KRS 154.32-020: Incentives to induce location of economic development projects in the

Commonwealth -- Purposes -- Requirements -- Summary of incentives

available -- Legislative findings.

(1) The purposes of this subchapter are:

(a) To provide incentives for eligible companies and to encourage the location or

expansion of manufacturing facilities, agribusiness operations, nonretail

service or technology facilities, headquarters operations, alternative fuel

production facilities, gasification production faci lities, energy -efficient

alternative fuel production facilities, renewable energy production facilities,

carbon dioxide or hydrogen transmission pipelines, coal severing and

processing, and hospital operations in the Commonwealth to advance the

public purposes of:

1. Creation of new jobs that, but for the incentives offered by the authority,

would not exist within the Commonwealth;

2. Creation of new sources of tax revenues for the support of public

services provided by the Commonwealth;

3. Improvement in t he quality of life for Kentucky citizens through the

creation of sustainable jobs with higher salaries; and

4. Providing an economic stimulus to bolster in -state production of vital

medications and personal protective equipment; and

(b) To provide balanced incentives for companies that locate in heritage counties

in recognition of the depressed economic conditions in those counties and the

increased need for the growth and development caused by the depressed

economic conditions.

(2) To qualify for the incentives provided by subsection (3) of this section, an approved

company shall:

(a) Incur eligible costs of at least one hundred thousand dollars ($100,000);

(b) Create at least ten (10) new full -time jobs and maintain an annual average

number of at least ten (10) new full-time jobs; and

(c) 1. Pay at least ninety percent (90%) of all new full -time employees whose

jobs were created as a result of the economic devel opment project a

minimum wage of at least two hundred percent (200%) of the federal

minimum wage in heritage counties, and three hundred percent (300%)

of the federal minimum wage in any other counties throughout the term

of the economic development project; and

2. Provide employee benefits for all new full -time jobs equal to at least

fifteen percent (15%) of the minimum wage requirement established by

subparagraph 1. of this paragraph. If the eligible company does not

provide employee benefits equal to at least fifteen percent (15%) of the

minimum wage requirement established by subparagraph 1. of this

paragraph, the eligible company may still qualify for incentives if it

provides the full -time employees hired as a result of the economic

development project total hourly compensation equal to or greater than

one hundred fifteen percent (115%) of the minimum wage requirement

established in subparagraph 1. of this paragraph through increased

hourly wages combined with employee benefits; or

(d) Produce vital med ications, personal protective equipment, or equipment

necessary to produce personal protective equipment.

(3) (a) The incentives available under this subchapter are as follows:

1. Tax credits of up to one hundred percent (100%) of the Kentucky

income tax i mposed under KRS 141.020 or 141.040 and the limited

liability entity tax imposed under KRS 141.0401 on the income,

Kentucky gross profits, or Kentucky gross receipts of the approved

company generated by or arising from the economic development

project, as set forth in KRS 141.415 and 154.32-070;

2. Authorization for the approved company to impose a wage assessment

against the gross wages of each new employee subject to the Kentucky

income tax as provided in KRS 154.32-090; and

3. An approved company receivi ng preliminary approval after July 1,

2026, may receive, in addition to the inducements provided under

subparagraphs 1. and 2. of this paragraph, an income tax credit as

provided under KRS 154.32-070.

(b) Notwithstanding any provision of law to the contrar y, for any economic

development project with an eligible investment of more than two hundred

million dollars ($200,000,000), the authority may authorize approval to the

economic development project based upon terms and incentives applicable to

economic development project locating in a heritage county.

(4) The General Assembly hereby finds and declares that the authority granted in this

subchapter and the purposes accomplished hereby are proper governmental and

public purposes for which public moneys may be expended, and that the

inducement of the location of economic development projects within the

Commonwealth is of paramount importance to the economic well -being of the

Commonwealth.