{"data":{"id":"us-ky/krs-154.28-010","jurisdiction":"us-ky","citation":"KRS 154.28-010","heading":"Definitions for KRS  154.28-010 to 154.28-100.","body":"As  used in KRS  154.28-010 to 154.28-100, unless the context clearly indicates\notherwise:\n(1) \"Activation date\" means  a date selected by an approved company  in the\nagreement  at any time within the two (2) year period after the date of final\napproval of the agreement by the authority;\n(2) \"Affiliate\" has the same meaning as in KRS 154.22-010;\n(3) \"Agreement\" means the tax incentive agreement entered into, pursuant to KRS\n154.28-090, between the authority and an approved company  with respect to\nan economic development project;\n(4) \"Agribusiness\" means  any activity involving the processing of raw agricultural\nproducts, including timber, or the providing of value-added functions with\nregard to raw agricultural products;\n(5) \"Approved company\" means  any eligible company, approved by the authority\npursuant to KRS 154.28-080, requiring an economic development project;\n(6) \"Approved costs\" means:\n(a) Obligations incurred for labor and to vendors, contractors, subcontractors,\nbuilders, suppliers, deliverymen, and materialmen in connection with the\nacquisition, construction, rehabilitation, and installation of an economic\ndevelopment project;\n(b) The  cost of contract bonds and of insurance of all kinds that may  be\nrequired or necessary during the course of acquisition, construction,\nrehabilitation, and installation of an economic project which is not paid by\nthe vendor, supplier, deliverymen, contractors, or otherwise else provided;\n(c) All costs of architectural and engineering services, including estimates,\nplans and specifications, preliminary investigations, and supervision of\nconstruction, rehabilitation, and  installation, as  well as  for the\nperformance  of all the duties required by or consequent upon  the\nacquisition, construction, rehabilitation, and installation of an economic\ndevelopment project;\n(d) All costs which shall be required to be paid under the terms of any\ncontract for the acquisition, construction, rehabilitation, and installation of\nan economic development project;\n(e) All costs which shall be required for the installation of utilities such as\nwater, sewer, sewer treatment, gas, electricity, communications, railroads,\nand similar facilities, and including offsite construction of the facilities paid\nfor by the approved company; and\n(f) All other costs comparable to those described above;\n(7) \"Assessment\" means the job development assessment fee authorized by KRS\n154.28-010 to 154.28-100;\n(8) \"Authority\" means  the Kentucky Economic  Development Finance Authority\ncreated by KRS 154.20-010;\n(9) \"Average hourly wage\" means  the wage and employment data published by\nthe Department of Workforce Development in the Education and Labor Cabinet\ncollectively translated into wages per hour based on a two thousand eighty\n(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(10) \"Commonwealth\"  means the Commonwealth  of Kentucky;\n(11)(a) \"Economic development project\" or \"project\" means and includes:\n1. The  acquisition of ownership in any real estate by the approved\nmanufacturing or agribusiness company or its affiliate;\n2. The  present  ownership  of  real estate by  the  approved\nmanufacturing or agribusiness company or its affiliate;\n3. The  acquisition or present ownership of improvements or facilities,\nas described in paragraph (b) of this subsection, on land which is\npossessed  or is to be  possessed  by the approved company\npursuant to a ground lease having a term of sixty (60) years or\nmore; and\n4. The  legal possession of facilities by an approved company  or its\naffiliate pursuant to a lease having a term equal to or greater than\nten (10) years with a third-party entity, negotiated at arm's length, if\nthe facility will be used by the approved company  to conduct the\napproved activity for which the inducement has been granted. An\neconomic  development project qualifying under this subparagraph\nshall only be eligible for credits against equipment and costs related\nto installation of equipment and for purposes of the tax credits\nprovided under the provisions of KRS  154.28-010 to 154.28-090\nonly to the extent of twenty thousand dollars ($20,000) per job\ncreated by and maintained at the economic development project.\nNotwithstanding KRS  154.28-090, an economic development project\nqualifying under this subparagraph shall be eligible only for the\naggregate assessments pursuant to KRS  154.28-110 withheld by\nthe approved company each year and shall not be eligible for credit\nagainst Kentucky income tax and limited liability entity tax.\n(b) For purposes of paragraph (a)1. and 2. of this subsection, ownership of\nreal estate shall only include fee ownership of real estate and possession\nof real estate pursuant to a capital lease as determined in accordance\nwith Statement of Financial Accounting Standards No. 13, Accounting for\nLeases, issued by the Financial Accounting Standards Board, November\n1976. With respect to paragraph (a)1., 2., and 3. of this subsection, the\nconstruction, installation, equipping, and rehabilitating of improvements,\nincluding fixtures and equipment directly involved in the manufacturing\nprocess, and facilities necessary or desirable for improvement of the real\nestate shall include: surveys, site tests, and inspections; subsurface site\nwork and excavation; removal of structures, roadways, cemeteries, and\nother site obstructions; filling, grading, provision of drainage, and storm\nwater retention; installation of utilities such as water, sewer, sewage\ntreatment, gas, electricity, communications, and similar facilities; offsite\nconstruction of utility extensions to the boundaries of the real estate; and\nthe acquisition, installation, equipping, and rehabilitation of manufacturing\nfacilities or agribusiness operations on the real estate for the use of the\napproved  company  or its affiliates for manufacturing or agribusiness\noperational purposes. Pursuant to paragraph (a)3. and  4. of this\nsubsection and this paragraph, an economic development project shall\nnot include lease payments  made  pursuant to a ground lease for\npurposes  of the tax credits provided under the provisions of KRS\n154.28-010  to 154.28-100. An  economic  development project shall\ninclude the equipping of a facility with equipment but, for purposes of the\ntax  credits provided under the provisions of KRS  154.28-010 to\n154.28-090, only to the extent of twenty thousand dollars ($20,000) per\njob created by and maintained at the economic development project;\n(12) \"Eligible company\"  means  any  corporation, limited liability company,\npartnership, limited partnership, sole proprietorship, trust, or any other entity\nengaged in manufacturing or agribusiness operations;\n(13) \"Employee benefits\" means  nonmandated  costs paid by an eligible company\nfor its full-time employees for health insurance, life insurance, dental insurance,\nvision insurance, defined benefits, 401(k), or similar plans;\n(14) \"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 income tax\nimposed by KRS 141.020;\n(15) \"Inducement\" means the assessment or the Kentucky income tax credit as set\nforth in KRS 154.28-090;\n(16) \"Manufacturing\" means  any activity involving the manufacturing, processing,\nassembling, or production of any property, including the processing resulting in\na change in the conditions of the property, and any activity functionally related\nto it, together with storage, warehousing, distribution, and  related office\nfacilities; however, \"manufacturing\" shall not include mining, coal or mineral\nprocessing, or extraction of minerals;\n(17) \"State agency\" shall have the meaning assigned to the term in KRS 56.440(8);\n(18) \"Kentucky gross profits\" means  \"Kentucky gross profits\" as defined in KRS\n141.0401; and\n(19) \"Kentucky gross receipts\" means \"Kentucky gross receipts\" as defined in KRS\n141.0401.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=52368","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:55Z","sha256":"0fd8f999ec020b186bead65f381db57c6db3e098dca158cfac8c22b77da3f88c","source_id":"us-ky","stale":false,"prev":"us-ky/krs-154.270","next":"us-ky/krs-154.28-015"},"notice":"GroundRules: Original legal text. Not legal advice."}