{"data":{"id":"us-ky/krs-154.30-010","jurisdiction":"us-ky","citation":"KRS 154.30-010","heading":"Definitions for subchapter.          (Effective until January 1, 2027)","body":"As used in this subchapter:\n(1) \"Activation date\" means:\n(a) For all projects except those described in paragraph (b) of this subsection, the\ndate established any time with in a two (2) year period after the\ncommencement date. The Commonwealth may extend the two (2) year period\nto no more than four (4) years upon written application by the agency\nrequesting the extension; and\n(b) For signature projects approved under KRS 154. 30-050(3)(a), the date\nestablished any time within a ten (10) year period after the commencement\ndate.\nFor all projects established after July 14, 2018, the activation date is the date on\nwhich the time period for the pledge of incremental revenues shall commence. To\nimplement the activation date, the minimum capital investment must be met and the\nagency that is a party to the tax incentive agreement shall notify the office;\n(2) \"Agency\" means:\n(a) An urban renewal and community development agency establis hed under\nKRS Chapter 99;\n(b) A development authority established under KRS Chapter 99;\n(c) A nonprofit corporation;\n(d) A housing authority established under KRS Chapter 80;\n(e) An air board established under KRS 183.132 to 183.160;\n(f) A local industrial development authority established under KRS 154.50 -301\nto 154.50-346;\n(g) A riverport authority established under KRS 65.510 to 65.650; or\n(h) A designated department, division, or office of a city or county;\n(3) (a) \"Approved public infrastructure costs\" means costs associated with the\nacquisition, installation, construction, or reconstruction of public works,\npublic improvements, and public buildings, including planning and desi gn\ncosts associated with the development of the public amenities.\n(b) \"Approved public infrastructure costs\" includes but is not limited to costs\nincurred for the following:\n1. Land preparation, including demolition and clearance work;\n2. Buildings;\n3. Sewers and storm drainage;\n4. Curbs, sidewalks, promenades, and pedways;\n5. Roads;\n6. Street lighting;\n7. The provision of utilities;\n8. Environmental remediation;\n9. Floodwalls and floodgates;\n10. Public spaces or parks;\n11. Parking;\n12. Easements and rights-of-way;\n13. Transportation facilities;\n14. Public landings;\n15. Amenities, including fountains, benches, and sculptures; and\n16. Riverbank modifications and improvements;\n(4) \"Approved signature project costs\" means:\n(a) The acquisition of land for portio ns of the project that are for infrastructure;\nand\n(b) Costs associated with the acquisition, installation, development, construction,\nimprovement, or rec onstruction of infrastructure, including planning and\ndesign costs associated with the development of infrastructure, including but\nnot limited to parking structures, including portions of parking structures that\nserve as platforms to support development above;\nthat have been determined by the commission to represent a unique challenge in the\nfinancing of a project such that the project could not be developed without\nincentives intended by this chapter to foster economic development;\n(5) \"Authority\" means the Kentucky Economic Development Finance Authority\nestablished by KRS 154.20-010;\n(6) \"Capital investment\" means:\n(a) Obligations incurred for labor and to contractors, subcontractors, builders, and\nmaterialmen in connection with the acquisition, construc tion, installation,\nequipping, and rehabilitation of a project;\n(b) The cost of acquiring land or rights in land within the development area on the\nfootprint of the project, and any cost incident thereto, including recording\nfees;\n(c) The cost of contract bonds and of insurance of all kinds that may be required\nor necessary during the course of acquisition, construction, installation,\nequipping, and rehabilitation of a project which is not paid by the contractor\nor contractors or otherwise provided;\n(d) All costs of architectural and engineering services, including test borings,\nsurveys, estimates, plans, specifications, preliminary investigations,\nsupervision of construction, and the performance of all the duties required by\nor consequent upon the acquisiti on, construction, installation, equipping, and\nrehabilitation of a project;\n(e) All costs that are required to be paid under the terms of any contract for the\nacquisition, construction, installation, equipping, and rehabilitation of a\nproject; and\n(f) All other costs of a nature comparable to those described in this subsection\nthat occur after preliminary approval;\n(7) \"City\" means any city, consolidated local government, or urban -county\ngovernment;\n(8) \"Commencement