{"data":{"id":"us-ky/krs-154.20-200","jurisdiction":"us-ky","citation":"KRS 154.20-200","heading":"Definitions for KRS 154.20-200 to 154.20-216.","body":"As used in KRS 154.20-200 to 154.20-216, unless the context clearly indicates otherwise:\n(1) \"Agreement\" means any agreement made pursuant to KRS 154.20 -210 between the\nauthority and an approved company with respect to an economic development\nproject in which inducements are granted.\n(2) \"Approval\" means action taken by the authority that authorizes the eligible company\nto receive inducements in connection with an economic development project under\nKRS 154.20 -200 to 154.20 -216 and that designates the eligib le company as an\napproved company.\n(3) \"Approved company\" means an eligible company that initiates an economic\ndevelopment project in the Commonwealth whose application has been approved by\nthe authority.\n(4) \"Approved expense\" means:\n(a) For an approved c ompany that establishes a new facility or expands an\nexisting facility:\n1. The cost of building and construction materials, upon which Kentucky\nsales and use tax as defined in KRS Chapter 139 is paid, purchased in\nconnection with the acquisition, construct ion, installation, equipping,\nand rehabilitation of an economic development project; and\n2. The cost of equipment purchased and used in research and development,\nat the economic development project, upon which Kentucky sales and\nuse tax as defined in KRS Chapter 139 is paid.\n(b) Approved expenses may only be incurred during the life of the project, not to\nexceed eighteen (18) months from the date an eligible company is designated\nan approved company by the authority. Provided, however, that the authority\nmay grant a twelve (12) month extension of the project for good cause shown.\nApproved expenses shall not include any expenditure made before the date the\ncompany is approved by the authority.\n(5) \"Authority\" means the Kentucky Economic Development Finance Authority.\n(6) \"Economic development project\" or \"project\" means a new or expanded service or\ntechnology, manufacturing, or tourism attraction activity, conducted by the\napproved company at a specific site in the Commonwealth, including the\nacquisition of re al property by an approved company and the construction,\ninstallation, and rehabilitation of fixtures, and facilities, necessary or desirable for\nimprovement of real estate owned, used, or occupied by the approved company,\nexcluding the cost of labor. The minimum investment for an economic development\nproject located in a preference zone shall be one hundred thousand dollars\n($100,000) and for a project not located in a preference zone, five hundred thousand\ndollars ($500,000).\n(7) \"Eligible company\" means any corporation, limited liability company, partnership,\nlimited partnership, sole proprietorship, business trust, or other legal entity that is\nprimarily engaged in manufacturing, service or technology, or operating or\ndeveloping a tourism attraction. Any company whose primary purpose is retail sales\nshall not be an eligible company.\n(8) \"Equipment used in research and development\" means:\n(a) \"Equipment\" means assets used in the operation of a business which are\nsubject to depreciation under Sections 167 and 168 of the Internal Revenue\nCode, including assets which are expensed under Section 179 of the Internal\nRevenue Code. The term \"equipment\"  shall not include any tangible personal\nproperty used to maintain, restore, mend, or repair machinery or equipment,\nconsumable operating supplies, office supplies, or maintenance supplies; and\n(b) \"Research and development\" means experimental or laborator y activity that\nhas as its ultimate goals the development of new products, the improvement of\nexisting products, the development of new uses for existing products, or the\ndevelopment or improvement of methods for producing products. \"Research\nand developme nt\" does not include testing or inspection of materials or\nproducts for quality control purposes, efficiency surveys, management studies,\nconsumer surveys, or other market research, advertising or promotional\nactivities, or research in connection with literary, historical or similar projects.\n(9) \"Inducements\" means the sales and use tax refund allowed to an approved company\nfor approved expenses under KRS 154.20-200 to 154.20-216.\n(10) \"Life of the project\" or \"project life\" means the eighteen (18) month p eriod\nbeginning on the date the company is designated as an approved company by the\nauthority and the twelve (12) month extension if the extension is granted by the\nauthority.\n(11) (a) \"Manufacturing\" means to make, assemble, process, produce, or perform a ny\nother activity that changes the form or conditions of raw materials and other\nproperty, and shall include any ancillary activity to the manufacturing process,\nsuch as storage, warehousing, distribution, and related office facilities;\n(b) \"Manufacturing\" does not include any activity involving the performance of\nwork classified by the divisions, including successor divisions, of mining in\naccordance with the \"North American Industry Classification System,\" as\nrevised by the United States Office of Managem ent and Budget from time to\ntime, or any successor publication.\n(12) \"Preference zone\" or \"zone\" means the geographic area that was designated as an\nenterprise zone pursuant to KRS 154.45 -050, and that was in existence as an\nenterprise zone on December 31,  2003. No enterprise zone may be expanded after\nMarch 18, 2005. Enterprise zone designations that are scheduled to expire, pursuant\nto KRS 154.45 -050(2), shall expire as scheduled. All preference zones shall expire\non December 31, 2007.\n(13) \"Sales and use tax\" means those taxes paid to the Commonwealth for the purchase\nof goods pursuant to KRS Chapter 139.\n(14) (a) \"Service or technology\" means either:\n1. Any activity involving the performance of work except work classified\nby the divisions, including succ essor divisions, of agriculture, forestry\nand fishing, mining, utilities, construction, manufacturing, wholesale\ntrade, retail trade, real estate rental and leasing, educational services,\naccommodation and food services, and public administration in\naccordance with the \"North American Industry Classification System,\"\nas revised by the United States Office of Management and Budget from\ntime to time, or any successor publication; or\n2. Regional or headquarters operations of an entity engaged in an activity\nlisted in subparagraph 1. of this paragraph.\n(b) Notwithstanding paragraph (a) of this subsection, \"service or technology\"\nshall not include any activity involving the performance of work by an\nindividual who is providing direct service to the public pursuan t to a license\nissued by the state or an association that licenses in lieu of the state.\n(15) \"Tourism attraction\" shall have the meaning assigned in KRS 148.851.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=2685","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:53Z","sha256":"b49a511a3a29a0e070078a10a30acbb4e548191c5ad6aeb6414fb8166e315bf8","source_id":"us-ky","stale":false,"prev":"us-ky/krs-154.20-195","next":"us-ky/krs-154.20-202"},"notice":"GroundRules: Original legal text. Not legal advice."}