2011 Kentucky Revised Statutes Subchapter 23 Economic Development Projects in Qualified Zones 154.23.045 Application of eligible company to become approved company and expand existing business -- Base levels for eligible credits -- Exemption of employees from assessment -- Increase in number of employees at site -- Tax -- Additional agreements.
KY Rev Stat § 154.23.045 (1996 through Reg Sess) What's This?
154.23-045 Application of eligible company to become approved company and
expand existing business -- Base levels for eligible credits -- Exemption of
employees from assessment -- Increase in number of employees at site -- Tax -Additional agreements.
(1)
(2)
(3)
(4)
(5)
(6)
If an eligible company operates an existing business in a qualified zone, and wishes
to expand that business within the zone, the eligible company may submit an
application to the authority to become an approved company under KRS 154.23025.
If the eligible company under subsection (1) of this section becomes an approved
company, the authority shall determine a base level of employment in the
Commonwealth, a base level of state income tax liability, a base level of limited
liability entity tax liability under KRS 141.0401, and a base level of manufacturing
or service or technology activity, as applicable, of the approved company for
determining eligible credits for the approved company’s project during the term of a
tax incentive agreement or service and technology agreement. The base level shall
be determined by taking into consideration any seasonal fluctuations or aberrations
of employment levels during the preceding three (3) years. Notwithstanding the
determination of a base level of employment in the Commonwealth, no qualified
statewide employee who is an employee of this business prior to the date of the
preliminary approval by the authority as prescribed in KRS 154.23-030 shall be
subject to assessment.
The authority shall identify, by name, all of the existing qualified statewide
employees employed by the eligible company prior to preliminary approval, and
these employees shall be exempt from the assessment. If any of these employees
cease working in the activity, then another qualified statewide employee shall be
added to the base level of employment, based on the earliest date of entry into the
work force, and this employee shall be exempt from the assessment. The authority
may negotiate with the approved company a different method of determining the
base level of employment that would yield a more equitable result for the approved
company, the Commonwealth, local jurisdictions, and the qualified statewide
employees.
To become eligible for inducements, the approved company shall create and
maintain above the base level of employment in the Commonwealth, an increase at
the site of the project of at least ten (10) new full-time qualified employees.
The approved company shall continue to pay to the Commonwealth, on an
annualized basis during the term of the tax incentive agreement or service and
technology agreement, as applicable, the base level of income tax, and the limited
liability entity tax imposed under KRS 141.0401, adjusted on an annual basis to
reflect changes in the consumer price index. The excess income tax and limited
liability entity tax imposed under KRS 141.0401 owed may be offset by the income
tax credit provided in KRS 154.23-050.
If any approved company expands in a qualified zone because of an increase in
business or because of the commencement of a new line of business, it may be
eligible, at the discretion of the authority, to negotiate a separate, additional tax
incentive agreement or service and technology agreement to cover the expanded
business under the same conditions as authorized for an expansion in this section.
Effective: June 28, 2006
History: Amended 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 49, effective June 28,
2006. -- Amended 2002 Ky. Acts ch. 338, sec. 30, effective July 15, 2002. -- Created
2000 Ky. Acts ch. 528, sec. 9, effective July 14, 2000.
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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