{"data":{"id":"us-ky/krs-154.34-110","jurisdiction":"us-ky","citation":"KRS 154.34-110","heading":"Purpose of subchapter -- Expenditure and employment retention","body":"requirements for recovery of costs and tax incentives -- Legislative findings --\nAnnual report.\n(1) The purpose of this subchapter is to provide a means for the Commonwealth to\npromote job retention by providing incentives for existing businesses to reinvest in\nexisting operations in Kentucky for eligible companies.\n(2) (a) To qualify for the incentives provided in this subchapter, an approved\ncompany shall:\n1. Incur eligible equipment and related costs of at least one million dollars\n($1,000,000) for leased projects and at least two million five hundred\nthousand dollars ($2,500,000) for all other reinvestment projects;\n2. Agree to maintain a full -time employment base of at least eighty-five\npercent (85%) at the facility on the date of preliminary approval; and\n3. Not have been awarded incentives under Subchapter 26 of this chapter\nfor a period of at least five (5) years prior to applying for incentives\nunder this subchapter.\n(b) An approved company meeting the expenditure and employment retention\nrequirements established by this subsection shall be eligible to recover up to\nfifty percent (50%) of the amount expended for eligible equipment and related\ncosts. The actual amount that a n approved company may recover shall be\nnegotiated with the authority, and may be less than the maximum amount for\nwhich the approved company is eligible.\n(3) An approved company shall be eligible for incentives under this subchapter as\nfollows: tax incent ives of up to one hundred percent (100%) of the Kentucky\nincome tax imposed under KRS 141.020 or 141.040 and the limited liability entity\ntax imposed under KRS 141.0401 on the income, Kentucky gross profits, or\nKentucky gross receipts of the approved compa ny generated by or arising from the\neligible project, as set forth in KRS 154.34-120.\n(4) The General Assembly finds and declares that:\n(a) The general welfare and material well -being of the citizens of the\nCommonwealth depend in large measure upon the rei nvestment and\ndevelopment of existing industry in the Commonwealth;\n(b) It is in the best interest of the Commonwealth to induce reinvestment in\nexisting facilities of eligible companies within the Commonwealth in order to\nadvance the public purposes of re lieving unemployment by preserving jobs\nthat may be lost if not for the incentives to be offered by the authority to\napproved companies, and by preserving and creating sources of tax revenues\nfor the support of public services provided by the Commonwealth; and\n(c) The authority prescribed by this subchapter and the purposes to be\naccomplished under this subchapter are proper governmental and public\npurposes for which public moneys may be expended.\n(5) On or before November 1, 2021, and each November 1 thereafter, the authority\nshall submit an overview report to the Interim Joint Committee on Appropriations\nand Revenue and the Governor on the success or failure of each completed project\nin order to deter mine the effectiveness of the program. The report shall include but\nnot be limited to the following information:\n(a) The number of applications receiving preliminary approval during the fiscal\nyear;\n(b) The number of final approvals issued during the fiscal year;\n(c) The total amount of eligible equipment and other costs projected by the\napproved company at preliminary approval;\n(d) The total amount of eligible equipment and other costs actually incurred by\nthe approved company at final approval;\n(e) The total number of full time jobs required to be preserved or retained as a\nresult of the reinvestment project;\n(f) The total actual number of full -time jobs reported by the reinvestment project\nas being preserved or retained on an annual basis;\n(g) The maximum  approved costs that may be recovered by the approved\ncompanies for the reinvestment projects; and\n(h) The location of the reinvestment projects receiving preliminary and final\napproval during the fiscal year.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=51561","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:56Z","sha256":"cb986dd75c131cddeec8dce829cafeca4e14f3227aa1447190a46eae6431619c","source_id":"us-ky","stale":false,"prev":"us-ky/krs-154.34-100","next":"us-ky/krs-154.34-120"},"notice":"GroundRules: Original legal text. Not legal advice."}