{"data":{"id":"us-ky/krs-154.32-020","jurisdiction":"us-ky","citation":"KRS 154.32-020","heading":"Incentives to induce location of economic development projects in the","body":"Commonwealth -- Purposes -- Requirements -- Summary of incentives\navailable -- Legislative findings.\n(1) The purposes of this subchapter are:\n(a) To provide incentives for eligible companies and to encourage the location or\nexpansion of manufacturing facilities, agribusiness operations, nonretail\nservice or technology facilities, headquarters operations, alternative fuel\nproduction facilities, gasification production faci lities, energy -efficient\nalternative fuel production facilities, renewable energy production facilities,\ncarbon dioxide or hydrogen transmission pipelines, coal severing and\nprocessing, and hospital operations in the Commonwealth to advance the\npublic purposes of:\n1. Creation of new jobs that, but for the incentives offered by the authority,\nwould not exist within the Commonwealth;\n2. Creation of new sources of tax revenues for the support of public\nservices provided by the Commonwealth;\n3. Improvement in t he quality of life for Kentucky citizens through the\ncreation of sustainable jobs with higher salaries; and\n4. Providing an economic stimulus to bolster in -state production of vital\nmedications and personal protective equipment; and\n(b) To provide balanced incentives for companies that locate in heritage counties\nin recognition of the depressed economic conditions in those counties and the\nincreased need for the growth and development caused by the depressed\neconomic conditions.\n(2) To qualify for the incentives provided by subsection (3) of this section, an approved\ncompany shall:\n(a) Incur eligible costs of at least one hundred thousand dollars ($100,000);\n(b) Create at least ten (10) new full -time jobs and maintain an annual average\nnumber of at least ten (10) new full-time jobs; and\n(c) 1. Pay at least ninety percent (90%) of all new full -time employees whose\njobs were created as a result of the economic devel opment project a\nminimum wage of at least two hundred percent (200%) of the federal\nminimum wage in heritage counties, and three hundred percent (300%)\nof the federal minimum wage in any other counties throughout the term\nof the economic development project; and\n2. Provide employee benefits for all new full -time jobs equal to at least\nfifteen percent (15%) of the minimum wage requirement established by\nsubparagraph 1. of this paragraph. If the eligible company does not\nprovide employee benefits equal to at least fifteen percent (15%) of the\nminimum wage requirement established by subparagraph 1. of this\nparagraph, the eligible company may still qualify for incentives if it\nprovides the full -time employees hired as a result of the economic\ndevelopment project total hourly compensation equal to or greater than\none hundred fifteen percent (115%) of the minimum wage requirement\nestablished in subparagraph 1. of this paragraph through increased\nhourly wages combined with employee benefits; or\n(d) Produce vital med ications, personal protective equipment, or equipment\nnecessary to produce personal protective equipment.\n(3) (a) The incentives available under this subchapter are as follows:\n1. Tax credits of up to one hundred percent (100%) of the Kentucky\nincome tax i mposed under KRS 141.020 or 141.040 and the limited\nliability entity tax imposed under KRS 141.0401 on the income,\nKentucky gross profits, or Kentucky gross receipts of the approved\ncompany generated by or arising from the economic development\nproject, as set forth in KRS 141.415 and 154.32-070;\n2. Authorization for the approved company to impose a wage assessment\nagainst the gross wages of each new employee subject to the Kentucky\nincome tax as provided in KRS 154.32-090; and\n3. An approved company receivi ng preliminary approval after July 1,\n2026, may receive, in addition to the inducements provided under\nsubparagraphs 1. and 2. of this paragraph, an income tax credit as\nprovided under KRS 154.32-070.\n(b) Notwithstanding any provision of law to the contrar y, for any economic\ndevelopment project with an eligible investment of more than two hundred\nmillion dollars ($200,000,000), the authority may authorize approval to the\neconomic development project based upon terms and incentives applicable to\neconomic development project locating in a heritage county.\n(4) The General Assembly hereby finds and declares that the authority granted in this\nsubchapter and the purposes accomplished hereby are proper governmental and\npublic purposes for which public moneys may be  expended, and that the\ninducement of the location of economic development projects within the\nCommonwealth is of paramount importance to the economic well -being of the\nCommonwealth.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57126","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:56Z","sha256":"e35fb9921d5d733b6b5b8fa2fde42b264feaf60624bfe050040c71e63ca94a23","source_id":"us-ky","stale":false,"prev":"us-ky/krs-154.32-010","next":"us-ky/krs-154.32-030"},"notice":"GroundRules: Original legal text. Not legal advice."}