154.22.010 Definitions for KRS 154.22-010 to 154.22-080. - Kentucky Statutes

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154.22-010 Definitions for KRS 154.22-010 to 154.22-080. The following words and terms as used in KRS 154.22-010 to 154.22-080, unless the
context clearly indicates a different meaning, shall have the following meanings:
(1) "Activation date" means a date selected by an approved company in the tax incentive agreement at any time within a two (2) year period after the date of final
approval of the tax incentive agreement by the authority; (2) "Affiliate" means the following: (a) Members of a family, including only brothers and sisters of the whole or half blood, spouse, ancestors, and lineal descendants of an individual; (b) An individual, and a corporation more than fifty percent (50%) in value of the outstanding stock of which is owned, directly or indirectly, by or for that
individual; (c) An individual, and a limited liability company of which more than fifty percent (50%) of the capital interest or profits are owned or controlled,
directly or indirectly, by or for that individual; (d) Two (2) corporations which are members of the same controlled group, which includes and is limited to:
1. One (1) or more chains of corporations connected through stock
ownership with a common parent corporation, if:
a. Stock possessing more than fifty percent (50%) of the total
combined voting power of all classes of stock entitled to vote or
more than fifty percent (50%) of the total value of shares of all
classes of stock of each of the corporations, except the common
parent corporation, is owned by one (1) or more of the other
corporations; and b. The common parent corporation owns stock possessing more than
fifty percent (50%) of the total combined voting power of all
classes of stock entitled to vote or more than fifty percent (50%) of
the total value of shares of all classes of stock of at least one (1) of
the other corporations, excluding, in computing the voting power
or value, stock owned directly by the other corporations; or 2. Two (2) or more corporations, if five (5) or fewer persons who are
individuals, estates, or trusts own stock possessing more than fifty
percent (50%) of the total combined voting power of all classes of stock
entitled to vote or more than fifty percent (50%) of the total value of
shares of all classes of stock of each corporation, taking into account the
stock ownership of each person only to the extent the stock ownership is
identical with respect to each corporation; (e) A grantor and a fiduciary of any trust;
(f) A fiduciary of a trust and a fiduciary of another trust, if the same person is a grantor of both trusts; (g) A fiduciary of a trust and a beneficiary of that trust; (h) A fiduciary of a trust and a beneficiary of another trust, if the same person is a grantor of both trusts; (i) A fiduciary of a trust and a corporation more than fifty percent (50%) in value of the outstanding stock of which is owned, directly or indirectly, by or for the
trust or by or for a person who is a grantor of the trust; (j) A fiduciary of a trust and a limited liability company more than fifty percent (50%) of the capital interest, or the interest in profits, of which is owned
directly or indirectly, by or for the trust or by or for a person who is a grantor
of the trust; (k) A corporation, a partnership, and a limited partnership, if the same persons own:
1. More than fifty percent (50%) in value of the outstanding stock of the
corporation; and 2. More than fifty percent (50%) of the capital interest, or the profits
interest, in the partnership or limited partnership; (l) A corporation and a limited liability company, if the same persons own: 1. More than fifty percent (50%) in value of the outstanding stock of the
corporation; and 2. More than fifty percent (50%) of the capital interest or the profits in the
limited liability company; (m) A partnership, limited partnership, and a limited liability company, if the same persons own:
1. More than fifty percent (50%) of the capital interest or profits in the
partnership or limited partnership; and 2. More than fifty percent (50%) of the capital interest or the profits in the
limited liability company; (n) An S corporation and another S corporation, if the same persons own more than fifty percent (50%) in value of the outstanding stock of each corporation,
S corporation designation being the same as that designation under the
Internal Revenue Code of 1986, as amended; or (o) An S corporation and a C corporation, if the same persons own more than fifty percent (50%) in value of the outstanding stock of each corporation; S and C
