{"data":{"id":"us-ky/krs-154.31-030","jurisdiction":"us-ky","citation":"KRS 154.31-030","heading":"Application, approval, and monitoring process for sales and use tax","body":"incentive -- Standards and criteria for approval -- Execution of agreement --\nAnnual report.\n(1) The application, approval, and monitoring process under this subchapter shal l be as\nfollows:\n(a) An eligible company with a proposed economic development project may\nsubmit an application to the authority. The application shall include the\ninformation required by subsection (3) of this section;\n(b) Upon review of the application a nd any additional information submitted, the\nauthority may, by resolution, approve an economic development project and\nauthorize the negotiation and execution of an agreement pursuant to\nsubsection (4) of this section. Approval granted pursuant to this sub section\nshall apply to a specific economic development project at a specific location\nwithin the Commonwealth;\n(c) Upon approval, the authority shall notify the department that an approved\ncompany is eligible for a sales and use tax incentive under this su bchapter and\nshall provide the department with the information necessary to monitor the\nuse of incentives by the approved company. The authority shall notify the\ndepartment if the agreement is extended or amended, or if the incentives are\ntransferred, and shall provide the department with the information necessary\nto update its records; and\n(d) The approved company shall be eligible to receive the sales and use tax\nincentives authorized by the agreement upon the earlier of the completion of\nthe economic dev elopment project or expiration of the project term. The\napproved company shall apply to the department for the sales and use tax\nincentives as provided in KRS 139.535, and shall, during the project term,\nsubmit all information required by the department as  provided in KRS\n139.535.\n(2) The authority may establish standards for the review of applications and the\napproval of eligible companies through the promulgation of administrative\nregulations in accordance with KRS Chapter 13A. In reviewing applications a nd\nestablishing standards, the authority shall consider the creditworthiness of the\neligible company, employment opportunities for Kentucky residents, wages to be\npaid, whether the eligible company is participating in other incentive programs\npursuant to KRS Chapter 154 for the project, the likelihood that the project will be\nan economic success, and any other factors the authority determines to be relevant.\n(3) The application submitted by an eligible company shall include but not be limited to\nthe following:\n(a) A description of the proposed economic development project;\n(b) The anticipated minimum investment in the proposed economic development\nproject;\n(c) An estimate of the approved recovery amount that the company will seek;\n(d) A timeline for completion of the proposed economic development project;\n(e) Supporting documentation, as requested by the authority;\n(f) Payment of any applicable application fee required by the authority; and\n(g) Any other information requested by the authority.\n(4) (a) Upon approval of an eligible company, the authority may enter into an\nagreement with the approved company. The terms of the agreement shall be\ndetermined by negotiations between the authority and the approved company,\nand shall include but not be limited to the following provisions:\n1. The project term;\n2. A description of the economic development project;\n3. The total approved recovery amount in each category for which the\napproved company is eligible;\n4. That the approved company shall maintain all record s and\ndocumentation relating to eligible expenditures and the Kentucky sales\nand use tax paid, and shall provide those records and documentation to\nthe authority or the department upon request;\n5. That the approved company shall execute information -sharing\nagreements prescribed by the department with contractors, vendors, and\nother related parties to verify the costs of and payment of sales and use\ntax on the tangible personal property eligible for the sales and use tax\nincentive under this subchapter;\n6. That the sales and use tax incentives shall not be assignable or\ntransferable without written notice to the authority and approval of the\nauthority; and\n7. Any other provisions not inconsistent with this subchapter.\n(b) The project term established in the agreement may be extended by approval of\nthe authority for good cause shown; however, the term shall not be extended\nbeyond seven (7) years from the date of approval.\n(c) An approved company may transfer or assign its designation as an approved\ncompany upon prior notification to the authority and approval of the authority\nin a manner prescribed by the authority.\n(5) The contents of a company's filings under this subchapter shall be subject to the\nKentucky Open Records Act, KRS 61.870 to 61.884.\n(6) By November 1 of each year, the authority shall prepare an annual report and make\nit available on the Cabinet for Economic Development Web site as required in KRS\n154.12-2035.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=48356","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:56Z","sha256":"36faab70f70488623881a18cd3377687a3a7bd51324468d417ebfbea8e862f63","source_id":"us-ky","stale":false,"prev":"us-ky/krs-154.31-020","next":"us-ky/krs-154.310"},"notice":"GroundRules: Original legal text. Not legal advice."}