{"data":{"id":"us-ky/krs-154.30-070","jurisdiction":"us-ky","citation":"KRS 154.30-070","heading":"Terms and conditions of tax incentive agreements to be negotiated","body":"between authority and agency -- Provisions of agreement -- Pledge of\nincremental revenues superior to other pledges of revenues -- Renewal and\ndiscontinuance of agreement.\n(1) The terms and conditions of the tax incentive agreement shall be negotiated\nbetween the authority and the agency. The tax incentive agreement shall include but\nnot be limited to the following provisions:\n(a) Identification of the parties to the tax incent ive agreement and the duties and\nresponsibilities of each party to the tax incentive agreement;\n(b) The specific identification of the state tax revenues, by type of tax, to be\nreleased or pledged by the Commonwealth for the project;\n(c) 1. A detailed summ ary of old revenues collected and projected new\nrevenues for the Commonwealth on an annual basis for the term of the\ntax incentive agreement; and\n2. The maximum amount of incremental revenue to be released by the\nCommonwealth and the maximum number of year s the pledge of\nincremental revenues will be effective;\n(d) A detailed description of each project that is the subject of the tax incentive\nagreement, including an estimate of the costs of construction or acquisition\nand development;\n(e) Identification of the project footprint from which the state incremental\nrevenues pledged by the Commonwealth are to be derived;\n(f) The approved public infrastructure costs and, when applicable, approved\nsignature project costs, approved financing costs, and approved costs  relating\nto land preparation, demolition, and clearance that may be recovered;\n(g) The minimum capital investment required, the date by which the minimum\ncapital investment is expected to occur, and a provision stating that failure of\nthe approved company to meet the minimum capital investment established by\nKRS 154.30-040, 154.30-050, or 154.30 -060 on or before the activation date\nshall result in cancellation of the tax incentive agreement;\n(h) Terms of default and remedies, provided that no remedy shall permit the\nwithholding by any party to the tax incentive agreement of any incremental\nrevenues if increment bonds are outstanding that are secured by a pledge of\nthose incremental revenues;\n(i) The termination date;\n(j) A requirement that the agency, city, or county annually certify to the authority\nthe use of incremental revenues for the payment of approved project costs\nwithin the development area;\n(k) A requirement that the agency shall utilize the portion of incremental revenues\npledged pursuant to a tax incentive agreement that exceeds, in a given year,\nthe amounts needed to:\n1. Pay the current financing costs; and\n2. Maintain a fully funded reserve;\nto provide for the retirement or defeasance of all or a portion of the remaining\nfinancing costs related to approved public infrastructure costs, and approved\nsignature project costs secured by the incremental revenues;\n(l) A requirement that the agency, city, or county make periodic accountings to\nthe authority;\n(m) A re quirement that the authority monitor and verify approved public\ninfrastructure costs, financing costs and approved signature project costs and\nminimum capital investment; and\n(n) For a signature project, the eligible refund amount or percentage for the sal es\ntax as permitted under KRS 139.515, and as determined by the authority\npursuant to KRS 65.7075(6); and\n(o) Any other provisions not inconsistent with this subchapter deemed necessary\nor appropriate by the parties to the tax incentive agreement.\n(2) Any pledge of incremental revenues in a tax incentive agreement shall be superior\nto any other pledge of revenues for any other purpose and shall, from the activation\ndate to the termination date, supersede any statute or ordinance regarding the\napplication or  use of incremental revenues. An ordinance in conflict with a tax\nincentive agreement shall not be adopted while any increment bonds secured by that\npledge remain outstanding. Ordinances pledging increments on a subordinate basis\nto any existing pledges may be adopted.\n(3) Any tax incentive agreement shall be made on the basis of automatic year -to-year\nrenewals, with the option to discontinue upon sixty (60) days' notice before the end\nof any annual termination date of the tax incentive agreement.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=48352","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:55Z","sha256":"928cc11ae2b55603dc4a817cb1c8acb20add63ee3b3f00324b390995ff6f5fb4","source_id":"us-ky","stale":false,"prev":"us-ky/krs-154.30-060","next":"us-ky/krs-154.30-080"},"notice":"GroundRules: Original legal text. Not legal advice."}