KRS 154.31-020: Annual incentive cap established -- Requirements for qualification for

incentives -- Maximum incentives available to an approved company.

(1) The maximum amount of sales and use tax incentives that may be committed in

each fiscal year by the authority shall be capped at twenty million dollars

($20,000,000) for building and construction materials, and five million dollars

($5,000,000) for equipment used for research and development, electronic

processing, or flight simulation.

(2) (a) To qualify for the sales and use tax incentives available under this subchapter,

an eligible company shall make a minimum investment of at least five

hundred thousand dollars ($500,000) in an economic development project,

including the cost of land, but excluding the cost of labor.

(b) To qualify for the sales and use tax incentive available under this subchapter

for electronic processing equipment, in addition to the requirements of

paragraph (a) of this subsection, the eligible company shall spend an aggregate

amount of at least fifty thousand dollars ($50,000) on electronic processing

equipment installed as part of the economic development project.

(3) (a) The maximum sales and use tax incentive available to an approved company

under this subchapter is the total amount of sales and use tax paid on

purchases made on the following items, up to the approved recovery amount

after approval by the authority:

1. Building and construction materials;

2. Research and development equipment;

3. Electronic processing equipment; and

4. Flight simulation equipment.

(b) An approved company may qualify for a sales and use tax incentive in more

than one (1) category listed in paragraph (a) of this subsection for the same

economic development project. If the authority approves an eli gible company

to receive the sales and use tax incentives in more than one (1) category, the

authority shall allocate the incentives to the appropriate cap established by

subsection (1) of this section.