corporation designations being the same as those designations under the
Internal Revenue Code of 1986, as amended; (3) "Agribusiness" means any activity involving the processing of raw agricultural products, including timber, or the providing of value-added functions with regard to
raw agricultural products; (4) "Approved company" means any eligible company seeking to locate an economic development project in a qualified county, which eligible company is approved by
the authority pursuant to KRS 154.22-010 to 154.22-080; (5) "Approved costs" means: (a) Obligations incurred for labor and to contractors, subcontractors, builders, and materialmen in connection with the acquisition, construction, installation,
equipping, and rehabilitation of an economic development project; (b) The cost of acquiring land or rights in land and any cost incidental thereto, including recording fees; (c) The cost of contract bonds and of insurance of all kinds that may be required or necessary during the course of acquisition, construction, installation,
equipping, and rehabilitation of an economic development project which is
not paid by the contractor or contractors or otherwise provided for; (d) All costs of architectural and engineering services, including test borings, surveys, estimates, plans and specifications, preliminary investigations, and
supervision of construction, as well as for the performance of all the duties
required by or consequent upon the acquisition, construction, installation,
equipping, and rehabilitation of an economic development project; (e) All costs which shall be required to be paid under the terms of any contract or contracts for the acquisition, construction, installation, equipping, and
rehabilitation of an economic development project; and (f) All other costs of a nature comparable to those described above; (6) "Assessment" means the job development assessment fee authorized by KRS 154.22-010 to 154.22-080; (7) "Authority" means the Kentucky Economic Development Finance Authority as created in KRS 154.20-010; (8) "Average hourly wage" means the wage and employment data published by the Office of Employment and Training within the Department of Workforce
Investment in the Education and Workforce Development Cabinet collectively
translated into wages per hour based on a two thousand eighty (2,080) hour work
year for the following sectors:
(a) Manufacturing;
(b) Transportation, communications, and public utilities;
(c) Wholesale and retail trade;
(d) Finance, insurance, and real estate; and
(e) Services; (9) "Commonwealth" means the Commonwealth of Kentucky;
(10) (a) "Economic development project" means and includes: 1. The acquisition of ownership in any real estate in a qualified county by
the authority, the approved manufacturing or agribusiness company, or
its affiliate; 2. The present ownership of real estate in a qualified county by the
approved manufacturing or agribusiness company or its affiliate; 3. The acquisition or present ownership of improvements or facilities, as
described in paragraph (b) of this subsection, on land which is possessed or is to be possessed by the approved manufacturing or agribusiness
company pursuant to a ground lease having a term of sixty (60) years or
more; 4. The new construction of an electric generation facility; and 5. The legal possession of facilities by an approved company or its affiliate
pursuant to a lease having a term equal to or greater than fifteen (15)
years with a third-party entity, negotiated at arm's length, if the facility
will be used by the approved company to conduct the approved activity
for which the inducement has been granted. An economic development
project qualifying under this subparagraph shall only be eligible for
credits against equipment and costs related to installation of equipment
and for purposes of the tax credits provided under the provisions of KRS
154.22-010 to 154.22-080 only to the extent of twenty thousand dollars
($20,000) per job created by and maintained at the economic
development project. Notwithstanding KRS 154.22-050(8) and 154.22-
060, an economic development project qualifying under this
subparagraph shall be eligible only for the aggregate assessments
pursuant to KRS 154.22-070 withheld by the approved company each
year and shall not be eligible for credit against Kentucky income tax and
limited liability entity tax. (b) For purposes of paragraph (a)1. and 2. of this subsection, ownership of real estate shall only include fee ownership of real estate and possession of real
