-site construction of utility extensions to the boundaries of the real <br>estate on which the facilities are located; All of which are utilized by an approved company or its affiliate to <br>manufacture an environmental stewardship product as reviewed and <br>recommended to the authority by the Energy and Environment Cabinet; and (b) The provision of an occupational training program to provide the employees of an approved company or its affiliate with the knowledge and skills <br>necessary to manufacture the new product; (15) "Final approval" means the action taken by the authority designating an eligible company that has previously received a preliminary approval as an approved <br>company and authorizing the execution of an environmental stewardship agreement <br>between the authority and the approved company; (16) "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; (17) "Inducement" means the Kentucky tax credit as authorized by KRS 154.48-010 to 154.48-035; (18) "Manufacturing" means any activity involving the manufacturing, processing, assembling, or production of any property, including the processing that results in a <br>change in the condition of the property and any related activity or function, together <br>with the storage, warehousing, distribution, and related office facilities; (19) "Preliminary approval" means the action taken by the authority designating an eligible company as a preliminarily approved company, and conditioning final <br>approval by the authority upon satisfaction by the eligible company of the <br>requirements set forth in the preliminary approval; (20) "Kentucky gross receipts" means Kentucky gross receipts as defined in KRS 141.0401; and (21) "Kentucky gross profits" means Kentucky gross profits as defined in KRS 141.0401. Effective: July 15, 2010 <br>History: Amended 2010 Ky. Acts ch. 24, sec. 207, effective July 15, 2010. -- Amended 2009 Ky. Acts ch. 11, sec. 45, effective June 25, 2009. -- Amended 2006 (1st Extra. <br>Sess.) Ky. Acts ch. 2, sec. 64, effective June 28, 2006. -- Amended 2006 Ky. Acts <br>ch. 149, sec. 222, effective July 12, 2006; and ch. 211, sec. 78, effective July 12, <br>2006. -- Created 2005 Ky. Acts ch. 168, sec. 143, effective March 18, 2005. 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." Legislative Research Commission Note (3/18/2005). 2005 Ky. Acts ch. 168, sec. 165, provides that this section shall apply to tax years beginning on or after January 1, <br>2005.
154.48-010 Definitions for KRS 154.48-010 to 154.48-035. As used in KRS 154.48-010 to 154.48-035, unless the context clearly indicates otherwise: <br>(1) "Activation date" means a date selected by an approved company in the tax incentive agreement at any time within a two (2) year period after the date of final <br>approval of the tax incentive agreement by the authority; (2) "Affiliate" means the following: (a) Members of a family, including only brothers and sisters of the whole or half blood, spouse, ancestors, and lineal descendants of an individual; (b) An individual, and a corporation more than fifty percent (50%) in value of the outstanding stock of which is owned, directly or indirectly, by or for that <br>individual; (c) An individual, and a limited liability company of which more than fifty percent (50%) of the capital interest or profits are owned or controlled, <br>directly or indirectly, by or for that individual; (d) Two (2) corporations which are members of the same controlled group, which includes and is limited to: <br>1. One (1) or more chains of corporations connected through stock <br>ownership with a common parent corporation if: <br>a. Stock possessing more than fifty percent (50%) of the total <br>combined voting power of all classes of stock entitled to vote or <br>more than fifty percent (50%) of the total value of shares of all <br>classes of stock of each of the corporations, except the common <br>parent corporation, is owned by one (1) or more of the other <br>corporations; and b. The common parent corporation owns stock possessing more than <br>fifty percent (50%) of the total combined voting power of all <br>classes of stock entitled to vote or more than fifty percent (50%) of <br>the total value of shares of all classes of stock of at least one (1) of <br>the other corporations, excluding, in computing the voting power <br>or value, stock owned directly by the other corporations; or 2. Two (2) or more corporations if five (5) or fewer persons who are <br>individuals, estates, or trusts own stock possessing more than fifty <br>percent (50%) of the total combined voting power of all classes of stock <br>entitled to vote or more than fifty percent (50%) of the total value of <br>shares of all classes of stock of each corporation, taking into account the <br>stock ownership of each person only to the extent the stock ownership is <br>identical with respect to each corporation; (e) A grantor and a fiduciary of any trust; <br>(f) A fiduciary of a trust and a fiduciary of another trust, if the same person is a grantor of both trusts; (g) A fiduciary of a trust