KRS 154.25-050: Supplemental projects -- Application for and approval of -- Project's

activation date -- Inducements, when authorized.

(1) If an approved company makes additional investments in the form of additional

jobs retention projects during the term of the initial jobs retention project, the

approved company may apply for, and the authority may approve, a supplemental

project.

(2) The authority, upon adoption of its final approval of a supplemental project, may

enter into, with any approved company, an amended agreement with respect to both

the initial jobs retention project and the supplemental project which shall jointly

make up its project. The terms and provisions of each amended agreement,

including the amount of approved costs, the amount of the tax credit pursuant to

KRS 154.25 -030, the job maintenance requirement established by the agreement,

and any limitations the authority may deem necessary, shall be determined by

negotiations between the authority and the approved company, except that each

agreement shall include the following provisions:

(a) Upon approval of a supplemental project, the amount the approved company

may recover through inducements for the initial project and any supplemental

projects shall be a negotiated percentage not to exc eed seventy -five percent

(75%) of the eligible costs from the initial project and all newly incurred

eligible costs from any supplemental projects, subject to the annual maximum

negotiated and approved by the authority. At the time a supplemental project

is approved, the recoverable amount and the annual maximum inducement for

the initial jobs retention project and any previous supplemental projects may

also be increased at the discretion of the authority pursuant to KRS 154.25 -

030;

(b) The activation date for a supplemental project shall be no more than three (3)

years from final approval of the supplemental project. Prior to the activation

date, the authority may extend the time for the completion of the jobs

retention project and compliance with the required investment upon request of

the approved company for good cause; however, the ten (10) year period for

the term of the agreement shall begin from the activation date. Within three

(3) months of the completion date for a supplemental project, the approve d

company shall document the actual cost of the project in a manner acceptable

to the authority. The authority may employ an independent consultant to

verify the cost of the supplemental project subject to reimbursement for the

cost of same from the approved company; and

(c) In consideration of the execution of the amended agreement, on the date

stated in the agreement, the approved company may be permitted during the

term of the amended agreement to take the inducements set forth in KRS

154.25-030(2)(b), ( 2)(c), and (3)(a), subject to the remaining terms of that

section.