{"data":{"id":"us-ky/krs-154.32-030","jurisdiction":"us-ky","citation":"KRS 154.32-030","heading":"Application, approval, and review process -- Memorandum of","body":"agreement -- Preliminary and final approval -- Tax incentive agreement --\nStandards for approval -- Partial satisfaction of eligibility requirements.\n(1) The application, approval, and  review process under this subchapter shall 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 and any additional information submitted, the\nauthority may, by resolution, give preliminary approval to an eligible\ncompany and authorize the negotiation and execution of a memorandum of\nagreement. The memorandum o f agreement shall establish a preliminary job\ntarget, minimum wage target, including employee benefits, and maximum\ntotal approved cost for the economic development project, and shall only\nallow the recovery of eligible costs incurred ninety (90) days prio r to receipt\nof preliminary approval. Upon preliminary approval, the preliminarily\napproved company may undertake the project in accordance with the\nmemorandum of agreement, and may begin to hire employees that may be\ncounted toward the minimum full -time j ob requirements established by the\nmemorandum of agreement;\n(c) After preliminary approval but before final approval, the authority shall post\nthe preliminarily approved company's name, the location of the economic\ndevelopment project, and the incentives that have been preliminarily approved\non the Cabinet for Economic Development's website;\n(d) The preliminarily approved company shall submit any documentation\nrequired by the authority upon request of the authority;\n(e) To obtain final approval, the preliminarily approved company shall submit:\n1. Documentation required by the authority to confirm that the\nrequirements established by the memorandum of agreement have been\nmet; and\n2. Documentation of official action taken by a local governmental entity\ndetailing the manner and level of local contribution, if applicable.\nUpon review and c onfirmation of the documentation, the authority may, by\nresolution, give final approval to the preliminarily approved company, and\nauthorize the execution of a tax incentive agreement between the authority\nand the approved company pursuant to KRS 154.32 -040. The tax incentive\nagreement shall establish an activation date, which shall be within two (2)\nyears of final approval;\n(f) 1. On or before the activation date, the approved company shall notify the\nauthority of its intention to activate the tax incentiv e agreement. The\napproved company shall submit:\na. Documentation that it has met the minimum full -time job,\nminimum investment, and minimum wage and employee benefits\nrequirements established by KRS 154.32 -020 as of the date of\nactivation; and\nb. The confirmed approved costs incurred as of the date of activation,\nwhich shall be the total eligible costs that may be recovered by the\napproved company.\n2. If the approved company fails to meet any of the minimum investment,\nfull-time job, or wage requirements, i ncluding employee benefits,\nestablished by KRS 154.32 -020 on the activation date, the tax incentive\nagreement shall be canceled and the approved company shall not be\neligible for incentives.\n3. If an approved company meets the minimum investment, full -time job,\nand wage requirements, including employee benefits, established by\nKRS 154.32 -020, but fails to meet higher job targets and minimum\nwage targets, including employee benefits, established in the tax\nincentive agreement, then the provisions of subsection (4) of this section\nshall apply in determining the incentives for which the approved\ncompany qualifies.\n4. Upon activation of a tax incentive agreement, the authority shall notify\nthe department, and shall provide the department with the information\nnecessary to monitor and track the incentives taken by the approved\ncompany; and\n(g) 1. The authority shall monitor the tax incentive agreement at least\nannually, and the approved company shall submit all documentation\nnecessary for the authority to monitor the agreement.\n2. The authority shall, based on the documentation provided, confirm that\nthe approved company is in continued compliance with the provisions of\nthe tax incentive agreement and, therefore, eligible for incentives.\n3. Upon annual review, if th e approved company meets the minimum job\nand wage requirements, including employee benefits, established by\nKRS 154.32 -020, but fails to meet the job target and minimum wage\ntarget, including employee benefits, established in the tax incentive\nagreement, t hen the provisions of subsection (4) of this section shall\napply in determining the incentives for which the approved company\nqualifies in any year.\n4. Upon final approval, the authority shall notify the department that an\napproved company is eligible for incentives and shall provide the\ndepartment with the information necessary to monitor the use of\nincentives by the approved company. If, at any time during the term of\nthe tax incentive agreement, an approved company becomes ineligible\nfor incentives, the authority shall notify the department, and the\ndepartment shall discontinue the availability of incentives for the\napproved company.