{"data":{"id":"us-ky/krs-154.27-090","jurisdiction":"us-ky","citation":"KRS 154.27-090","heading":"Advance  disbursement of incentives -- Computation of maximum","body":"disbursement  amount -- Schedule for disbursement -- Repayment.\n(1) An  approved company  may  be eligible for the advance disbursement of a\nportion of the post-construction period incentives for which it has been\napproved. The amount of the advance disbursement shall be based on the\nemployment  of Kentucky residents during the construction of the facility, shall\nbe negotiated with the authority as part of the tax incentive agreement, and\nshall not exceed the limitations established by this section.\n(2) The  authority shall compute  the maximum  amount  of the advance\ndisbursement employment incentive as follows:\n(a) The base amount shall equal the total capital investment specified in the\ntax incentive agreement  multiplied by the labor intensity factor as\ndetermined in paragraph (c) of this subsection;\n(b) The base amount shall then be multiplied by the Kentucky resident factor\nas determined in paragraph (d) of this subsection. The resulting amount\nshall be the maximum  advance disbursement employment incentive that\nthe authority may approve;\n(c) The labor intensity factor shall be:\n1. Twenty-five percent (25%), if the estimated labor component for the\neligible project is greater than thirty percent (30%) of the total capital\ninvestment;\n2. Twenty  percent (20%), if the estimated labor component  for the\neligible project is greater than twenty-five percent (25%) but less\nthan or equal to thirty percent (30%) of the total capital investment;\nor\n3. Fifteen percent (15%), if the estimated labor component  for the\neligible project is equal to or less than twenty-five percent (25%) of\nthe total capital investment; and\n(d) The  Kentucky resident factor shall be four percent (4%) multiplied by a\nfraction, the numerator of which shall be the estimated total gross wages\nthat will be  paid to Kentucky residents who  are working on  the\nconstruction, retrofit, or upgrade  of the eligible project, and  the\ndenominator of which shall be the estimated total gross wages that will be\npaid to all workers working on the construction, retrofit, or upgrade of the\neligible project.\n(3) The tax incentive agreement shall include a schedule for the disbursement of\nthe  advance  disbursement employment  incentive during the construction\nperiod. In negotiating the disbursement schedule, the authority shall consider\nthe  possible increased risk to the Commonwealth  associated with the\ndisbursement of funds prior to construction completion.\n(4) (a) The approved company shall repay the advance disbursement through a\nreduction in the post-construction period incentive amounts  it would\notherwise receive. The amount by which the post-construction period\nincentive amounts are reduced shall be applied as a credit against the\namount owed by the approved company.\n(b) The  amount of the annual reduction, the incentives the reduction shall\napply  to, interest due, the time period over which  the advance\ndisbursement amount shall be recouped, and alternate payment methods\nif incentives are not sufficient to repay the advance disbursement shall be\nnegotiated between the authority and the approved company  as part of\nthe tax incentive agreement.\n(c) The  repayment schedule included in the tax incentive agreement shall\nrequire uniform incremental payments, to the extent possible, and shall\ncontinue until the entire advance disbursement amount has been repaid\nby the approved company.\n(d) The  tax incentive agreement shall include a provision addressing an\nalternate method for payment if incentives are not sufficient to repay the\nadvance disbursement.\n(e) The  total post-construction incentive payments for which an approved\ncompany  is eligible shall be tracked by the department. That portion of the\nincentive amounts identified in the tax incentive agreement as being\ndevoted to the repayment of the advance disbursement amount shall be\ncredited against the balance due from the approved company  and shall\nnot be paid to or retained by the approved company.\n(f) The  department shall forward the amounts credited to the repayment of\nthe  advance  disbursement amount  to the Cabinet for Economic\nDevelopment,  Department of Financial Incentives for deposit in the\nEnergy Projects Economic Development Bond Pool.\n(g) During the period for which any portion of the post-construction incentive\npayments  are being credited toward the advance disbursement amount,\nthe approved company  shall, at the direction of the authority or the\ndepartment, file all required requests for incentives, submit all required\nremittances, make  all required tax payments, and  provide to the\ndepartment and the authority any information that would normally be\nrequired for the approved company to receive the incentives.\n(5) The authority may, for purposes of administering the provisions of this section,\nsolicit information or consultation from one (1) or more of the following sources:\n(a) The Office of Energy Policy;\n(b) The Center for Applied Energy Research;\n(c) The Department of Workforce Development; or\n(d) Any public postsecondary education institution within the Commonwealth.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=52367","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:55Z","sha256":"1c054f54ab562cdffe0cd80433c3c6c508bb9a0de369c298c260a38498ee43ae","source_id":"us-ky","stale":false,"prev":"us-ky/krs-154.27-080","next":"us-ky/krs-154.27-095"},"notice":"GroundRules: Original legal text. Not legal advice."}