{"data":{"id":"us-ky/krs-154.22-010","jurisdiction":"us-ky","citation":"KRS 154.22-010","heading":"Definitions for KRS  154.22-010 to 154.22-080.","body":"The  following words and terms as used in KRS  154.22-010 to 154.22-080, unless\nthe context clearly indicates a different meaning, shall have the following meanings:\n(1) \"Activation date\" means  a date selected by an approved company  in the tax\nincentive agreement at any time within a two (2) year period after the date of\nfinal approval of the tax incentive agreement by the authority;\n(2) \"Affiliate\" means the following:\n(a) Members  of a family, including only brothers and sisters of the whole or\nhalf blood, spouse, ancestors, and lineal descendants of an individual;\n(b) An individual, and a corporation more than fifty percent (50%) in value of\nthe outstanding stock of which is owned, directly or indirectly, by or for\nthat individual;\n(c) An  individual, and a limited liability company  of which more than fifty\npercent (50%) of the capital interest or profits are owned  or controlled,\ndirectly or indirectly, by or for that individual;\n(d) Two  (2) corporations which are members  of the same controlled group,\nwhich includes and is limited to:\n1. One  (1) or more chains of corporations connected through stock\nownership with a common  parent corporation, if:\na. Stock possessing more than fifty percent (50%) of the total\ncombined voting power of all classes of stock entitled to vote or\nmore than fifty percent (50%) of the total value of shares of all\nclasses of stock of each of the corporations, except the\ncommon  parent corporation, is owned  by one (1) or more of\nthe other corporations; and\nb. The common  parent corporation owns stock possessing more\nthan fifty percent (50%) of the total combined voting power of\nall classes of stock entitled to vote or more than fifty percent\n(50%) of the total value of shares of all classes of stock of at\nleast one (1) of the other corporations, excluding, in computing\nthe voting power or value, stock owned  directly by the other\ncorporations; or\n2. Two  (2) or more corporations, if five (5) or fewer persons who are\nindividuals, estates, or trusts own stock possessing more than fifty\npercent (50%) of the total combined voting power of all classes of\nstock entitled to vote or more than fifty percent (50%) of the total\nvalue of shares of all classes of stock of each corporation, taking\ninto account the stock ownership of each person only to the extent\nthe stock ownership is identical with respect to each corporation;\n(e) A grantor and a fiduciary of any trust;\n(f) A fiduciary of a trust and a fiduciary of another trust, if the same person is\na grantor of both trusts;\n(g) A fiduciary of a trust and a beneficiary of that trust;\n(h) A fiduciary of a trust and a beneficiary of another trust, if the same person\nis a grantor of both trusts;\n(i) A  fiduciary of a trust and a corporation more than fifty percent (50%) in\nvalue of the outstanding stock of which is owned, directly or indirectly, by\nor for the trust or by or for a person who is a grantor of the trust;\n(j) A fiduciary of a trust and a limited liability company more than fifty percent\n(50%) of the capital interest, or the interest in profits, of which is owned\ndirectly or indirectly, by or for the trust or by or for a person who is a\ngrantor of the trust;\n(k) A  corporation, a partnership, and a limited partnership, if the same\npersons own:\n1. More than fifty percent (50%) in value of the outstanding stock of the\ncorporation; and\n2. More  than fifty percent (50%) of the capital interest, or the profits\ninterest, in the partnership or limited partnership;\n(l) A corporation and a limited liability company, if the same persons own:\n1. More than fifty percent (50%) in value of the outstanding stock of the\ncorporation; and\n2. More  than fifty percent (50%) of the capital interest or the profits in\nthe limited liability company;\n(m) A  partnership, limited partnership, and a limited liability company, if the\nsame  persons own:\n1. More  than fifty percent (50%) of the capital interest or profits in the\npartnership or limited partnership; and\n2. More  than fifty percent (50%) of the capital interest or the profits in\nthe limited liability company;\n(n) An  S corporation and another S corporation, if the same  persons own\nmore  than fifty percent (50%) in value of the outstanding stock of each\ncorporation, S corporation designation being the same