2011 Kentucky Revised Statutes Subchapter 24 Financing of Jobs Development 154.24.130 Limit on term of inducement after agreement activation date -- Effect of excess in assessments.
KY Rev Stat § 154.24.130 (1996 through Reg Sess) What's This?
154.24-130 Limit on term of inducement after agreement activation date -- Effect
of excess in assessments.
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Before the end of the first year following the activation date, the authority shall,
using data supplied by the approved company, verify and determine the total startup costs for the approved company's economic development project. The initial
approved costs shall be fifty percent (50%) of the start-up cost.
Each year, during the ten (10) year life span of the agreement, fifty percent (50%) of
the annualized rental payments shall be added to the unrecouped balance of
approved costs.
Each year, the inducement earned and any in lieu of credits received shall be
subtracted from the approved costs.
If, in any fiscal year of the approved company during which the agreement is in
effect, the accumulated inducements equal the unrecouped remaining balance of the
approved costs then expended, the assessments collected from the wages of the
employees shall cease for the remainder of that fiscal year of the approved
company, and the approved company shall resume normal personal income tax and
occupational license fee withholdings from the employees' wages for the remainder
of that fiscal year.
If in any fiscal year of the approved company during which the agreement is in
effect, the total of the tax credit granted to the approved company plus the
assessment collected from the wages of the employees exceeds the remaining
balance of the approved costs then expended, the approved company shall pay the
excess to the Commonwealth as income tax or limited liability entity tax as the case
may be.
If in any fiscal year of the approved company during which the agreement is in
effect the assessment collected from the wages of the employees exceeds the
unrecouped remaining balance of the approved costs then expended, the assessment
collected from the wages of the employees shall cease for the remainder of that
fiscal year of the approved company, the approved company shall resume normal
personal income tax and occupational license fee withholdings from the employees'
wages for the remainder of that fiscal year, and the approved company shall remit to
the Commonwealth and applicable local jurisdictions their respective shares of the
excess assessment collected on the withholding filing date for employees' wages
next succeeding the first date when the approved company collected excess
assessments.
Effective: June 28, 2006
History: Amended 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 54, effective June 28,
2006. -- Amended 1994 Ky. Acts ch. 450, sec. 18, effective July 15, 1994. – Created
1992 Ky. Acts ch. 358, sec. 13, 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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