{"data":{"id":"us-ky/krs-154.27-080","jurisdiction":"us-ky","citation":"KRS 154.27-080","heading":"Income and limited liability entity tax incentives -- Assessment on","body":"employees' wages.\nAn approved company may be eligible for income tax-related incentives as follows:\n(1) A credit of up to one hundred percent (100%) of the Kentucky income t ax imposed\nunder KRS 141.040 or 141.020, and the limited liability entity tax imposed under\nKRS 141.0401 that would otherwise be owed by the approved company to the\nCommonwealth for the approved company's tax year, on the income, Kentucky\ngross profits, or  Kentucky gross receipts of the approved company generated by or\narising from the eligible project, with the ordering of credits as provided in KRS\n141.0205.\n(a) The credit allowed the approved company shall be applied against both the\nincome tax imposed b y KRS 141.020 or 141.040, and the limited liability\nentity tax imposed by KRS 141.0401, with credit ordering as provided in KRS\n141.0205, for the tax year for which the tax return of the approved company is\nfiled.\n(b) The approved company shall not be requ ired to pay estimated tax payments\nunder KRS 141.044 on the Kentucky taxable income, Kentucky gross receipts,\nor Kentucky gross profits generated by or arising from the eligible project.\n(c) The credit provided by this subsection shall be determined as provided in KRS\n141.421.\n(2) The approved company or, with the authority's consent, an affiliate of the approved\ncompany may require that each employee subject to the state income tax imposed\nby KRS 141.020, as a condition of employment, agree to pay an assessment of up to\nfour percent (4%) of his or her gross wages. The assessment shall be uniform\nagainst all employees against whom it is assessed and shall be imposed at a\npercentage rate that is negotiated as part of the tax incentive agreement.\n(a) 1. The assessment may be imposed against each employee:\na. Whose job was created as a result of the eligible project;\nb. Who is employed by the approved company to work at the facility;\nand\nc. Who is on the payroll of the approved company or, with the\nauthority's consent, is on the payroll of an affiliate of the approved\ncompany.\n2. Construction workers, employees of the approved company directly\nemployed in the construction, retrofit, or upgrade of the eligible facility,\ncontract workers, and leased workers shall n ot be considered employees\nof the approved company for purposes of the assessment permitted by\nthis subsection.\n(b) Each employee so assessed shall be entitled to credits against Kentucky\nincome tax equal to the assessment withheld from wages during the calendar\nyear as provided by KRS 141.310 and 141.421.\n(c) An approved company that elects to impose the assessment as a condition of\nemployment is authorized to deduct the assessment from each paycheck of\neach employee.\n(d) The approved company shall provide to the authority the information\nnecessary to monitor the tax incentive agreement and the authorization for the\nauthority to share the information with the department as necessary for\npurposes of enforcing the terms of the tax incentive agreement.\n(e) Any assessment imposed pursuant to this subsection shall permanently expire\nupon termination or expiration of the tax incentive agreement.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=49212","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:55Z","sha256":"b5bf6f2a914591f4c57c93080c5a0cc9a26bf9f8e38b85b1520bea8b74e07422","source_id":"us-ky","stale":false,"prev":"us-ky/krs-154.27-070","next":"us-ky/krs-154.27-090"},"notice":"GroundRules: Original legal text. Not legal advice."}