Kentucky Statutes 154.31-020 – Annual incentive cap established — Requirements for qualification for incentives — Maximum incentives available to an approved company
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(1) The maximum amount of sales and use tax incentives that may be committed in each fiscal year by the authority shall be capped at twenty million dollars ($20,000,000) for building and construction materials, and five million dollars ($5,000,000) for equipment used for research and development, electronic processing, or flight simulation.
(2) (a) To qualify for the sales and use tax incentives available under this subchapter, an eligible company shall make a minimum investment of at least five hundred thousand dollars ($500,000) in an economic development project, including the cost of land, but excluding the cost of labor.
(b) To qualify for the sales and use tax incentive available under this subchapter for electronic processing equipment, in addition to the requirements of paragraph (a) of this subsection, the eligible company shall spend an aggregate amount of at least fifty thousand dollars ($50,000) on electronic processing equipment installed as part of the economic development project.
(3) (a) The maximum sales and use tax incentive available to an approved company under this subchapter is the total amount of sales and use tax paid on purchases made on the following items, up to the approved recovery amount after approval by the authority:
1. Building and construction materials;
2. Research and development equipment;
3. Electronic processing equipment; and
4. Flight simulation equipment.
(b) An approved company may qualify for a sales and use tax incentive in more than one (1) category listed in paragraph (a) of this subsection for the same economic development project. If the authority approves an eligible company to receive the sales and use tax incentives in more than one (1) category, the authority shall allocate the incentives to the appropriate cap established by subsection (1) of this section.
Effective: July 14, 2018
History: Amended 2018 Ky. Acts ch. 199, sec. 31, effective July 14, 2018. — Created
2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 21, effective June 26, 2009.
(2) (a) To qualify for the sales and use tax incentives available under this subchapter, an eligible company shall make a minimum investment of at least five hundred thousand dollars ($500,000) in an economic development project, including the cost of land, but excluding the cost of labor.
Terms Used In Kentucky Statutes 154.31-020
- Approved company: means an eligible company that has received approval from the authority for a sales and use tax incentive under this subchapter. See Kentucky Statutes 154.31-010
- Authority: means the Kentucky Economic Development Finance Authority. See Kentucky Statutes 154.31-010
- Company: may extend and be applied to any corporation, company, person, partnership, joint stock company, or association. See Kentucky Statutes 446.010
- Economic development project: means :
(a) 1. See Kentucky Statutes 154.31-010 - Electronic processing: means the use of technology having electronic, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities, now in existence or later developed to perform a service or technology activity. See Kentucky Statutes 154.31-010
- Eligible company: means any corporation, limited liability company, partnership, limited partnership, sole proprietorship, business trust, or other legal entity with a proposed economic development project that is primarily engaged in or planning to be engaged in one (1) or more of the following activities within the Commonwealth:
1. See Kentucky Statutes 154.31-010 - Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Project: includes but is not limited to agribusiness, agricultural or forestry production, harvesting, storage, or processing facilities or equipment. See Kentucky Statutes 154.1-010
- Research and development: means experimental or laboratory activity that has as its ultimate goal the development of new products, the improvement of existing products, the development of new uses for existing products, or the development or improvement of methods for producing products. See Kentucky Statutes 154.31-010
(b) To qualify for the sales and use tax incentive available under this subchapter for electronic processing equipment, in addition to the requirements of paragraph (a) of this subsection, the eligible company shall spend an aggregate amount of at least fifty thousand dollars ($50,000) on electronic processing equipment installed as part of the economic development project.
(3) (a) The maximum sales and use tax incentive available to an approved company under this subchapter is the total amount of sales and use tax paid on purchases made on the following items, up to the approved recovery amount after approval by the authority:
1. Building and construction materials;
2. Research and development equipment;
3. Electronic processing equipment; and
4. Flight simulation equipment.
(b) An approved company may qualify for a sales and use tax incentive in more than one (1) category listed in paragraph (a) of this subsection for the same economic development project. If the authority approves an eligible company to receive the sales and use tax incentives in more than one (1) category, the authority shall allocate the incentives to the appropriate cap established by subsection (1) of this section.
Effective: July 14, 2018
History: Amended 2018 Ky. Acts ch. 199, sec. 31, effective July 14, 2018. — Created
2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 21, effective June 26, 2009.