KRS 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:

(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 agreement by the authority;

(2) "Affiliate" has the same meaning as in KRS 154.22-010;

(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 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 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

acquisition, construction, rehabilitation, and installation of an economic

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 installation of an economic project which is not paid by

the vendor, supplier, 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, rehabilitation, and installation, as well as for the

performance of all the duties required by or consequent upon the

acquisition, construction, rehabilitation, 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 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 similar facilities, and including offsite construction of the facilities paid

for by 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 Department of Workforce Development in the Education and Labor Cabinet

collectively translated into wages per hour based on a two thousand eighty

(2,080) hour work year for the following sectors:

(a) Manufacturing;

(b) Transportation, communications, and public utilities;

(c) Wholesale and retail trade;

(d) Finance, insurance, and real estate; and

(e) Services;

(10) "Commonwealth" means the Commonwealth of Kentucky;

(11)(a) "Economic development project" or "project" means and includes:

1. The acquisition of ownership in any real estate by the approved

manufacturing or agribusiness company or its affiliate;

2. The present ownership of real estate by the approved

manufacturing or agribusiness company or its affiliate;

3. The acquisition or present ownership of improvements or facilities,

as described in paragraph (b) of this subsection, on land which is

possessed or is to be possessed by the approved company

pursuant to a ground lease having a term of sixty (60) years or

more; and

4. The legal possession of facilities by an approved company or its

affiliate pursuant to a lease having a term equal to or greater than

ten (10) years with a third-party entity, negotiated at arm's length, if

the facility will be used by the approved company to conduct the

approved activity for which the inducement has been granted. An

economic development project qualifying under this subparagraph

shall only be eligible for credits against equipment and costs related

to installation of equipment and for purposes of the tax credits

provided under the provisions of KRS 154.28-010 to 154.28-090

only to the extent of twenty thousand dollars ($20,000) per job

created by and maintained at the economic development project.

Notwithstanding KRS 154.28-090, an economic development project

qualifying under this subparagraph shall be eligible only for the

aggregate assessments pursuant to KRS 154.28-110 withheld by

the approved company each year and shall not be eligible 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 estate pursuant to a capital lease as determined in accordance

with Statement of Financial Accounting Standards No. 13, Accounting for

Leases, issued by the Financial Accounting Standards Board, November

1976. With respect to paragraph (a)1., 2., and 3. of this subsection, the

construction, installation, equipping, and rehabilitating of improvements,

including fixtures and equipment directly involved in the manufacturing

process, and facilities necessary or desirable for improvement of the real

estate shall include: surveys, site tests, and inspections; subsurface site

work and excavation; removal of structures, roadways, cemeteries, and

other site obstructions; filling, grading, provision of drainage, and storm

water retention; installation of utilities such as water, sewer, sewage

treatment, gas, electricity, communications, and similar facilities; offsite

construction of utility extensions to the boundaries of the real estate; and

the acquisition, installation, equipping, and rehabilitation of manufacturing

facilities or agribusiness operations on the real estate for the use of the

approved company or its affiliates for manufacturing or agribusiness

operational purposes. Pursuant to paragraph (a)3. and 4. of this

subsection and this paragraph, an economic development project shall

not include lease payments made pursuant to a ground lease for

purposes of the tax credits provided under the provisions of KRS

154.28-010 to 154.28-100. An economic development project shall

include the equipping of a facility with equipment but, for purposes of the

tax credits provided under the provisions of KRS 154.28-010 to

154.28-090, only to the extent of twenty thousand dollars ($20,000) per

job 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 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 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

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 change in the conditions of the property, and any activity functionally related

to it, together with storage, warehousing, distribution, and related office

facilities; however, "manufacturing" shall not include mining, coal or mineral

processing, or extraction of minerals;

(17) "State agency" shall have the meaning assigned to the term in KRS 56.440(8);

(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.