154.24.010 Definitions for KRS 154.24-010 to 154.24-150.
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<![CDATA[154.24-010 Definitions for KRS 154.24-010 to 154.24-150. The following words and terms, unless the context clearly indicates a different meaning, <br>shall have the following respective meanings in KRS 154.24-010 to 154.24-150: <br>(1) "Affiliate" has the same meaning as in KRS 154.22-010; <br>(2) "Agreement" means the service and technology agreement made pursuant to KRS 154.24-120, between the authority and an approved company with respect to an <br>economic development project; (3) "Approved company" means any eligible company seeking to locate an economic development project from outside the Commonwealth into the Commonwealth, or <br>undertaking an economic development project in the Commonwealth for which it is <br>approved pursuant to KRS 154.24-100; (4) "Approved costs" means fifty percent (50%) of the total of the start-up costs up to a maximum of ten thousand dollars ($10,000) per new full-time job created and to be <br>held by a Kentucky resident subject to the personal income tax of the <br>Commonwealth, plus fifty percent (50%) of the annual rent for each elapsed year of <br>the service and technology agreement; (5) "Assessment" means the "service and technology job creation assessment fee" authorized by KRS 154.24-110; (6) "Authority" means the Kentucky Economic Development Finance Authority, as created in KRS 154.20-010; (7) "Average hourly wage" means the wage and employment data published by the Office of Employment and Training within the Department of Workforce <br>Investment within the Education and Workforce Development Cabinet collectively <br>translated into wages per hour based on a two thousand eighty (2,080) hour work <br>year for the following sectors: <br>(a) Manufacturing; <br>(b) Transportation, communications, and public utilities; <br>(c) Wholesale and retail trade; <br>(d) Finance, insurance, and real estate; and <br>(e) Services; (8) "Commonwealth" means the Commonwealth of Kentucky; <br>(9) "Economic development project" or "project" means a new or expanded service or technology activity conducted at a new or expanded site by: <br>(a) An approved company; or <br>(b) An approved company and its affiliate or affiliates; (10) "Eligible company" means any corporation, limited liability company, partnership, limited partnership, sole proprietorship, business trust, or any other entity engaged <br>in service or technology and meeting the standards promulgated by the authority in <br>accordance with KRS Chapter 13A; (11) "Employee benefits" means nonmandated costs paid by an approved company for its full-time employees for health insurance, life insurance, dental insurance, vision <br>insurance, defined benefits, 401(k) or similar plans; (12) "Final approval" means the action taken by the authority authorizing the eligible company to receive inducements under this subchapter; (13) "Full-time employee" means a person employed by an approved company for a minimum of thirty-five (35) hours per week and subject to the state tax imposed by <br>KRS 141.020; (14) "In lieu of credits" means a local government appropriation to the extent permitted by law, or other form of local government grant or service benefit, directly related <br>to the economic development project and in an amount equal to one percent (1%) of <br>employees' gross wages, exclusive of any noncash benefits provided to an <br>employee, or the provision by a local government of an in-kind contribution directly <br>related to the economic development project and in an amount equal to one half <br>(1/2) of the rent for the duration of the agreement; (15) "Inducements" means the tax credits allowed and the assessment authorized by KRS 154.24-110, which are intended to induce companies engaged in service and <br>technology industries to locate or expand in the Commonwealth; (16) "Person" means an individual, sole proprietorship, partnership, limited partnership, joint venture, trust, unincorporated organization, association, corporation, limited <br>liability company, institution, entity or government, whether federal, state, county, <br>city, or otherwise, including without limitation any instrumentality, division, <br>political subdivision, district, court, agency, or department thereof; (17) "Preliminary approval" means the action taken by the authority conditioning final approval by the authority upon satisfaction by the eligible company of the <br>requirements under this subchapter; (18) "Rent" means: (a) The actual annual rent or leasing fee paid by an approved company to a bona fide entity negotiated at arms length for the use of a building by the approved <br>company to conduct the approved activity for which the inducement has been <br>granted; or (b) The fair rental value on an annual basis in a building owned by the approved company of the space used by the approved company to conduct the approved <br>activity for which the inducement has been granted as determined by the <br>authority using criteria which is customary in the real estate industry for the <br>type of building being used. The fair rental value shall include an analysis of <br>the cost of amortizing the cost of land and building over the period of time <br>customary in the real estate industry for the type of building and for the land <br>being utilized; (c) Rent shall include the customary cost of occupancy, including but not limited to property taxes, heating and air-conditioning, electricity, water, sewer, and <br>insurance; (19) (a) "Service or technology" means either: 1. Any activity involving the performance of work, except work classified <br>by the divisions, including successor divisions, of agriculture, forestry <br>and fishing, mining, utilities, construction, manufacturing, wholesale <br>trade, retail trade, real estate rental and leasing, educational services, <br>accommodation and food services, and public administration in <br>accordance with the "North American Industry Classification System," <br>as revised by the United States Office of Management and Budget from <br>time to time, or any successor publication; or 2. Regional or headquarters operations of an entity engaged in an activity <br>listed in subparagraph 1. of this paragraph. (b) Notwithstanding paragraph (a) of this subsection, "service or technology" shall not include any activity involving the performance of work by an <br>individual who is providing direct service to the public pursuant to a license <br>issued by the state or an association that licenses in lieu of the state unless <br>seventy-five percent (75%) of the services provided by the eligible company <br>from the project are provided to persons located outside the Commonwealth <br>during the period in which it receives the inducements authorized in KRS <br>154.24-110; and (20) "Start-up costs" means the acquisition cost associated with the project related to the furnishing and equipping the building for ordinary business functions, including <br>computers, furnishings, office equipment, the relocation of out-of-state equipment, <br>and nonrecurring costs of fixed telecommunication equipment as verified and <br>approved by the authority in accordance with KRS 154.24-130. Effective: June 25, 2009 <br>History: Amended 2009 Ky. Acts ch. 11, sec. 41, effective June 25, 2009. -- Amended 2008 Ky. Acts ch. 50, sec. 1, effective April 10, 2008. -- Amended 2006 (1st Extra. <br>Sess.) Ky. Acts ch. 2, sec. 51, effective June 28, 2006. -- Amended 2006 Ky. Acts <br>ch. 149, sec. 218, effective July 12, 2006; and ch. 211, sec. 73, effective July 12, <br>2006. -- Amended 2004 Ky. Acts ch. 105, sec. 10, effective July 13, 2004. -- <br>Amended 2002 Ky. Acts ch. 338, sec. 32, effective July 15, 2002. -- Amended 1996 <br>Ky. Acts ch. 194, sec. 36, effective July 15, 1996. -- Amended 1994 Ky. Acts <br>ch. 450, sec. 11, effective July 15, 1994; and ch. 499, sec. 21, effective July 15, <br>1994. </p>
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