and a beneficiary of that trust; (h) A fiduciary of a trust and a beneficiary of another trust, if the same person is a grantor of both trusts; (i) A fiduciary of a trust and a corporation more than fifty percent (50%) in value of the outstanding stock of which is owned, directly or indirectly, by or for the <br>trust or by or for a person who is a grantor of the trust; (j) A fiduciary of a trust and a limited liability company more than fifty percent (50%) of the capital interest, or the interest in profits, of which is owned <br>directly or indirectly, by or for the trust or by or for a person who is a grantor <br>of the trust; (k) A corporation, a partnership, or a limited partnership if the same persons own: 1. More than fifty percent (50%) in value of the outstanding stock of the <br>corporation; and 2. More than fifty percent (50%) of the capital interest, or the profits <br>interest, in the partnership or limited partnership; (l) A corporation and a limited liability company if the same persons own: 1. More than fifty percent (50%) in value of the outstanding stock of the <br>corporation; and 2. More than fifty percent (50%) of the capital interest or the profits in the <br>limited liability company; (m) A partnership or limited partnership and a limited liability company if the same persons own: <br>1. More than fifty percent (50%) of the capital interest or profits in the <br>partnership or limited partnership; and 2. More than fifty percent (50%) of the capital interest or the profits in the <br>limited liability company; (n) An S corporation and another S corporation if the same persons own more than fifty percent (50%) in value of the outstanding stock of each corporation, <br>S corporation designation being the same as that designation under the <br>Internal Revenue Code of 1986, as amended; or (o) An S corporation and a C corporation, if the same persons own more than fifty percent (50%) in value of the outstanding stock of each corporation; S and C <br>corporation designations being the same as those designations under the <br>Internal Revenue Code of 1986, as amended; (3) "Approved company" means any eligible company for which the authority has granted final approval of its application pursuant to KRS 154.48-025; (4) "Approved costs" means one hundred percent (100%) of the eligible skills upgrade training costs and up to twenty-five percent (25%) of the eligible equipment costs <br>approved by the authority that an approved company may recover through the <br>inducements authorized by KRS 154.48-010 to 154.48-035; (5) "Authority" means the Kentucky Economic Development Finance Authority created by KRS 154.20-010; (6) "Average hourly wage" means the wage and employment data published by the Office of Employment and Training in the Department of Workforce Investment <br>within the Education and Workforce Development Cabinet collectively translated <br>into wages per hour based on a two thousand eighty (2,080) hour work year for the <br>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; (7) "Commonwealth" means the Commonwealth of Kentucky; <br>(8) "Eligible company" means any entity that undertakes an environmental stewardship project; (9) "Eligible costs" means eligible equipment costs plus eligible skills upgrade training costs expended after preliminary approval of the environmental stewardship project; (10) "Eligible equipment costs" means: (a) Obligations incurred for labor and to vendors, contractors, subcontractors, builders, suppliers, deliverymen, and materialmen in connection with the <br>acquisition, construction, equipping, and installation of an environmental <br>stewardship 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, equipping, and <br>installation of an environmental stewardship project which is not paid by the <br>vendor, supplier, deliveryman, contractor, or otherwise 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, equipping, and <br>installation of an environmental stewardship project; (d) All costs required to be paid under the terms of any contract for the acquisition, construction, equipping, and installation of an environmental stewardship project; (e) All costs paid for by the approved company that are required for the installation of utilities, including but not limited to water, sewer, sewer <br>treatment, gas, electricity, communications, and access to transportation, and <br>including off-site construction of the facilities necessary for implementation of <br>an environmental stewardship project; and (f) All other costs of a nature comparable to those described in this subsection. (11) "Eligible skills upgrade training costs" means: (a) Fees or salaries required to be paid to instructors who are employees of the approved company, instructors who are full-time, part-time, or adjunct <br>instructors with an educational institution, and instructors who are consultants on contract with an approved company in connection with an occupational <br>training program sponsored by an approved company for its full-time <br>employees and specifically relating to an