{"data":{"id":"us-ky/krs-154.25-040","jurisdiction":"us-ky","citation":"KRS 154.25-040","heading":"Wage assessment -- Tax credits for employees -- Department of","body":"Revenue to make annual report to authority.\n(1) The approved company may require that each employee subject to the income tax\nimposed by KRS 141.020, whose job was preserved or created as a result of the\nproject, as a condition of employment or the retention of employment, agree to pay\nan assessment up to one hundred percent (100%) of the individual income tax rate\nimposed by KRS 141.020 for each employee subject to the income ta x imposed by\nKRS 141.020. The Commonwealth's wage assessment shall be equal to the\nfollowing:\n(a) Up to eighty percent (80%) of the individual income tax rate imposed by KRS\n141.020 if the project is located in a local jurisdiction where:\n1. No local occupational license fee is imposed;\n2. a. A local occupational fee greater than or equal to twenty percent\n(20%) of the individual income tax rate in KRS 141.020 is\nimposed; and\nb. The local jurisdiction agrees to forgo the local wage assessment of\nat least tw enty percent (20%) of the individual income tax rate\nimposed by KRS 141.020 via credits against the local occupational\nlicense fee for the affected employees; or\n3. a. A local occupational license fee less than twenty percent (20%) of\nthe individual income tax rate in KRS 141.020 is imposed; and\nb. The local jurisdiction agrees to forgo the total amount of the local\noccupational license fee as the local wage assessment; or\n(b) Up to four (4) times the forgone local wage assessment rate if the project is\nlocated in a local jurisdiction where:\n1. a. A local occupational license fee  greater than or equal to twenty\npercent (20%) of the individual income tax rate in KRS 141.020 is\nimposed; and\nb. The local jurisdiction agrees to forgo an amount of the local\noccupational license fee that is less than twenty percent (20%) of\nthe individu al income tax rate imposed by KRS 141.020 as the\nlocal wage assessment; or\n2. a. A local occupational license fee less than twenty percent (20%) of\nthe individual income tax rate in KRS 141.020 is imposed; and\nb. The local jurisdiction agrees to forgo only  a portion of the total\namount of the local occupational license fee as the local wage\nassessment.\n(2) Each assessed employee shall be entitled to a credit against the Kentucky income\ntax required to be withheld under KRS 141.310 in the form of a simultane ous\nadjustment equal to the Commonwealth's assessment outlined in subsection (1) of\nthis section.\n(3) Each employee assessed under subsection (1) of this section also shall be entitled to\na credit against the local occupational license fee in the form of a  simultaneous\nadjustment of the local occupational license fee withholding equal to the local wage\nassessment outlined in subsection (1) of this section.\n(4) If an approved company elects to impose the assessment as a condition of\nemployment or the retenti on of employment, the approved company shall deduct\nthe assessment from each paycheck of each employee subject to the provisions of\nsubsections (2) and (3) of this section.\n(5) Any approved company collecting an assessment shall make its payroll books and\nrecords available to the authority at such reasonable times as the authority shall\nrequest and shall file with the authority the documentation respecting the\nassessment the authority may require.\n(6) Any assessment of the wages of the employees of an appro ved company shall\npermanently lapse upon expiration or termination of the agreement unless the\nagreement has been amended to extend the termination as a result of a supplemental\nproject.\n(7) By October 1 of each year, the Department of Revenue shall certify to the authority,\nin the form of an annual report, aggregate tax credits claimed on tax returns filed\nduring the taxable year ending June 30 of that year and wage assessment fees taken\nduring the prior calendar year by approved companies with respect to their jobs\nretention projects under this subchapter, and shall certify to the authority, within\none hundred eighty (180) days from the date an approved company has filed its\nstate tax return, when an approved company has taken tax credits equal to its tota l\ninducements.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=53845","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:55Z","sha256":"5018ad114c5172b0e5c89831bd78d2ab7c322ff61172bf0f0488396ec04869b4","source_id":"us-ky","stale":false,"prev":"us-ky/krs-154.25-030","next":"us-ky/krs-154.25-050"},"notice":"GroundRules: Original legal text. Not legal advice."}