154.32.020 Incentives to induce location of economic development projects in the Commonwealth -- Purposes -- Requirements -- Summary of incentives available -- Legislative findings. - Kentucky Statutes

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Page 1 of 2 154.32-020 Incentives to induce location of economic development projects in the Commonwealth -- Purposes -- Requirements -- Summary of incentives
available -- Legislative findings. (1) The purposes of this subchapter are: (a) To provide incentives for eligible companies and to encourage the location or expansion of manufacturing facilities, agribusiness operations, nonretail
service or technology facilities, and regional or national corporate
headquarters in the Commonwealth to advance the public purposes of:
1. Creation of new jobs that, but for the incentives offered by the authority,
would not exist within the Commonwealth; 2. Creation of new sources of tax revenues for the support of public
services provided by the Commonwealth; and 3. Improvement in the quality of life for Kentucky citizens through the
creation of sustainable jobs with higher salaries; and (b) To provide enhanced incentives for companies that locate in enhanced incentive counties in recognition of the depressed economic conditions in
those counties and the increased need for the growth and development caused
by the depressed economic conditions. (2) (a) To qualify for the incentives provided by subsection (3) of this section, an approved company shall:
1. Incur eligible costs of at least one hundred thousand dollars ($100,000); 2. Create at least ten (10) new full-time jobs and maintain an annual
average number of at least ten (10) new full-time jobs; and 3. a. Pay at least ninety percent (90%) of all new full-time employees
whose jobs were created as a result of the economic development
project a minimum wage of at least one hundred twenty-five
percent (125%) of the federal minimum wage in enhanced
incentive counties, and one hundred fifty percent (150%) of the
federal minimum wage in other counties throughout the term of
the economic development project; and b. Provide employee benefits for all new full-time jobs equal to at
least fifteen percent (15%) of the minimum wage target established
by the tax incentive agreement. If the eligible company does not
provide employee benefits equal to at least fifteen percent (15%)
of the minimum wage target established by the tax incentive
agreement, the eligible company may still qualify for incentives if
it provides the full-time employees hired as a result of the
economic development project total hourly compensation equal to
or greater than one hundred fifteen percent (115%) of the
minimum wage target established in the tax incentive agreement
through increased hourly wages combined with employee benefits. (b) To qualify for the advance disbursement provided by KRS 154.32-080, an approved company shall commit to meeting the job and wage requirements Page 2 of 2 established by paragraph (a) of this subsection, and shall provide
documentation indicating that the proposed economic development project
will require investment of at least five hundred million dollars
($500,000,000). (3) The incentives available under this subchapter are as follows: (a) Tax credits of up to one hundred percent (100%) of the Kentucky income tax imposed under KRS 141.020 or 141.040 and the limited liability entity tax
imposed under KRS 141.0401 on the income, Kentucky gross profits, or
Kentucky gross receipts of the approved company generated by or arising
from the economic development project, as set forth in KRS 141.415 and
154.32-070; (b) Authorization for the approved company to impose a wage assessment against the gross wages of each new employee subject to the Kentucky income tax as
provided in KRS 154.32-090; and (c) For economic development projects with an investment of more than five hundred million dollars ($500,000,000), an advance disbursement as provided
in KRS 154.32-080. (4) The General Assembly hereby finds and declares that the authority granted in this subchapter and the purposes accomplished hereby are proper governmental and
public purposes for which public moneys may be expended, and that the
inducement of the location of economic development projects within the
Commonwealth is of paramount importance to the economic well-being of the
Commonwealth. Effective: June 26, 2009
History: Created 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 10, effective June 26, 2009.