{"data":{"id":"us-ky/krs-154.24-110","jurisdiction":"us-ky","citation":"KRS 154.24-110","heading":"Tax credits -- Employee job assessment fees.","body":"(1) The approved company shall be entitled to a tax credit equal to one hundred percent\n(100%) of the income tax and one hundred percent (100%) of the limited liability\nentity tax imposed by KRS 141.0401 that would otherwise be due to the\nCommonwealth by the a pproved company attributable to the economic\ndevelopment project, as limited by the provisions of this section and KRS 154.24 -\n130. The amount of the approved company's income, Kentucky gross profits, or\nKentucky gross receipts that is attributable to the e conomic development project\nshall be determined under KRS 141.407. The ordering of credits shall be as\nprovided in KRS 141.0205.\n(a) The tax credit allowed to the approved company shall be subtracted from the\napproved cost balance in the fiscal year of the  approved company for which\nthe tax return of the approved company is filed; and\n(b) By October 1 of each year, the Department of Revenue of the Commonwealth\nshall certify to the authority, in the form of an annual report, aggregate tax\ncredits claimed on tax returns filed during the fiscal year ending June 30 of\nthat year, and assessments taken by approved companies with respect to their\neconomic development projects during the prior calendar year under this\nsubchapter, and shall certify to the authority, within ninety (90) days from the\ndate an approved company has filed its state tax return, when an approved\ncompany has taken tax credits and assessments equal to its total inducements.\n(2) The approved company or, with the authority's consent, an affiliate  of the approved\ncompany may require each employee, subject to state tax imposed by KRS 141.020,\nas a condition of employment, to agree to pay a service and technology job creation\nassessment fee up to five percent (5%) of the gross wages exclusive of any noncash\nbenefits provided to an employee for each employee whose job has been deemed by\nthe authority to be created as a result of the economic development project,\nprovided that the service and technology job creation assessment fee shall not\nexceed the a mount determined in accordance with KRS 154.24 -150(5) if the\ncircumstances in that subsection apply. Where a person is already employed by the\napproved company at a site other than the site of the economic development project\nand where that employee is sub ject to state tax imposed by KRS 141.020, the\nemployee's job shall be deemed to have been created when the employee is\ntransferred to the site of the economic development project, provided that the\nemployee's existing job is filled with a new employee.\n(a) Each employee paying the assessment shall be entitled to a credit against his\nKentucky income tax required to be withheld under KRS 141.310 equal to\nfour-fifths (4/5) of the assessment;\n(b) If the assessment has been approved by the local jurisdiction as provided in\nKRS 154.24-150, each employee paying the assessment also shall be entitled,\nin the local jurisdiction in which the economic development project is located,\nto a credit against his local occupational license fee in the form of a\nsimultaneous adj ustment of his local occupational license fee withholding\nequal to one -fifth (1/5) of the assessment. If more than one (1) local tax is\nincurred, the one -fifth (1/5) assessment shall be prorated proportionately\namong the taxes unless one (1) local jurisdic tion agrees to forgo the receipt of\nthese taxes in an amount equal to the one-fifth (1/5) assessment, in which case\nno proration need be made;\n(c) If an approved company elects to impose the assessment as a condition of\nemployment, it shall be authorized t o deduct the assessment from each\npayment of wages to the employee;\n(d) No credit, or portion thereof, shall be allowed against any occupational license\nfee imposed by or dedicated solely to the board of education in a local\njurisdiction;\n(e) The approved company collecting an assessment shall make its payroll, books,\nand records available to the authority when the authority shall request, and\nshall file with the authority documentation pertaining to the assessment as the\nauthority may require; and\n(f) Any assessment of the wages of employees of an approved company in\nconnection with their employment at an economic development project shall\npermanently cease at the expiration of the agreement.\n(3) Notwithstanding subsection (2) of this section, if a local go vernment in which the\nproject is located has a local occupational license fee that is less than one percent\n(1%) and agrees to forgo all of its local occupational license fee, then the\nassessment shall be four percent (4%), all of which shall be contribute d by the\nCommonwealth, plus the percentage of the local occupational license fee that the\nlocal government has agreed to forgo. Each employee paying the assessment under\nthis subsection shall be entitled to a credit against Kentucky income tax, under KRS\n141.350, equal to four percent (4%) and a credit against the local occupational\nlicense fee equal to the local occupational license fee that the local jurisdiction has\nagreed to forgo.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=2782","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:54Z","sha256":"1648413e7bd61be3bea5798ba39bf532f24fb387047c1102c047829986321378","source_id":"us-ky","stale":false,"prev":"us-ky/krs-154.24-100","next":"us-ky/krs-154.24-120"},"notice":"GroundRules: Original legal text. Not legal advice."}