date\" means the final approval date or t he date on which a tax\nincentive agreement is executed;\n(9) \"Commonwealth\" means the Commonwealth of Kentucky;\n(10) \"County\" means any county, consolidated local government, charter county, unified\nlocal government, or urban-county government;\n(11) \"CPI\" m eans the nonseasonally adjusted Consumer Price Index for all urban\nconsumers, all items, base year computed for 1982 to 1984 equals one hundred\n(100), published by the United States Department of Labor, Bureau of Labor\nStatistics;\n(12) \"Department\" means the Department of Revenue;\n(13) \"Development area\" means an area established under KRS 65.7049, 65.7051, and\n65.7053;\n(14) \"Economic development projects\" means projects which are approved for tax\ncredits under Subchapter 20, 22, 23, 24, 25, 26, 27, 28, 34,  or 48 of KRS Chapter\n154;\n(15) \"Financing costs\" means principal, interest, costs of issuance, debt service reserve\nrequirements, underwriting discount, costs of credit enhancement or liquidity\ninstruments, and other costs directly related to the issuance  of bonds or debt for\napproved public infrastructure costs or approved signature project costs for projects\napproved pursuant to KRS 154.30-050;\n(16) \"Footprint\" means the actual perimeter of a discrete, identified project within a\ndevelopment area. The footprint shall not include any portion of a development area\noutside the area for which actual capital investments are made and must be\ncontiguous;\n(17) \"Governing body\" means the body possessing legislative authority in a city or\ncounty;\n(18) \"Increment bo nds\" means bonds and notes issued for the purpose of paying the\ncosts of one (1) or more projects;\n(19) \"Incremental revenues\" means:\n(a) The amount of revenues received by a taxing district, as determined by\nsubtracting old revenues from new revenues in a  calendar year with respect to\na development area, or a project within a development area; or\n(b) The amount of revenues received by the Commonwealth as determined by\nsubtracting old revenues from new revenues in a calendar year with respect to\nthe footprint;\n(20) \"Local participation agreement\" means the agreement entered into under KRS\n65.7063;\n(21) \"Local tax revenues\" has the same meaning as in KRS 65.7045;\n(22) \"Modified new revenues for income tax\" means the amount of individual income\ntax included in state tax revenues that is:\n(a) The result of multiplying the portion of state tax revenues from individual\nincome taxes by the modifier;\n(b) Used for calculating state tax revenues in calendar years 2023 to 2026; and\n(c) For projects approved prior to January 1, 2023;\n(23) \"Modifier\" means the result of dividing the individual income tax rate of five\npercent (5%), in effect as of December 31, 2 022, by the individual income tax rate\nunder KRS 141.020 for the calendar year in which the new revenues for income tax\nare being computed;\n(24) \"New revenues\" means:\n(a) The amount of local tax revenues received by a taxing district with respect to\na development area in any calendar year beginning with the year in which the\nactivation date occurred; and\n(b) The amount of state tax revenues received by the Commonwealth with respect\nto the footprint in any calendar year beginning with the year in which the\nactivation date occurred.\nFor projects approved prior to January 1, 2023, any state tax revenues received by\nthe Commonwealth from individual income tax shall be computed using modified\nnew revenues for income tax;\n(25) \"Old revenues\" means:\n(a) The amount of local tax revenues received by a taxing district with respect to\na development area as of December 31 of the year of preliminary approval; or\n(b) 1. The amount of state tax revenues received by the Commonwealth within\nthe footprint as of December 31 of  the year of preliminary approval. If\nthe authority determines that the amount of state tax revenues received\nas of December 31 of the last calendar year prior to the commencement\nof preliminary approval does not represent a true and accurate depiction\nof revenues, the authority may consider revenues for a period of no\nlonger than three (3) calendar years prior to the year of preliminary\napproval, so as to determine a fair representation of state tax revenues.\nThe amount determined by the authority shall be  specified in the tax\nincentive agreement. If state tax revenues were derived from the\nfootprint prior to the year of preliminary approval, old revenues shall\nincrease each calendar year by:\na. The percentage increase, if any, of the CPI or a comparable in dex;\nor\nb. An alternative percentage increase that is determined to be\nappropriate by the authority.\nThe method for increasing old revenues shall be set forth in the tax\nincentive agreement.