{"data":{"id":"us-ky/krs-154.20-229","jurisdiction":"us-ky","citation":"KRS 154.20-229","heading":"Memorandum of agreement -- Required terms.","body":"The authority, with preliminary approval of an eligible company, may execute a\nmemorandum of agreement with the eligible company. The terms and conditions of the\nmemorandum of agreement shall be negotiated between the authority and the company.\nThe terms o f the memorandum of agreement shall include but not be limited to the\nfollowing provisions:\n(1) The estimated capital investment for the qualified data center project;\n(2) That the preliminarily approved company shall provide the authority with all\ndocumentation requested in a manner acceptable to the authority and within the\ntimeframes required by the authority related to the minimum capital investment\nrequirement to be used in monitoring compliance of the memorandum of\nagreement;\n(3) That failure of a pre liminarily approved company to meet the minimum capital\ninvestment on or before the fifth anniversary of the preliminary approval shall result\nin cancellation of the memorandum of agreement with the preliminarily approved\ncompany;\n(4) The term of the agreement, which shall not exceed:\n(a) Fifteen (15) years for a qualified data center project of a project organizer; or\n(b) 1. Fifty (50) years for a qualified data center project having a capital\ninvestment of at least four hundred fifty million dollars ($450 ,000,000);\nor\n2. Twenty-five (25) years for any other qualified data center project;\n(5) A provision requiring the preliminarily approved company to notify the authority\nimmediately if the eligible company sells or otherwise transfers or disposes of the\nland on which a qualified data center project is located;\n(6) Authorization for the departm ent to issue a certificate of exemption to the\npreliminarily approved company under KRS 139.499;\n(7) A provision detailing the elimination of the sales and use tax exemption and the\nnotice of assessment by the department provided under KRS 139.499 that sha ll\noccur if the preliminarily approved company fails to make the minimum capital\ninvestment;\n(8) (a) A statement that the memorandum of agreement may remain in effect, even if\nthere is a future transfer, sale, or disposition, directly or indirectly, of the\nqualified data center project, upon the adoption of a resolution by the\nauthority to that effect.\n(b) If continuation of the sales and use tax exemption is desired by the subsequent\nowner:\n1. The memorandum of agreement may be assigned to that owner under\nparagraph (a) of this subsection provided the subsequent owner assumes\nthe prior owner's obligations under that agreement; or\n2. The subsequent owner shall enter into a memorandum of agreement\nwith the authority for the remainder of the eligibility period.\n(c) The authority shall notify the department regarding the events that transpire\nunder paragraphs (a) and (b) of this subsection;\n(9) That the approved company shall make available to the authority all of its records\npertaining to the qualified data cen ter project, including but not limited to records\nrelating to eligible costs and any other records pertaining to the project that the\nauthority may require;\n(10) (a) That the authority may share information with the department; and\n(b) That the department may share information with the authority;\nfor the purposes of monitoring and enforcing the terms of the memorandum of\nagreement;\n(11) That, if the preliminarily approved company fails to comply with its obligations\nunder the memorandum of agreement by the  fifth anniversary of the preliminary\napproval, the authority shall:\n(a) Suspend the memorandum of agreement;\n(b) Terminate the incentives available to the preliminarily approved company\nunder the memorandum of agreement;\n(c) Notify the department of the authority's actions;\n(d) Instruct the department to proceed with the notice of assessment; and\n(e) Pursue any other remedy set forth in the memorandum of agreement or to\nwhich it may be entitled by law; and\n(12) Any other provisions not inconsistent with th is subchapter and determined to be\nnecessary or appropriate by the parties to the memorandum of agreement.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=55424","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:53Z","sha256":"fb0fef8c8a63592623f52a5f6aec309a9057d83b91db56ed6ffe7a5a6eac7ac8","source_id":"us-ky","stale":false,"prev":"us-ky/krs-154.20-228","next":"us-ky/krs-154.20-230"},"notice":"GroundRules: Original legal text. Not legal advice."}