environmental stewardship project; (b) Administrative fees charged by educational institutions in connection with an occupational training program sponsored by an approved company for its full-<br>time employees and specifically relating to an environmental stewardship project; (c) The cost of supplies, materials, and equipment used exclusively in an occupational training program sponsored by an approved company for its full-<br>time employees and specifically relating to an environmental stewardship project; (d) The cost of leasing a training facility where space is unavailable at an educational institution or at the premises of an approved company in <br>connection with an occupational training program sponsored by an approved <br>company for its full-time employees and specifically relating to an <br>environmental stewardship project; (e) Employee wages to be paid in connection with an occupational training program sponsored by an approved company for its full-time employees and <br>specifically relating to an environmental stewardship project; (f) Travel expenses paid by the approved company as incurred by its full-time employees resulting directly from the costs of transportation, lodging and <br>meals that are directly related to an occupational training program necessary <br>for the implementation of an environmental stewardship project; and (g) All other costs of a nature comparable to those described in this subsection; (12) "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; (13) "Environmental stewardship product" means any new manufactured product or substantially improved existing manufactured product that has a lesser or reduced <br>adverse effect on human health and the environment or provides for improvement to <br>human health and the environment when compared with existing products or <br>competing products that serve the same purpose. Such products may include but are <br>not limited to those which contain recycled content, minimize waste, conserve <br>energy or water, and reduce the amount of toxics disposed or consumed, but shall <br>not include products that are the result of the production of energy or energy <br>producing fuels; (14) "Environmental stewardship project" or "project" means: (a) The acquisition, construction, and installation of new equipment and, with respect thereto: <br>1. The construction, rehabilitation, and installation of improvements to <br>facilities necessary to house the new equipment, including surveys; 2. Installation of utilities including water, sewer, sewage treatment, gas, <br>electricity, communications, and similar facilities; 3. Off-site construction of utility extensions to the boundaries of the real <br>estate on which the facilities are located; All of which are utilized by an approved company or its affiliate to <br>manufacture an environmental stewardship product as reviewed and <br>recommended to the authority by the Energy and Environment Cabinet; and (b) The provision of an occupational training program to provide the employees of an approved company or its affiliate with the knowledge and skills <br>necessary to manufacture the new product; (15) "Final approval" means the action taken by the authority designating an eligible company that has previously received a preliminary approval as an approved <br>company and authorizing the execution of an environmental stewardship agreement <br>between the authority and the approved company; (16) "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; (17) "Inducement" means the Kentucky tax credit as authorized by KRS 154.48-010 to 154.48-035; (18) "Manufacturing" means any activity involving the manufacturing, processing, assembling, or production of any property, including the processing that results in a <br>change in the condition of the property and any related activity or function, together <br>with the storage, warehousing, distribution, and related office facilities; (19) "Preliminary approval" means the action taken by the authority designating an eligible company as a preliminarily approved company, and conditioning final <br>approval by the authority upon satisfaction by the eligible company of the <br>requirements set forth in the preliminary approval; (20) "Kentucky gross receipts" means Kentucky gross receipts as defined in KRS 141.0401; and (21) "Kentucky gross profits" means Kentucky gross profits as defined in KRS 141.0401. Effective: July 15, 2010 <br>History: Amended 2010 Ky. Acts ch. 24, sec. 207, effective July 15, 2010. -- Amended 2009 Ky. Acts ch. 11, sec. 45, effective June 25, 2009. -- Amended 2006 (1st Extra. <br>Sess.) Ky. Acts ch. 2, sec. 64, effective June 28, 2006. -- Amended 2006 Ky. Acts <br>ch. 149, sec. 222, effective July 12, 2006; and ch. 211, sec. 78, effective July 12, <br>2006. -- Created 2005 Ky. Acts ch. 168, sec. 143, effective March 18, 2005. 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." Legislative Research Commission Note (3/18/2005). 2005 Ky. Acts ch. 168, sec. 165, provides that this section shall apply to tax years beginning on or after January 1, <br>2005.
