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154.34.110 Purpose of subchapter -- Expenditure and employment retention requirements for recovery of costs and tax incentives -- Legislative findings.

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154.34-110 Purpose of subchapter -- Expenditure and employment retention requirements for recovery of costs and tax incentives -- Legislative findings. (1) The purpose of this subchapter is to provide a means for the Commonwealth to promote job retention by providing incentives for existing businesses to reinvest in <br>existing manufacturing operations in Kentucky. (2) (a) To qualify for the incentives provided in this subchapter, an approved company shall: <br>1. Incur eligible equipment and related costs of at least two million five <br>hundred thousand dollars (&#36;2,500,000); 2. Agree to maintain a full-time employment base of at least eighty-five <br>percent (85%) at the facility on the date of preliminary approval; and 3. Not have been awarded incentives under Subchapter 26 of this chapter <br>for a period of at least five (5) years prior to applying for incentives <br>under this subchapter. (b) An approved company meeting the expenditure and employment retention requirements established by this subsection shall be eligible to recover up to <br>fifty percent (50%) of the amount expended for eligible equipment and related <br>costs, and up to one hundred percent (100%) of job skills upgrade training <br>costs. The actual amount that an approved company may recover shall be <br>negotiated with the authority, and may be less than the maximum amount for <br>which the approved company is eligible. (3) An approved company shall be eligible for tax incentives of up to one hundred percent (100%) of the Kentucky income tax imposed under KRS 141.020 or <br>141.040 and the limited liability entity tax imposed under KRS 141.0401 on the <br>income, Kentucky gross profits, or Kentucky gross receipts of the approved <br>company generated by or arising from the eligible project, as set forth in KRS <br>154.34-120. (4) The General Assembly finds and declares that: (a) The general welfare and material well-being of the citizens of the Commonwealth depend in large measure upon the reinvestment and <br>development of existing industry in the Commonwealth; (b) It is in the best interest of the Commonwealth to induce reinvestment in existing manufacturing facilities within the Commonwealth in order to <br>advance the public purposes of relieving unemployment by preserving jobs <br>that may be lost if not for the incentives to be offered by the authority to <br>approved companies, and by preserving and creating sources of tax revenues <br>for the support of public services provided by the Commonwealth; and (c) The authority prescribed by this subchapter and the purposes to be accomplished under this subchapter are proper governmental and public <br>purposes for which public moneys may be expended. Effective: June 26, 2009 <br>History: Created 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 2, effective June 26, 2009. 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), &quot;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&quot;; 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, &quot;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.&quot;