{"data":{"id":"us-ky/krs-154.31-010","jurisdiction":"us-ky","citation":"KRS 154.31-010","heading":"Definitions for subchapter.","body":"As used in this subchapter:\n(1) \"Agreement\" means an agreement entered into pursuant to KRS 154.31 -030\nbetween the authority and an approved company;\n(2) \"Alternative fuel production\" has the same meaning as in KRS 154.32-010;\n(3) \"Approved company\" means an eligible company that has rec eived approval from\nthe authority for a sales and use tax incentive under this subchapter;\n(4) \"Approved recovery amount\" means the maximum sales and use tax incentive\nrecoverable by an approved company as established in the agreement;\n(5) \"Authority\" means the Kentucky Economic Development Finance Authority;\n(6) \"Carbon dioxide or hydrogen transmission pipeline\" has the same meaning as in\nKRS 154.32-010;\n(7) \"Coal severing and processing\" means activities resulting in the eligible company\nbeing subject to the tax imposed by KRS Chapter 143;\n(8) \"Department\" means the Department of Revenue;\n(9) \"Economic development project\" means:\n(a) 1. The acquisition or construction of a new facility; or\n2. The expansion or rehabilitation of an existing facility; or\n(b) The installation and equipping of a facility;\nby an eligible company at a specific site in the Commonwealth to be used in an\nactivity conducted by the approved company;\n(10) \"Electronic proce ssing\" means the use of technology having electronic, digital,\nmagnetic, wireless, optical, electromagnetic, or similar capabilities, now in\nexistence or later developed to perform a service or technology activity;\n(11) (a) \"Eligible company\" means any cor poration, limited liability company,\npartnership, limited partnership, sole proprietorship, business trust, or other\nlegal entity with a proposed economic development project that is primarily\nengaged in or planning to be engaged in one (1) or more of the following\nactivities within the Commonwealth:\n1. Manufacturing;\n2. Nonretail service or technology activities;\n3. Agribusiness;\n4. Headquarters operations;\n5. Alternative fuel, gasification, energy -efficient alternative fuel or\nrenewable energy production;\n6. Carbon dioxide or hydrogen transmission pipelines;\n7. Coal severing and processing;\n8. Hospital operations; or\n9. In operating or developing a tourism attraction.\n(b) \"Eligible company\" does not include any company whose primary activity to\nbe conducted within the Commonwealth is forestry, fishing, the provision of\nutilities, construction, wholesale trade, retail trade, real estate, rental and\nleasing, educational services, food services, or public administration services;\n(12) \"Eligible expenses\" means the amount expended for:\n(a) Building and construction materials permanently incorporated as an\nimprovement to real property as part of an economic development project; or\n(b) Equipment used for research and development or electronic processing at an\neconomic development project;\nif the Kentucky sales and use tax imposed by KRS Chapter 139 is paid on the\npurchase of the materials or equipment at the time of purchase;\n(13) \"Energy-efficient alternative fuel production\" has the same meaning as in KRS\n154.32-010;\n(14) (a) \"Equipment\" means tangible personal property which is subject to\ndepreciation under Sections 167 and 168 of the Internal Revenue Code,\nincluding assets which are expensed under Section 179 of the Internal\nRevenue Code, and that is used in the operation of a business.\n(b) \"Equipment\" does not include any tangible personal property used to\nmaintain, restore, mend, or repair machinery or equipment, consumable\noperating supplies, office supplies, or maintenance supplies;\n(15) \"Gasification process\" has the same meaning as in KRS 154.32-010;\n(16) \"Headquarters\" means the principal office where the principal executives of the\nentity are located and from which other personnel, branches, affiliates, offices, or\nentities are controlled;\n(17) \"Hospital\" has the same meaning as in KRS 154.32-010;\n(18) \"Manufacturing\" has the same meaning as in KRS 154.32-010;\n(19) \"Nonretail service and technology\" has the same meaning as in KRS 154.32-010;\n(20) \"Project term\" means the time for which an agreement shall be in effect. The project\nterm shall be established in the agreement and shall not exceed seven (7) years;\n(21) \"Renewable energy production\" has the same meaning as in KRS 154.32-010;\n(22) (a) \"Research and development\" means experimental or laboratory activity that\nhas as its ultimate goal the development  of new products, the improvement of\nexisting products, the development of new uses for existing products, or the\ndevelopment or improvement of methods for producing products.\n(b) \"Research and development\" does not include testing or inspection of\nmaterials or products for quality control purposes, efficiency surveys,\nmanagement studies, consumer surveys or other market research, advertising\nor promotional activities, or research in connection with literary, historical, or\nsimilar projects; and\n(23) \"Tourism attraction\" has the same meaning as tourism attraction project in KRS\n148.851.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=53846","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:55Z","sha256":"538b4396f64067dd8d542589e19db681deb78447ac431978bb9dc231fedb4972","source_id":"us-ky","stale":false,"prev":"us-ky/krs-154.30-090","next":"us-ky/krs-154.31-020"},"notice":"GroundRules: Original legal text. Not legal advice."}