{"data":{"id":"us-ky/krs-154.32-040","jurisdiction":"us-ky","citation":"KRS 154.32-040","heading":"Tax incentive agreement between authority and approved company --","body":"Contents.\nThe authority, upon final approval of a company, may enter into a tax incentive\nagreement with the approved company. The terms and conditions of the tax incentive\nagreement shall be negotiated between the authority and the approved company. The\nterms of the tax incentive agreement shall include but not be limited to the following\nprovisions:\n(1) The maximum approved costs that may be recovered over the term of the t ax\nincentive agreement and the annual maximum for approved costs;\n(2) That the approved company shall provide the authority with all documentation\nrequested in a manner acceptable to the authority;\n(3) Identification of the contribution of the local govern ment to the economic\ndevelopment project, if any;\n(4) The activation date, which shall be within two (2) years of final approval;\n(5) That the approved company shall implement the activation date by notifying the\nauthority;\n(6) That the approved company sh all provide documentation satisfactory to the\nauthority within the timeframes required by the authority that it has met the\nminimum employment, minimum investment, and minimum wage requirements,\nincluding employee benefits, established by KRS 154.32-020;\n(7) That failure of the approved company to meet any of the minimum job, minimum\ninvestment, or minimum wage requirements, including employee benefits,\nestablished by KRS 154.32-020, on the activation date shall result in cancellation of\nthe tax incentive agreement;\n(8) The term of the agreement, which shall not exceed fifteen (15) years for an\neconomic development project located in a heritage county, or ten (10) years for an\neconomic development project located in any other county;\n(9) Notwithstanding subsection (8) of this section, an approved company that received\npreliminary approval of an economic development project prior to January 1, 2023,\nin which wage assessments were provided pursuant to KRS 154.32 -090 may\nrequest a one (1) time extension for up t o five (5) years under the following\nconditions:\n(a) At the time the extension is granted, the approved company has received less\nthan seventy -five percent (75%) of the incentives awarded under the tax\nincentive agreement; and\n(b) The extension does not amend any provision of the tax incentive agreement\nimpacting the scope of the project or the maximum amount of incentives\nawarded under the tax incentive agreement;\n(10) That, if confirmed approved costs are less than the maximum approved costs\nincluded in the tax incentive agreement, the confirmed approved co sts shall become\nthe maximum amount that may be recovered by the approved company;\n(11) If the economic development project is a leased project, that future rent payments\nthat are included in eligible costs shall be included as confirmed approved costs\nupon submission of a valid lease agreement executed after preliminary approval;\n(12) Establishment of a job target and minimum wage target, including employee\nbenefits;\n(13) A requirement that the job target and minimum wage target, including employee\nbenefits, be measured:\n(a) On the activation date, against the actual new full -time jobs created and the\naverage wages, including employee benefits, paid for those jobs; and\n(b) Annually during each year of the agreement, against the annual average of the\nnew ful l-time jobs and the average wages paid for those jobs, including\nemployee benefits;\n(14) A provision requiring the approved company to notify the authority immediately if\nthe approved company sells or otherwise transfers or disposes of the land on which\nan economic development project is located, if a lease relating to the economic\ndevelopment project is terminated or lapses, or if the approved company ceases or\nfundamentally alters operations at the economic development project;\n(15) A provision detailing the reductions in incentives that will occur pursuant to KRS\n154.32-030(4) if an approved company fails to meet its job target or minimum wage\ntarget, including employee benefits;\n(16) That the agreement may be assigned by the approved company upon the ado ption\nof a resolution by the authority to that effect;\n(17) That the approved company shall make available to the authority all of its records\npertaining to the economic development project, including but not limited to payroll\nrecords, records relating to  eligible costs, and any other records pertaining to the\neconomic development project that the authority may require;\n(18) That the authority may share information with the department for the purposes of\nmonitoring and enforcing the terms of the tax incentive agreement;\n(19) That, if an approved company fails to comply with its obligations under the tax\nincentive agreement other than the jobs target or minimum wage target, the\nauthority may take any or all of the following actions:\n(a) Suspend the incentives available to the approved company;\n(b) Terminate the incentives available to the approved company; or\n(c) Pursue any other remedy set forth in the tax incentive agreement or to which it\nmay be entitled by law; and\n(20) Any other provisions not inconsiste nt with this subchapter and determined to be\nnecessary or appropriate by the parties to the tax incentive agreement.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57128","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:56Z","sha256":"1f0f30fb3aa3449d575ec973649f1453ba9b80025e521ae4819363157d8f68c6","source_id":"us-ky","stale":false,"prev":"us-ky/krs-154.32-030","next":"us-ky/krs-154.32-050"},"notice":"GroundRules: Original legal text. Not legal advice."}