KRS 154.32-040: Tax incentive agreement between authority and approved company --

Contents.

The authority, upon final approval of a company, may enter into a tax incentive

agreement with the approved company. The terms and conditions of the tax incentive

agreement shall be negotiated between the authority and the approved company. The

terms of the tax incentive agreement shall include but not be limited to the following

provisions:

(1) The maximum approved costs that may be recovered over the term of the t ax

incentive agreement and the annual maximum for approved costs;

(2) That the approved company shall provide the authority with all documentation

requested in a manner acceptable to the authority;

(3) Identification of the contribution of the local govern ment to the economic

development project, if any;

(4) The activation date, which shall be within two (2) years of final approval;

(5) That the approved company shall implement the activation date by notifying the

authority;

(6) That the approved company sh all provide documentation satisfactory to the

authority within the timeframes required by the authority that it has met the

minimum employment, minimum investment, and minimum wage requirements,

including employee benefits, established by KRS 154.32-020;

(7) That failure of the approved company to meet any of the minimum job, minimum

investment, or minimum wage requirements, including employee benefits,

established by KRS 154.32-020, on the activation date shall result in cancellation of

the tax incentive agreement;

(8) The term of the agreement, which shall not exceed fifteen (15) years for an

economic development project located in a heritage county, or ten (10) years for an

economic development project located in any other county;

(9) Notwithstanding subsection (8) of this section, an approved company that received

preliminary approval of an economic development project prior to January 1, 2023,

in which wage assessments were provided pursuant to KRS 154.32 -090 may

request a one (1) time extension for up t o five (5) years under the following

conditions:

(a) At the time the extension is granted, the approved company has received less

than seventy -five percent (75%) of the incentives awarded under the tax

incentive agreement; and

(b) The extension does not amend any provision of the tax incentive agreement

impacting the scope of the project or the maximum amount of incentives

awarded under the tax incentive agreement;

(10) That, if confirmed approved costs are less than the maximum approved costs

included in the tax incentive agreement, the confirmed approved co sts shall become

the maximum amount that may be recovered by the approved company;

(11) If the economic development project is a leased project, that future rent payments

that are included in eligible costs shall be included as confirmed approved costs

upon submission of a valid lease agreement executed after preliminary approval;

(12) Establishment of a job target and minimum wage target, including employee

benefits;

(13) A requirement that the job target and minimum wage target, including employee

benefits, be measured:

(a) On the activation date, against the actual new full -time jobs created and the

average wages, including employee benefits, paid for those jobs; and

(b) Annually during each year of the agreement, against the annual average of the

new ful l-time jobs and the average wages paid for those jobs, including

employee benefits;

(14) A provision requiring the approved company to notify the authority immediately if

the approved company sells or otherwise transfers or disposes of the land on which

an economic development project is located, if a lease relating to the economic

development project is terminated or lapses, or if the approved company ceases or

fundamentally alters operations at the economic development project;

(15) A provision detailing the reductions in incentives that will occur pursuant to KRS

154.32-030(4) if an approved company fails to meet its job target or minimum wage

target, including employee benefits;

(16) That the agreement may be assigned by the approved company upon the ado ption

of a resolution by the authority to that effect;

(17) That the approved company shall make available to the authority all of its records

pertaining to the economic development project, including but not limited to payroll

records, records relating to eligible costs, and any other records pertaining to the

economic development project that the authority may require;

(18) That the authority may share information with the department for the purposes of

monitoring and enforcing the terms of the tax incentive agreement;

(19) That, if an approved company fails to comply with its obligations under the tax

incentive agreement other than the jobs target or minimum wage target, the

authority may take any or all of the following actions:

(a) Suspend the incentives available to the approved company;

(b) Terminate the incentives available to the approved company; or

(c) Pursue any other remedy set forth in the tax incentive agreement or to which it

may be entitled by law; and

(20) Any other provisions not inconsiste nt with this subchapter and determined to be

necessary or appropriate by the parties to the tax incentive agreement.