estate pursuant to a capital lease as determined in accordance with Statement
of Financial Accounting Standards No. 13, Accounting for Leases, issued by
the Financial Accounting Standards Board, November 1976. With respect to
paragraph (a)1., 2., and 3. of this subsection or this paragraph, the
construction, installation, equipping, and rehabilitation of improvements,
including fixtures and equipment, and facilities necessary or desirable for
improvement of the real estate, including surveys; site tests and inspections;
subsurface site work; excavation; removal of structures, roadways, cemeteries,
and other surface obstructions; filling, grading, and provision of drainage,
storm water retention, installation of utilities such as water, sewer, sewage
treatment, gas, electricity, communications, and similar facilities; off-site
construction of utility extensions to the boundaries of the real estate; and the
acquisition, installation, equipping, and rehabilitation of manufacturing
facilities on the real estate, for use and occupancy by the approved company or
its affiliates for manufacturing purposes, electric generation, or for
agribusiness purposes. Pursuant to paragraph (a)3. and 5. of this subsection,
an economic development project shall not include lease payments made
pursuant to a ground lease for purposes of the tax credits provided under the
provisions of KRS 154.22-010 to 154.22-080; (11) "Electric generation" means the generation of electricity for resale by means of combusting at least fifty percent (50%) of the total fuel used to generate electricity
from coal or from gas derived from coal; (12) "Eligible company" means any corporation, limited liability company, partnership, limited partnership, sole proprietorship, business trust, or any other entity engaged
in manufacturing, electric generation, or in agribusiness; (13) "Employee benefits" means nonmandated costs paid by an eligible company for its full-time employees for health insurance, life insurance, dental insurance, vision
insurance, defined benefits, 401(k), or similar plans; (14) "Final approval" means the action taken by the authority authorizing the eligible company to receive inducements under this subchapter; (15) "Full-time employee" means a person employed by an approved company for a minimum of thirty-five (35) hours per week and subject to the state income tax
imposed by KRS 141.020; (16) "Inducements" means the assessment and the tax credits allowed by KRS 154.22-060; (17) "Manufacturing" means any activity involving the manufacturing, processing, assembling, or production of any property, including the processing resulting in a
change in the conditions of the property and any activity related to it, together with
the storage, warehousing, distribution, and related office facilities; however,
"manufacturing" shall not include mining, coal or mineral processing, or extraction
of minerals; (18) "Preliminary approval" means the action taken by the authority conditioning final approval by the authority upon satisfaction by the eligible company of the
requirements under this subchapter; (19) "Qualified county" means any county certified as such by the authority pursuant to KRS 154.22-010 to 154.22-080; (20) "Revenues" shall not be considered state funds;
(21) "State agency" shall have the meaning assigned to the term in KRS 56.440(8);
(22) "Tax incentive agreement" means the agreement entered into, pursuant to KRS 154.22-050, between the authority and an approved company with respect to an
economic development project; (23) "Kentucky gross receipts" means "Kentucky gross receipts" as defined in KRS 141.0401; and (24) "Kentucky gross profits" means "Kentucky gross profits" as defined in KRS 141.0401. Effective: July 15, 2010
History: Repealed and reenacted 2010 Ky. Acts ch. 51, sec. 43, effective July 15, 2010. -- Amended 2009 Ky. Acts ch. 11, sec. 37, effective June 25, 2009. -- Amended 2007
Ky. Acts ch. 75, sec. 1, effective June 26, 2007; and ch. 137, sec. 43, effective June
26, 2007. -- Amended 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 43, effective June
28, 2006. -- Amended 2006 Ky. Acts ch. 149, sec. 216, effective July 12, 2006; and
ch. 211, sec. 69, effective July 12, 2006. -- Amended 2004 Ky. Acts ch. 105, sec. 2,
effective July 13, 2004. -- Amended 2002 Ky. Acts ch. 338, sec. 19, effective July
15, 2002. -- Amended 2000 Ky. Acts ch. 321, sec. 1, effective July 14, 2000. --
Amended 1996 Ky. Acts ch. 194, sec. 29, effective July 15, 1996. -- Amended 1994
Ky. Acts ch. 390, sec. 4, effective July 15, 1994; and ch. 450, sec. 3, effective July 15, 1994.