2013 Kentucky Revised Statutes CHAPTER 144 - TAX INCENTIVES FOR ECONOMIC DEVELOPMENT 144.130 Application for credits -- Date for meeting qualifications -- Pro rata forfeiture of credits -- Extensions -- Notice requirements for department.
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144.130 Application for credits -- Date for meeting qualifications -- Pro rata
forfeiture of credits -- Extensions -- Notice requirements for department.
(1)
(2)
No certificated air carrier shall claim any tax credit pursuant to KRS 144.110 to
144.130 until its entitlement thereto is first determined by the Department of
Revenue. Upon application to the department, a certificated air carrier desiring
to claim a tax credit pursuant to KRS 144.110 to 144.130 shall present
documentation as may reasonably be required by the department to define the
fundamental project scope and verify the required investment, the increased
capacity which is to result from the investment, and the anticipated project
completion date. Documentation may include the carrier's contractual
obligations, its corporation board resolutions or stockholder reports, airport
board resolutions or actions, related financial transactions, and any other
documentation which defines or describes the fundamental project scope and
the carrier's planned investment and increased capacity. The commissioner of
the Department of Revenue shall, upon the department's review of the
documentation submitted by the carrier, make a tax credit entitlement
determination and immediately give notice thereof to the carrier. In making an
entitlement determination, the Department of Revenue shall seek whatever
third-party counsel and advice deemed appropriate to satisfy itself that the
fundamental project scope is sufficient to support at least a three hundred
million dollar ($300,000,000) investment in additional air transportation facilities
and related equipment. An entitlement granted by the commissioner of the
Department of Revenue for a certificated air carrier to claim any tax credit
pursuant to KRS 144.110 to 144.139 shall be subject to the provisions of
subsection (2) of this section.
Any certificated air carrier which is granted entitlement to claim any tax credit
pursuant to KRS 144.110 to 144.130 shall, by the anticipated project
completion date specified in the carrier's application filed pursuant to
subsection (1) of this section, but not later than the carrier's annual period
ending in 1997, demonstrate to the satisfaction of the Department of Revenue
that an investment of at least three hundred million dollars ($300,000,000) has
been made or that the carrier has completed at least ninety percent (90%) of
the fundamental project scope. An investment of three hundred million dollars
($300,000,000) or the completion of at least ninety percent (90%) of the
fundamental project scope shall constitute fulfillment of the investment
requirement. Without precluding the carrier's demonstration by other means,
completion of ninety percent (90%) of the projected increased passenger or
freight handling or loading capacity, as measured by the number of gates or
loading facilities, or completion of at least ninety percent (90%) of the total
square footage of the buildings, including the fixtures and equipment therefor,
which were to be constructed and equipped as a part of the fundamental
project scope shall demonstrate completion of at least ninety percent (90%) of
the fundamental project scope. If the carrier has not made an investment of at
least three hundred million dollars ($300,000,000) and has not completed at
least ninety percent (90%) of the fundamental project scope by the anticipated
project completion date, but not later than the carrier's annual period ending in
1997, all or a portion of the tax credit otherwise authorized pursuant to KRS
144.110 to 144.130 shall be forfeited as follows:
(3)
(4)
(5)
(6)
Fundamental Project Scope
Portion of
Completion Percentage
Credit Forfeited
At least 80%, but less than 90%
25%
At least 70%, but less than 80%
50%
Less than 70%
100%
The Department of Revenue shall be responsible for determining the extent of
the certificated air carrier's completion of the fundamental project scope. In
making the determination, the department shall consult with the certificated air
carrier, the affected airport board and, if deemed necessary, with other
persons.
Subject to the provisions of KRS 131.110, notwithstanding the provisions of
KRS 136.076, 139.620, 141.210, 413.120, or any other provision of the
Kentucky Revised Statutes limiting the time for assessing taxes, the
Department of Revenue shall assess against the carrier the amount of any tax
credit previously claimed which is forfeited pursuant to subsection (2) of this
section. Interest at the tax interest rate as defined in KRS 131.010(6) shall
apply to the forfeited tax credit amount from the date the credit was claimed
until reimbursement is made to the Commonwealth. The carrier shall be
allowed to claim in any applicable subsequent annual periods only that portion
of the credit otherwise authorized pursuant to KRS 144.110 to 144.130 which
has not been forfeited as provided in this section.
The dates set forth in subsection (2) of this section may be extended by the
commissioner of the Department of Revenue, upon request by the carrier, by
an amount of time equal to any delay caused by circumstances reasonably
beyond the carrier's control which prevent the carrier from completing the
project by the anticipated project completion date, including construction delays
and delays resulting from the carrier's compliance with applicable federal,
state, or local laws, rules and regulations, or an order or judgment of a court or
administrative agency. They may also be extended by the commissioner of the
Department of Revenue upon the carrier's showing of any other good cause.
The Governor and the Legislative Research Commission shall be immediately
notified of any extension granted pursuant to this subsection and the reason for
granting the same.
Upon the making of an initial tax credit entitlement determination pursuant to
subsection (1) of this section, the Department of Revenue shall immediately
give written notification to the Governor and the Legislative Research
Commission and shall include a description of the fundamental project scope
and a summary of the estimated costs. Upon making a final determination as
provided in subsections (2) and (3) of this section, the Department of Revenue
shall immediately give written notification to the Governor and the Legislative
Research Commission of the extent to which the fundamental project scope
was completed. Such notification shall include a summary of the total costs
expended for the completed project and a description of any changes to or
deviations from the fundamental project scope.
Effective:June 20, 2005
History: Amended 2005 Ky. Acts ch. 85, sec. 557, effective June 20, 2005. -Created 1991 (1st Extra. Sess.) Ky. Acts ch. 7, sec. 5, effective May 24, 1991.
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