as that designation\nunder the Internal Revenue Code of 1986, as amended; or\n(o) An  S corporation and a C corporation, if the same  persons own more\nthan fifty percent (50%) in value of the outstanding stock of each\ncorporation; S and C corporation designations being the same as those\ndesignations under the Internal Revenue Code of 1986, as amended;\n(3) \"Agribusiness\" means  any activity involving the processing of raw agricultural\nproducts, including timber, or the providing of value-added functions with\nregard to raw agricultural products;\n(4) \"Approved  company\"  means  any eligible company  seeking to locate an\neconomic development project in a qualified county, which eligible company is\napproved by the authority pursuant to KRS 154.22-010 to 154.22-080;\n(5) \"Approved costs\" means:\n(a) Obligations incurred for labor and to contractors, subcontractors, builders,\nand  materialmen in connection with the acquisition, construction,\ninstallation, equipping, and rehabilitation of an economic development\nproject;\n(b) The  cost of acquiring land or rights in land and any cost incidental\nthereto, including recording fees;\n(c) The  cost of contract bonds and of insurance of all kinds that may  be\nrequired or necessary during the course of acquisition, construction,\ninstallation, equipping, and rehabilitation of an economic development\nproject which is not paid by the contractor or contractors or otherwise\nprovided for;\n(d) All costs of architectural and engineering services, including test borings,\nsurveys, estimates, plans and specifications, preliminary investigations,\nand supervision of construction, as well as for the performance of all the\nduties required by or consequent upon the acquisition, construction,\ninstallation, equipping, and rehabilitation of an economic development\nproject;\n(e) All costs which shall be required to be paid under the terms of any\ncontract or contracts for the acquisition, construction, installation,\nequipping, and rehabilitation of an economic development project; and\n(f) All other costs of a nature comparable to those described above;\n(6) \"Assessment\" means the job development assessment fee authorized by KRS\n154.22-010 to 154.22-080;\n(7) \"Authority\" means the Kentucky Economic Development Finance Authority as\ncreated in KRS 154.20-010;\n(8) \"Average hourly wage\" means  the wage and employment data published by\nthe Department of Workforce Development in the Education and Labor Cabinet\ncollectively translated into wages per hour based on a two thousand eighty\n(2,080) hour work year for the following sectors:\n(a) Manufacturing;\n(b) Transportation, communications, and public utilities;\n(c) Wholesale and retail trade;\n(d) Finance, insurance, and real estate; and\n(e) Services;\n(9) \"Commonwealth\"  means the Commonwealth  of Kentucky;\n(10)(a) \"Economic development project\" means and includes:\n1. The acquisition of ownership in any real estate in a qualified county\nby  the authority, the approved manufacturing or agribusiness\ncompany, or its affiliate;\n2. The  present ownership of real estate in a qualified county by the\napproved manufacturing or agribusiness company or its affiliate;\n3. The  acquisition or present ownership of improvements or facilities,\nas described in paragraph (b) of this subsection, on land which is\npossessed or is to be possessed by the approved manufacturing or\nagribusiness company pursuant to a ground lease having a term of\nsixty (60) years or more;\n4. The new construction of an electric generation facility; and\n5. The  legal possession of facilities by an approved company  or its\naffiliate pursuant to a lease having a term equal to or greater than\nfifteen (15) years with a third-party entity, negotiated at arm's length,\nif the facility will be used by the approved company  to conduct the\napproved activity for which the inducement has been granted. An\neconomic  development project qualifying under this subparagraph\nshall only be eligible for credits against equipment and costs related\nto installation of equipment and for purposes of the tax credits\nprovided under the provisions of KRS  154.22-010 to 154.22-080\nonly to the extent of twenty thousand dollars ($20,000) per job\ncreated by and maintained at the economic development project.\nNotwithstanding KRS  154.22-050(8) and 154.22-060, an economic\ndevelopment  project qualifying under this subparagraph shall be\neligible only for the aggregate assessments  pursuant to KRS\n154.22-070 withheld by the approved company each year and shall\nnot be eligible for credit against Kentucky income tax and limited\nliability entity tax.