154.34-010 Definitions for subchapter.
As used in this subchapter: <br>(1) "Approved company" means an eligible company approved for a reinvestment
project;
(2) "Approved costs" means the sum of the:
(a) Eligible equipment and related costs; and <br>(b) Eligible skills upgrade training costs;
approved by the authority that may be recovered by an approved company through <br>the incentives authorized by this subchapter;
(3) "Authority" means the Kentucky Economic Development Finance Authority created
by KRS 154.20-010;
(4) "Commonwealth" means the Commonwealth of Kentucky; <br>(5) "Department" means the Department of Revenue; <br>(6) "Eligible company" means any corporation, limited liability company, partnership,
limited partnership, sole proprietorship, business trust, or any other entity engaged <br>in manufacturing at a facility located and operating within the Commonwealth on a <br>permanent basis for a reasonable period of time preceding the request for approval <br>of a reinvestment project by the authority;
(7) (a) "Eligible equipment and related costs" means:
1.
Obligations incurred for labor and to vendors, contractors, <br>subcontractors, builders, suppliers, deliverymen, and materialmen in <br>connection with the acquisition, construction, equipping, rehabilitation, <br>and installation of a reinvestment project;
2.
The cost of contract bonds and of insurance of all kinds that may be <br>required or necessary during the course of acquisition, construction, <br>equipping, rehabilitation, and installation of a reinvestment project <br>which is not paid by the vendor, supplier, deliveryman, contractor, or <br>otherwise provided;
3.
All costs of architectural and engineering services, including estimates, <br>plans and specifications, preliminary investigations, and supervision of <br>construction, rehabilitation and installation, as well as for the <br>performance of all the duties required by or consequent upon the <br>acquisition, construction, equipping, rehabilitation, and installation of a <br>reinvestment project;
4.
All costs required to be paid under the terms of any contract for the <br>acquisition, construction, equipping, rehabilitation, and installation of a <br>reinvestment project;
5.
All costs required for the installation of utilities, including but not <br>limited to water, sewer, sewer treatment, gas, electricity, <br>communications, and access to transportation, and including off-site <br>construction of the facilities paid for by the approved company; and
6.
All other costs of a nature comparable to those described in this <br>paragraph.
(b) "Eligible equipment and related costs" does not include costs related to the
replacement or repair of existing machinery or equipment resulting from <br>normal wear and usage of the machinery;
(8) "Eligible skills upgrade training costs" means costs incurred by an approved
company in connection with an occupational training program for full-time <br>employees specifically related to training or retraining employees as part of the <br>reinvestment project, including the following: <br>(a) Fees or salaries paid to instructors, whether those instructors are employees of
the approved company, contractors, or consultants;
(b) Administrative fees paid to educational institutions; <br>(c) Amounts paid for supplies, materials, and equipment used exclusively for the
occupational training program;
(d) Amounts paid to lease a training facility if sufficient training space is not
available at the approved company or at an educational institution;
(e) Amounts paid to employees as wages for attending the occupational training
program;
(f) Amounts paid for travel expenses for employees; and <br>(g) All other costs of a nature comparable to those described in this subsection;
(9) "Equipment" means manufacturing machinery installed by the approved company
as part of the reinvestment project;
(10) "Final approval" means the action taken by the authority designating a preliminarily
approved eligible company as an approved company;
(11) "Full-time" means a minimum of thirty-five (35) hours per week; <br>(12) "Kentucky gross profits" has the same meaning as in KRS 141.0401; <br>(13) "Kentucky gross receipts" has the same meaning as in KRS 141.0401; <br>(14) "Manufacturing" means any activity involving the processing, assembling, or
production of any property, including activities that result in a change in the <br>condition of the property. "Manufacturing" includes any activity or function related <br>to the manufacturing activity, including storage, warehousing, distribution, and <br>related office facilities;
(15) "Preliminary approval" means the action taken by the authority designating an
eligible company as a preliminarily approved company;
(16) "Reinvestment agreement" means the agreement entered into pursuant to KRS
154.34-080 between the authority and an approved company with respect to a <br>reinvestment project; and
(17) "Reinvestment project" means:
(a) A reinvestment in the physical plant of a manufacturing facility, and in the
full-time employees of a manufacturing facility, through:
1.
The acquisition, construction, and installation of new equipment and, <br>with respect thereto, the construction, rehabilitation, and installation of <br>improvements to facilities necessary to house the new equipment, <br>including surveys; installation of utilities, including water, sewer, <br>sewage treatment, gas, electricity, communications, and similar <br>facilities; or off-site construction of utility extensions to the boundaries <br>of the real estate on which the facilities are located; and
2.
The development of an occupational training program to train or retrain <br>the full-time employees of the company to support the reinvestment in <br>the manufacturing facility, if applicable, for the purpose of improving <br>the economic and operational situation of a company; and
(b) The expenditure of at least two million five hundred thousand dollars
($2,500,000) in eligible equipment and related costs.
Effective: June 26, 2009 <br>History: Amended 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 1, effective June 26,
2009. -- Amended 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 61, effective June 28, <br>2006. -- Amended 2006 Ky. Acts ch. 149, sec. 221, effective July 12, 2006. -- <br>Created 2003 Ky. Acts ch. 148, sec. 1, effective June 24, 2003.
Legislative Research Commission Note (6/26/2009). 2009 (1st Extra. Sess.) Ky. Acts
ch. 1, sec. 7, provides that, notwithstanding the amendments contained in Sections 1 <br>to 6 of that Act (which includes this statute), "all reinvestment projects preliminarily <br>approved on or after the effective date of this Act shall not be eligible for final <br>approval until July 1, 2010"; and 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 8, <br>provides that, notwithstanding the amendments in Sections 1 to 6 of that Act or the <br>repeals in Section 114 of that Act, "all reinvestment projects preliminarily or finally <br>approved prior to the effective date of this Act shall be governed by Subchapter 34 of <br>KRS Chapter 154 as it existed prior to the effective date of this Act."
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 <br>earlier tax year, the provisions of this Act shall apply to taxable years beginning on or <br>after January 1, 2007."
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