{"data":{"id":"us-ky/krs-154.20-226","jurisdiction":"us-ky","citation":"KRS 154.20-226","heading":"Application, approval, and review process.","body":"(1) The application, approval, and review process under KRS 154.20 -220 to 154.20 -\n229 shall be as follows.\n(a) An eligible company with a proposed data center project may submit an\napplication to the authority detailing the proposed data center project;\n(b) Upon review of the application and any additional information submitted, the\nauthority may, by resolution, give preliminary approval to an eligible\ncompany and authorize the negotiation and execution of a memorandum of\nagreement;\n(c) The memorandum of agreement shall establish the estimated eligible costs for\nthe qualified data center project;\n(d) Upon preliminary approval:\n1. The preliminarily approved company may:\na. Undertake the project in accordance with the memorandum of\nagreement;\nb. Begin to make the capital investment; and\nc. Begin to purchase or lease data center equipment exempt from\nsales and use tax as provided in KRS 139.499;\n2. The authority shall:\na. Notify the department of the preliminary approval, provide the\ndepartment with the information contained in the memorandum of\nagreement, and authorize the department to issue a certificate of\nexemption to the preliminarily approved company under KRS\n139.499; and\nb. Post the preliminarily approved company's name, the location of\nthe qualified data center project, and the amount of investment\ncosts on the cabinet's website; and\n3. The preliminarily approved company shall submit any documentation\nrequired by the authority upon request of the authority;\n(e) If, on or before the fifth anniversary of the memorandum of agreement, the\npreliminarily approved company fails to meet the minimum capital\ninvestment as established in the memorandum of agreement:\n1. The authority shall notify the department;\n2. The department shall revoke the certificate of exemption; and\n3. The preliminarily approved company shall immediately pay the tax that\nwas not paid as a result of the sales and use tax exemption upon receipt\nof the no tice of assessment issued by the department under KRS\n139.499; and\n(f) 1. To obtain final approval, a preliminarily approved company shall submit\ndocumentation required by the authority to confirm that the\nrequirements established in the memorandum of agre ement have been\nmet.\n2. Upon review and confirmation of the documentation, the authority may,\nby resolution, give final approval to the preliminarily approved\ncompany.\n3. Upon final approval, the approved company shall be finally approved\nfor the exemption  provided by KRS 139.499 for the term of the\nmemorandum of agreement.\n(2) (a) The authority may establish procedures and standards for the review and\napproval of eligible companies and their data center projects through the\npromulgation of administrative r egulations in accordance with KRS Chapter\n13A.\n(b) Standards to be used by the authority in reviewing and approving an eligible\ncompany and its data center project shall include but not be limited to:\n1. The creditworthiness of the eligible company;\n2. The proposed capital investment to be made; and\n3. The likelihood of the economic success of the proposed data center\nproject.\n(3) The application shall include but not be limited to:\n(a) The name of the applicant for the proposed data center project;\n(b) A description of the proposed data center project, including its location, the\ntotal proposed capital investment in the proposed project, and total proposed\neligible costs; and\n(c) Any other information the authority may require.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=55422","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:53Z","sha256":"3ea1b1cc7f795b37923a2b70514f4f73dcb9689971150018b6a4a07ec1b178fe","source_id":"us-ky","stale":false,"prev":"us-ky/krs-154.20-222","next":"us-ky/krs-154.20-228"},"notice":"GroundRules: Original legal text. Not legal advice."}