{"data":{"id":"us-ky/krs-154.24-010","jurisdiction":"us-ky","citation":"KRS 154.24-010","heading":"Definitions for KRS  154.24-010 to 154.24-150.","body":"The  following words and terms, unless the context clearly indicates a different\nmeaning,  shall have the following respective meanings  in KRS  154.24-010 to\n154.24-150:\n(1) \"Affiliate\" has the same meaning as in KRS 154.22-010;\n(2) \"Agreement\" means the service and technology agreement made  pursuant to\nKRS  154.24-120, between  the authority and an approved company  with\nrespect to an economic development project;\n(3) \"Approved  company\"  means  any eligible company  seeking to locate an\neconomic  development project from outside the Commonwealth  into the\nCommonwealth,  or undertaking an economic  development project in the\nCommonwealth  for which it is approved pursuant to KRS 154.24-100;\n(4) \"Approved costs\" means fifty percent (50%) of the total of the start-up costs up\nto a maximum  of ten thousand dollars ($10,000) per new full-time job created\nand to be held by a Kentucky resident subject to the personal income tax of the\nCommonwealth,  plus fifty percent (50%) of the annual rent for each elapsed\nyear of the service and technology agreement;\n(5) \"Assessment\" means  the \"service and technology job creation assessment\nfee\" authorized by KRS 154.24-110;\n(6) \"Authority\" means the Kentucky Economic Development Finance Authority, as\ncreated in KRS 154.20-010;\n(7) \"Average hourly wage\" means  the wage and employment data published by\nthe Department of Workforce Development within the Education and Labor\nCabinet collectively translated into wages per hour based on a two thousand\neighty (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(8) \"Commonwealth\"  means the Commonwealth  of Kentucky;\n(9) \"Economic  development project\" or \"project\" means  a new  or expanded\nservice or technology activity conducted at a new or expanded site by:\n(a) An approved company; or\n(b) An approved company and its affiliate or affiliates;\n(10) \"Eligible company\"  means  any  corporation, limited liability company,\npartnership, limited partnership, sole proprietorship, business trust, or any other\nentity engaged  in service or technology and  meeting  the standards\npromulgated by the authority in accordance with KRS Chapter 13A;\n(11) \"Employee benefits\" means nonmandated costs paid by an approved company\nfor its full-time employees for health insurance, life insurance, dental insurance,\nvision insurance, defined benefits, 401(k) or similar plans;\n(12) \"Final approval\" means the action taken by the authority authorizing the eligible\ncompany  to receive inducements under this subchapter;\n(13) \"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 tax imposed\nby KRS 141.020;\n(14) \"In lieu of credits\" means  a local government appropriation to the extent\npermitted by law, or other form of local government grant or service benefit,\ndirectly related to the economic development project and in an amount equal to\none  percent (1%) of employees' gross wages, exclusive of any noncash\nbenefits provided to an employee, or the provision by a local government of an\nin-kind contribution directly related to the economic development project and in\nan amount equal to one half (1/2) of the rent for the duration of the agreement;\n(15) \"Inducements\" means  the tax credits allowed and the assessment authorized\nby  KRS  154.24-110, which are intended to induce companies engaged  in\nservice and technology industries to locate or expand in the Commonwealth;\n(16) \"Person\"  means  an  individual, sole proprietorship, partnership, limited\npartnership, joint venture, trust, unincorporated organization, association,\ncorporation, limited liability company, institution, entity or government, whether\nfederal, state, county, city, or otherwise, including without limitation any\ninstrumentality, division, political subdivision, district, court, agency, or\ndepartment thereof;\n(17) \"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(18) \"Rent\" means:\n(a) The actual annual rent or leasing fee paid by an approved company to a\nbona fide entity negotiated at arms length for the use of a building by the\napproved  company  to conduct the approved activity for which the\ninducement has been granted; or\n(b) The  fair rental value on an annual basis in a building owned  by the\napproved  company  of the space used by the approved company  to\nconduct the approved activity for which the inducement has been granted\nas determined by the authority using criteria which is customary in the\nreal estate industry for the type of building being used. The fair rental\nvalue shall include an analysis of the cost of amortizing the cost of land\nand building over the period of time customary in the real estate industry\nfor the type of building and for the land being utilized;\n(c) Rent shall include the customary cost of occupancy, including but not\nlimited to property taxes, heating and air-conditioning, electricity, water,\nsewer, and insurance;\n(19)(a) \"Service or technology\" means either:\n1. Any  activity involving the performance of work, except work\nclassified by  the divisions, including successor divisions, of\nagriculture, forestry and  fishing, mining, utilities, construction,\nmanufacturing, wholesale trade, retail trade, real estate rental and\nleasing, educational services, accommodation  and food services,\nand  public administration in accordance with the \"North American\nIndustry Classification System,\" as revised by the United States\nOffice of Management  and  Budget from time to time, or any\nsuccessor publication; or\n2. Regional or headquarters operations of an entity engaged in an\nactivity listed 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 pursuant to a\nlicense issued by the state or an association that licenses in lieu of the\nstate unless seventy-five percent (75%) of the services provided by the\neligible company from the project are provided to persons located outside\nthe Commonwealth  during the period in which it receives the inducements\nauthorized in KRS 154.24-110; and\n(20) \"Start-up costs\" means the acquisition cost associated with the project related\nto the furnishing and equipping the building for ordinary business functions,\nincluding computers, furnishings, office equipment, the  relocation of\nout-of-state equipment, and nonrecurring costs of fixed telecommunication\nequipment as verified and approved by the authority in accordance with KRS\n154.24-130.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=52365","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:54Z","sha256":"005947dc61eab4574d0927d65a25e8594de65f3d882d3d43ea354a5f3d4418d7","source_id":"us-ky","stale":false,"prev":"us-ky/krs-154.230","next":"us-ky/krs-154.24-020"},"notice":"GroundRules: Original legal text. Not legal advice."}