\n(2) (a) The authority may establish procedures and standards for the review and\napproval of eligible companies and their ec onomic development projects\nthrough the promulgation of administrative regulations in accordance with\nKRS Chapter 13A.\n(b) Standards to be used by the authority in reviewing and approving an eligible\ncompany and its economic development project shall inclu de but not be\nlimited to:\n1. The creditworthiness of the eligible company;\n2. The proposed capital investment to be made;\n3. The number of new full-time jobs to be provided for the residents of the\nCommonwealth and the wages to be paid;\n4. Support of the local community; and\n5. The likelihood of the economic success of the economic development\nproject.\n(3) The application shall include but not be limited to:\n(a) The name of the applicant and identification of any affiliates of the applicant\nwho will have some relation to the economic development project;\n(b) A description of the economic development project, including its location, the\ntotal investment in the economic development project, and total proposed\neligible costs;\n(c) The projected number of new ful l-time jobs to be created as a result of the\neconomic development project and identification of any affiliates who may\nemploy persons hired to fill those jobs;\n(d) The number of existing full-time jobs at the site of the economic development\nproject on the date of the application and a description and breakdown of the\nrelevant affiliated employers;\n(e) Proposed wage and employee benefit amounts for the new full-time jobs to be\ncreated as a result of the proposed economic development project;\n(f) For proposed economic development projects new to the Commonwealth,\ncertification by the eligible company that the economic development project\ncould reasonably and efficiently locate outside of the Commonwealth and,\nwithout the incentives offered by the a uthority, the eligible company would\nlikely locate outside the Commonwealth;\n(g) For eligible companies with an existing location in the Commonwealth\nconsidering an expansion, certification that the tax incentives are necessary\nfor the expansion to occur;\n(h) A letter of support from a local governmental entity in the city or county\nwhere the economic development project will be located; and\n(i) Any other information the authority may require.\n(4) (a) An approved company that meets the minimum job and wage requirements,\nincluding employee benefits established by KRS 154.32-020, but fails to meet\nthe job target and minimum wage target, including employee benefits\nestablished by the tax incentive agreement, shall be eligible to receive the\nincentives authorize d by the tax incentive agreement as provided in this\nsubsection.\n(b) If, upon activation or annual review, an approved company achieves at least\nninety percent (90%) of both the job target and minimum wage target,\nincluding employee benefits established by  the tax incentive agreement, and\nno other default has occurred, then the approved company shall be eligible to\nreceive full incentives as provided in the tax incentive agreement.\n(c) If, upon activation or annual review, an approved company achieves less than\nninety percent (90%) of either the job target or minimum wage target,\nincluding employee benefits established in the tax incentive agreement, and\nno other default has occurred, then the incentives available to the approved\ncompany for the following ye ar shall be reduced by a percentage equal to the\npercentage representing the difference between the job target or minimum\nwage target, including employee benefits established in the tax incentive\nagreement, and the actual average number of full -time jobs o r average wage,\nincluding employee benefits, paid. If both the number of actual average full -\ntime jobs and average wages paid, including employee benefits, are below\nninety percent (90%) of the targets on the same measurement date, then the\ngreater percent age reduction of the two (2) shall be applied rather than\nreducing the incentives available by the sum of the two (2).\n(d) If, upon annual review, either the actual number of new full -time jobs or the\naverage wages paid for those jobs, including employee b enefits, is less than\nthe minimum requirements established by KRS 154.32 -020, then the\neconomic development project may be suspended automatically or, with\napproval of the authority, terminated.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57127","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:56Z","sha256":"432196241e4be844afd04dd25d9a0b61bad8c2e3e398b2ec617c5ddecfdac3b8","source_id":"us-ky","stale":false,"prev":"us-ky/krs-154.32-020","next":"us-ky/krs-154.32-040"},"notice":"GroundRules: Original legal text. Not legal advice."}