KRS 154.34-010: Definitions for subchapter.

As used in this subchapter:

(1) "Affiliate" has the same meaning as in KRS 154.32-010;

(2) "Agribusiness" has the same meaning as in KRS 154.32-010;

(3) "Alternative fuel production" has the same meaning as in KRS 154.32-010;

(4) "Approved company" means an eligible company approved unde r KRS 154.34-070

for a reinvestment project;

(5) "Approved costs" means the eligible equipment and related costs approved by the

authority that may be recovered by an approved company through the incentives

authorized by this subchapter;

(6) "Authority" me ans the Kentucky Economic Development Finance Authority

created by KRS 154.20-010;

(7) "Capital lease" has the same meaning as in KRS 154.32-010;

(8) "Carbon dioxide or hydrogen transmission pipeline" has the same meaning as in

KRS 154.32-010;

(9) "Coal se vering and processing" means activities resulting in an eligible company

being subject to the tax imposed by KRS Chapter 143;

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

(11) "Department" means the Department of Revenue;

(12) (a) "Eligible company" means any corporation, limited liability company,

partnership, limited partnership, sole proprietorship, business trust, or any

other entity:

1. Employing or intending to employ a mi nimum of twenty -five (25)

persons on a full-time bases; and

2. Engaged in or planning to engage in one (1) or more of the following

activities:

a. Headquarter operations;

b. Manufacturing;

c. Agribusiness;

d. Nonretail service or technology;

e. Coal severing and processing;

f. Alternative fuel, gasification, energy -efficient alternative fuel, or

renewable energy production;

g. Carbon dioxide or hydrogen transmission pipeline operations; or

h. Hospital operations;

at the same facility located and operating within the Commonwealth on

a permanent basis for a reasonable period of time preceding the request

for approval of a reinvestment project by the authority, including

facilities where operations have been temporarily suspended and which

meet the standards u nder KRS 154.34 -070 and related administrative

regulations promulgated by the authority.

(b) "Eligible company" does not include any company for which the primary

activity to be conducted within the Commonwealth is:

1. Forestry;

2. Fishing;

3. The provision of utilities;

4. Construction;

5. Wholesale trade;

6. Retail trade;

7. Real estate;

8. Rental and leasing;

9. Educational services;

10. Accommodation and food services; or

11. Public administration services;

(13) (a) "Eligible equipment and related costs" means:

1. Obligations incurred for labor and to vendors, contractors,

subcontractors, builders, suppliers, deliverymen, and materialmen in

connection with the acquisition, construction, equipping, rehabilitation,

and installation of a reinvestment project;

2. The cost of contract bonds and of insurance of all kinds that may be

required or necessary during the course of acquisition, construction,

equipping, rehabilitation, and installation of a reinvestment project

which is not paid by the vendor, supplier, deliveryman, contractor, or

otherwise provided;

3. All costs of architectural and engineering services, including estimates,

plans and specifications, preliminary investigations, and supervision of

construction, rehab ilitation and installation, as well as for the

performance of all the duties required by or consequent upon the

acquisition, construction, equipping, rehabilitation, and installation of a

reinvestment project;

4. All costs required to be paid under the ter ms of any contract for the

acquisition, construction, equipping, rehabilitation, and installation of a

reinvestment project;

5. All costs required for the installation of utilities, including but not

limited to water, sewer, sewer treatment, gas, electrici ty,

communications, and access to transportation, and including off -site

construction of the facilities paid for by the approved company; and

6. All other costs of a nature comparable to those described in this

paragraph.

(b) "Eligible equipment and relate d costs" does not include costs related to the

replacement or repair of existing machinery or equipment resulting from

normal wear and usage of the machinery or equipment;

(14) "Energy-efficient alternative fuel production" has the same meaning as in KRS

154.32-010;

(15) "Equipment" means manufacturing machinery equipment, computers, furnishings,

fixtures, and other assets installed by the approved company as part of the

reinvestment project;

(16) "Final approval" means the action taken by the authority designating a preliminarily

approved eligible company as an approved company to receive incentives under

this subchapter;

(17) "Full-time employee" means a person who:

(a) Is required to work a minimum of thirty-five (35) hours per week; or

(b) Works remotely away from the reinvestment project if all the following

conditions are met:

1. Is a Kentucky resident;

2. Whose job was created or retained as a result of the reinvestment

project; and

3. Whose payroll is expensed to the reinvestment project;

(18) "Gasification production" has the same meaning as in KRS 154.32-010;

(19) "Headquarters" has the same meaning as in KRS 154.32-010;

(20) "Heritage county" means a county where the county population ranking determined

by the cabinet under KRS 154.21 -017 scores gre ater than or equal to ninety -seven

(97);

(21) "Hospital" has the same meaning as in KRS 154.32-010;

(22) "Incentives" means the Kentucky tax credit as prescribed in this subchapter;

(23) "Kentucky gross profits" has the same meaning as in KRS 141.0401;

(24) "Kentucky gross receipts" has the same meaning as in KRS 141.0401;

(25) "Leased project" has the same meaning as in KRS 154.32-010;

(26) "Manufacturing" has the same meaning as in KRS 154.32-010;

(27) "Nonretail service or technology" has the same meaning as in KRS 154.32-010;

(28) "Personal protective equipment" has the same meaning as in KRS 154.32-010;

(29) "Preliminary approval" means the action taken by the authority designating an

eligible company as a preliminarily approved company;

(30) "Reinvestment agreement" means the agreement entered into pursuant to KRS

154.34-080 between the authority and an approved company with respect to a

reinvestment project;

(31) "Reinvestment project" means:

(a) A r einvestment in the facility of an eligible company and in the full -time

employees of an eligible company through the acquisition, construction, and

installation of new equipment and, with respect thereto, the construction,

rehabilitation, and installation of improvements to facilities necessary to

house the new equipment, including surveys; installation of utilities, including

water, sewer, sewage treatment, gas, electricity, communications, and similar

facilities; or off-site construction of utility extens ions to the boundaries of the

real estate on which the facilities are located;

(b) The expenditure of at least one million dollars ($1,000,000) in eligible

equipment and related costs for leased projects and at least two million five

hundred thousand dollars ($2,500,000) in eligible equipment and related costs

for all other reinvestment projects; and

(c) A reinvestment in a facility in order to allow for the production of vital

medications, personal protective equipment, or equipment necessary to

produce personal protective equipment;

(32) "Renewable energy production" has the same meaning as in KRS 154.32-010; and

(33) "Vital medications" has the same meaning as in KRS 154.32-010.