\n2. If state revenues were derived from the footprint prior to th e year of\npreliminary approval, the calculation of incremental revenues shall be\nbased on the value of old revenues as increased using the method\nprescribed in subparagraph 1. of this paragraph to reflect the same\ncalendar year as is used in the determination of new revenues;\n(26) \"Outstanding\" means increment bonds that have been issued, delivered, and paid\nfor by the purchaser, except any of the following:\n(a) Increment bonds canceled upon surrender, exchange, or transfer, or upon\npayment or redemption;\n(b) Increment bonds in replacement of which or in exchange for which other\nincrement bonds have been issued; or\n(c) Increment bonds for the payment, redemption, or purchase for cancellation\nprior to maturity, of which sufficient moneys or investments, in ac cordance\nwith the ordinance or other proceedings or any applicable law, by mandatory\nsinking fund redemption requirements, or otherwise, have been deposited, and\ncredited in a sinking fund or with a trustee or paying or escrow agent, whether\nat or prior to their maturity or redemption, and, in the case of increment bonds\nto be redeemed prior to their stated maturity, notice of redemption has been\ngiven or satisfactory arrangements have been made for giving notice of that\nredemption, or waiver of that notice  by or on behalf of the affected bond\nholders has been filed with the issuer or its agent;\n(27) \"Preliminary approval\" means the action taken by the authority preliminarily\napproving an eligible project for incentives under this subchapter;\n(28) \"Project\" means any property, asset, or improvement located in a development area\nand certified by the governing body as:\n(a) Being for a public purpose; and\n(b) Being for the development of facilities for residential, commercial, industrial,\npublic, recreational, o r other uses, or for open space, including the\ndevelopment, rehabilitation, renovation, installation, improvement,\nenlargement, or extension of real estate and buildings; and\n(c) Contributing to economic development or tourism; and\n(d) Meeting the additional requirements established by KRS 154.30 -040, 154.30-\n050, or 154.30-060;\n(29) \"Signature project\" means a project approved under KRS 154.30-050;\n(30) \"State real property ad valorem tax\" means real property ad valorem taxes levied\nunder KRS 132.020(1)(a);\n(31) \"State tax revenues\" means revenues received by the Commonwealth from one (1)\nor more of the following sources:\n(a) State real property ad valorem taxes;\n(b) Individual income taxes levied under KRS 141.020, other than individual\nincome taxes that have already been pledged to support an economic\ndevelopment project within the development area;\n(c) Corporation income taxes levied under KRS 141.040, other than corporation\nincome taxes that have already been pledged to support an economic\ndevelopment project within the development area;\n(d) Limited liability entity taxes levied under KRS 141.0401, other than limited\nliability entity taxes that have alr eady been pledged to support an economic\ndevelopment project within the development area; and\n(e) Sales taxes levied under KRS 139.200, excluding sales taxes already pledged\nfor:\n1. Approved tourism attraction projects, as defined in KRS 148.851, within\nthe development area; and\n2. Projects which are approved for sales tax refunds under Subchapter 20\nof KRS Chapter 154 within the development area;\n(32) \"Tax incentive agreement\" means an agreement entered into in accordance with\nKRS 154.30-070; and\n(33) \"Termination date\" means:\n(a) For a tax incentive agreement satisfying the requirements of KRS 154.30 -040\nor 154.30 -060, a date established by the tax incentive agreement that is no\nmore than twenty (20) years from the activation date. However, the\ntermination date for a tax incentive agreement shall in no event be more than\nforty (40) years from the establishment date of the development area to which\nthe tax incentive agreement relates; and\n(b) For a project grant agreement satisfying the requirements of KRS 1 54.30-050,\na date established by the tax incentive agreement that is no more than thirty\n(30) years from the activation date. However, the termination date for a tax\nincentive agreement shall in no event be more than forty (40) years from the\nestablishment date of the development area to which the tax incentive\nagreement relates.\nEffective: June 27, 2025","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=56346","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:55Z","sha256":"81f12a8dd983fc5a3bc8864fd22a18c12ea0ab3cb88f94615c4c2d4294fd98c7","source_id":"us-ky","stale":false,"prev":"us-ky/krs-154.29-060","next":"us-ky/krs-154.30-020"},"notice":"GroundRules: Original legal text. Not legal advice."}