154.24-010 Definitions for KRS 154.24-010 to 154.24-150.
The following words and terms, unless the context clearly indicates a different meaning,
shall have the following respective meanings in KRS 154.24-010 to 154.24-150:
(1) "Affiliate" has the same meaning as in KRS 154.22-010;
(2) "Agreement" means the service and technology agreement made pursuant to KRS
154.24-120, between the authority and an approved company with respect to an
economic development project;
(3) "Approved company" means any eligible company seeking to locate an economic
development project from outside the Commonwealth into the Commonwealth, or
undertaking an economic development project in the Commonwealth for which it is
approved pursuant to KRS 154.24-100;
(4) "Approved costs" means fifty percent (50%) of the total of the start-up costs up to a
maximum of ten thousand dollars (,000) per new full-time job created and to be
held by a Kentucky resident subject to the personal income tax of the
Commonwealth, plus fifty percent (50%) of the annual rent for each elapsed year of
the service and technology agreement;
(5) "Assessment" means the "service and technology job creation assessment fee"
authorized by KRS 154.24-110;
(6) "Authority" means the Kentucky Economic Development Finance Authority, as
created in KRS 154.20-010;
(7) "Average hourly wage" means the wage and employment data published by the
Office of Employment and Training within the Department of Workforce
Investment within 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;
(8) "Commonwealth" means the Commonwealth of Kentucky;
(9) "Economic development project" or "project" means a new or expanded service or
technology activity conducted at a new or expanded site by:
(a) An approved company; or
(b) An approved company and its affiliate or affiliates;
(10) "Eligible company" means any corporation, limited liability company, partnership,
limited partnership, sole proprietorship, business trust, or any other entity engaged
in service or technology and meeting the standards promulgated by the authority in
accordance with KRS Chapter 13A;
(11) "Employee benefits" means nonmandated costs paid by an approved company for
its full-time employees for health insurance, life insurance, dental insurance, vision
insurance, defined benefits, 401(k) or similar plans;
(12) "Final approval" means the action taken by the authority authorizing the eligible
company to receive inducements under this subchapter;
(13) "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 tax imposed by
KRS 141.020;
(14) "In lieu of credits" means a local government appropriation to the extent permitted
by law, or other form of local government grant or service benefit, directly related
to the economic development project and in an amount equal to one percent (1%) of
employees' gross wages, exclusive of any noncash benefits provided to an
employee, or the provision by a local government of an in-kind contribution directly
related to the economic development project and in an amount equal to one half
(1/2) of the rent for the duration of the agreement;
(15) "Inducements" means the tax credits allowed and the assessment authorized by KRS
154.24-110, which are intended to induce companies engaged in service and
technology industries to locate or expand in the Commonwealth;
(16) "Person" means an individual, sole proprietorship, partnership, limited partnership,
joint venture, trust, unincorporated organization, association, corporation, limited
liability company, institution, entity or government, whether federal, state, county,
city, or otherwise, including without limitation any instrumentality, division,
political subdivision, district, court, agency, or department thereof;
(17) "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;
(18) "Rent" means:
(a) The actual annual rent or leasing fee paid by an approved company to a bona
fide entity negotiated at arms length for the use of a building by the approved
company to conduct the approved activity for which the inducement has been
granted; or
(b) The fair rental value on an annual basis in a building owned by the approved
company of the space used by the approved company to conduct the approved
activity for which the inducement has been granted as determined by the
authority using criteria which is customary in the real estate industry for the
type of building being used. The fair rental value shall include an analysis of
the cost of amortizing the cost of land and building over the period of time
customary in the real estate industry for the type of building and for the land
being utilized;
(c) Rent shall include the customary cost of occupancy, including but not limited
to property taxes, heating and air-conditioning, electricity, water, sewer, and
insurance;
(19) (a) "Service or technology" means either:
1.
Any activity involving the performance of work, except work classified
by the divisions, including successor divisions, of agriculture, forestry
and fishing, mining, utilities, construction, manufacturing, wholesale
trade, retail trade, real estate rental and leasing, educational services,
accommodation and food services, and public administration in
accordance with the "North American Industry Classification System,"
as revised by the United States Office of Management and Budget from
time to time, or any successor publication; or
2.
Regional or headquarters operations of an entity engaged in an activity
listed in subparagraph 1. of this paragraph.
(b) Notwithstanding paragraph (a) of this subsection, "service or technology"
shall not include any activity involving the performance of work by an
individual who is providing direct service to the public pursuant to a license
issued by the state or an association that licenses in lieu of the state unless
seventy-five percent (75%) of the services provided by the eligible company
from the project are provided to persons located outside the Commonwealth
during the period in which it receives the inducements authorized in KRS
154.24-110; and
(20) "Start-up costs" means the acquisition cost associated with the project related to the
furnishing and equipping the building for ordinary business functions, including
computers, furnishings, office equipment, the relocation of out-of-state equipment,
and nonrecurring costs of fixed telecommunication equipment as verified and
approved by the authority in accordance with KRS 154.24-130.
Effective: June 25, 2009
History: Amended 2009 Ky. Acts ch. 11, sec. 41, effective June 25, 2009. -- Amended
2008 Ky. Acts ch. 50, sec. 1, effective April 10, 2008. -- Amended 2006 (1st Extra.
Sess.) Ky. Acts ch. 2, sec. 51, effective June 28, 2006. -- Amended 2006 Ky. Acts
ch. 149, sec. 218, effective July 12, 2006; and ch. 211, sec. 73, effective July 12,
2006. -- Amended 2004 Ky. Acts ch. 105, sec. 10, effective July 13, 2004. -Amended 2002 Ky. Acts ch. 338, sec. 32, effective July 15, 2002. -- Amended 1996
Ky. Acts ch. 194, sec. 36, effective July 15, 1996. -- Amended 1994 Ky. Acts
ch. 450, sec. 11, effective July 15, 1994; and ch. 499, sec. 21, effective July 15,
1994. – Created 1992 Ky. Acts ch. 358, sec. 1, effective July 14, 1992.
Legislative Research Commission Note (6/28/2006). 2006 (1st Extra Sess.) Ky. Acts
ch. 2, sec. 73, provides that "unless a provision of this Act specifically applies to an
earlier tax year, the provisions of this Act shall apply to taxable years beginning on or
after January 1, 2007."
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