\n(b) For purposes of paragraph (a)1. and 2. of this subsection, ownership of\nreal estate shall only include fee ownership of real estate and possession\nof real estate pursuant to a capital lease as determined in accordance\nwith Statement of Financial Accounting Standards No. 13, Accounting for\nLeases, issued by the Financial Accounting Standards Board, November\n1976. With respect to paragraph (a)1., 2., and 3. of this subsection or this\nparagraph, the construction, installation, equipping, and rehabilitation of\nimprovements, including fixtures and equipment, and facilities necessary\nor desirable for improvement of the real estate, including surveys; site\ntests and  inspections; subsurface site work; excavation; removal of\nstructures, roadways, cemeteries, and other surface obstructions; filling,\ngrading, and provision of drainage, storm water retention, installation of\nutilities such  as  water, sewer, sewage  treatment, gas, electricity,\ncommunications, and  similar facilities; off-site construction of utility\nextensions to the boundaries of the real estate; and the acquisition,\ninstallation, equipping, and rehabilitation of manufacturing facilities on the\nreal estate, for use and occupancy by the approved company  or its\naffiliates for manufacturing purposes, electric generation, or  for\nagribusiness purposes. Pursuant to paragraph (a)3. and  5. of this\nsubsection, an economic development project shall not include lease\npayments made pursuant to a ground lease for purposes of the tax credits\nprovided under the provisions of KRS 154.22-010 to 154.22-080;\n(11) \"Electric generation\" means the generation of electricity for resale by means of\ncombusting at least fifty percent (50%) of the total fuel used to generate\nelectricity from coal or from gas derived from coal;\n(12) \"Eligible company\"  means  any  corporation, limited liability company,\npartnership, limited partnership, sole proprietorship, business trust, or any other\nentity engaged in manufacturing, electric generation, or in agribusiness;\n(13) \"Employee benefits\" means  nonmandated  costs paid by an eligible company\nfor its full-time employees for health insurance, life insurance, dental insurance,\nvision insurance, defined benefits, 401(k), or similar plans;\n(14) \"Final approval\" means the action taken by the authority authorizing the eligible\ncompany  to receive inducements under this subchapter;\n(15) \"Full-time employee\" means a person employed by an approved company for a\nminimum  of thirty-five (35) hours per week and subject to the state income tax\nimposed by KRS 141.020;\n(16) \"Inducements\" means  the assessment and the tax credits allowed by KRS\n154.22-060;\n(17) \"Manufacturing\" means  any activity involving the manufacturing, processing,\nassembling, or production of any property, including the processing resulting in\na change in the conditions of the property and any activity related to it, together\nwith the storage, warehousing, distribution, and  related office facilities;\nhowever, \"manufacturing\" shall not include mining, coal or mineral processing,\nor extraction of minerals;\n(18) \"Preliminary approval\" means  the action taken by the authority conditioning\nfinal approval by the authority upon satisfaction by the eligible company of the\nrequirements under this subchapter;\n(19) \"Qualified county\" means  any county certified as such by the authority\npursuant to KRS 154.22-010 to 154.22-080;\n(20) \"Revenues\" shall not be considered state funds;\n(21) \"State agency\" shall have the meaning assigned to the term in KRS 56.440(8);\n(22) \"Tax incentive agreement\" means  the agreement entered into, pursuant to\nKRS  154.22-050, between  the authority and an approved company  with\nrespect to an economic development project;\n(23) \"Kentucky gross receipts\" means \"Kentucky gross receipts\" as defined in KRS\n141.0401; and\n(24) \"Kentucky gross profits\" means  \"Kentucky gross profits\" as defined in KRS\n141.0401.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=52361","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:54Z","sha256":"bd90c1fcad4482794dcf3988ab3a5f9676b82e901e24ff2aeaba897c9f164b8f","source_id":"us-ky","stale":false,"prev":"us-ky/krs-154.210","next":"us-ky/krs-154.22-020"},"notice":"GroundRules: Original legal text. Not legal advice."}