154.48.010 Definitions for KRS 154.48-010 to 154.48-035.

Statutes > Kentucky Statutes > Subchapter 48 Environmental Stewardship > 154.48.010 Definitions for KRS 154.48-010 to 154.48-035.

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154.48-010 Definitions for KRS 154.48-010 to 154.48-035. As used in KRS 154.48-010 to 154.48-035, unless the context clearly indicates otherwise: (1) "Activation date" means a date selected by an approved company in the tax incentive agreement at any time within a two (2) year period after the date of final approval of the tax incentive agreement by the authority; (2) "Affiliate" means the following: (a) Members of a family, including only brothers and sisters of the whole or half blood, spouse, ancestors, and lineal descendants of an individual; (b) An individual, and a corporation more than fifty percent (50%) in value of the outstanding stock of which is owned, directly or indirectly, by or for that individual; (c) An individual, and a limited liability company of which more than fifty percent (50%) of the capital interest or profits are owned or controlled, directly or indirectly, by or for that individual; (d) Two (2) corporations which are members of the same controlled group, which includes and is limited to: 1. One (1) or more chains of corporations connected through stock ownership with a common parent corporation if: a. Stock possessing more than fifty percent (50%) of the total combined voting power of all classes of stock entitled to vote or more than fifty percent (50%) of the total value of shares of all classes of stock of each of the corporations, except the common parent corporation, is owned by one (1) or more of the other corporations; and b. The common parent corporation owns stock possessing more than fifty percent (50%) of the total combined voting power of all classes of stock entitled to vote or more than fifty percent (50%) of the total value of shares of all classes of stock of at least one (1) of the other corporations, excluding, in computing the voting power or value, stock owned directly by the other corporations; or 2. Two (2) or more corporations if five (5) or fewer persons who are individuals, estates, or trusts own stock possessing more than fifty percent (50%) of the total combined voting power of all classes of stock entitled to vote or more than fifty percent (50%) of the total value of shares of all classes of stock of each corporation, taking into account the stock ownership of each person only to the extent the stock ownership is identical with respect to each corporation; (e) A grantor and a fiduciary of any trust; (f) A fiduciary of a trust and a fiduciary of another trust, if the same person is a grantor of both trusts; (g) A fiduciary of a trust and a beneficiary of that trust; (h) A fiduciary of a trust and a beneficiary of another trust, if the same person is a grantor of both trusts; (i) A fiduciary of a trust and a corporation more than fifty percent (50%) in value of the outstanding stock of which is owned, directly or indirectly, by or for the trust or by or for a person who is a grantor of the trust; (j) A fiduciary of a trust and a limited liability company more than fifty percent (50%) of the capital interest, or the interest in profits, of which is owned directly or indirectly, by or for the trust or by or for a person who is a grantor of the trust; (k) A corporation, a partnership, or a limited partnership if the same persons own: 1. More than fifty percent (50%) in value of the outstanding stock of the corporation; and 2. More than fifty percent (50%) of the capital interest, or the profits interest, in the partnership or limited partnership; (l) A corporation and a limited liability company if the same persons own: 1. More than fifty percent (50%) in value of the outstanding stock of the corporation; and 2. More than fifty percent (50%) of the capital interest or the profits in the limited liability company; (m) A partnership or limited partnership and a limited liability company if the same persons own: 1. More than fifty percent (50%) of the capital interest or profits in the partnership or limited partnership; and 2. More than fifty percent (50%) of the capital interest or the profits in the limited liability company; (n) An S corporation and another S corporation if the same persons own more than fifty percent (50%) in value of the outstanding stock of each corporation, S corporation designation being the same as that designation under the Internal Revenue Code of 1986, as amended; or (o) An S corporation and a C corporation, if the same persons own more than fifty percent (50%) in value of the outstanding stock of each corporation; S and C corporation designations being the same as those designations under the Internal Revenue Code of 1986, as amended; (3) "Approved company" means any eligible company for which the authority has granted final approval of its application pursuant to KRS 154.48-025; (4) "Approved costs" means one hundred percent (100%) of the eligible skills upgrade training costs and up to twenty-five percent (25%) of the eligible equipment costs approved by the authority that an approved company may recover through the inducements authorized by KRS 154.48-010 to 154.48-035; (5) "Authority" means the Kentucky Economic Development Finance Authority created by KRS 154.20-010; (6) "Average hourly wage" means the wage and employment data published by the Office of Employment and Training in the Department of Workforce Investment within the Education and Workforce Development Cabinet collectively translated into wages per hour based on a two thousand eighty (2,080) hour work year for the following sectors: (a) Manufacturing; (b) Transportation, communications, and public utilities; (c) Wholesale and retail trade; (d) Finance, insurance, and real estate; and (e) Services; (7) "Commonwealth" means the Commonwealth of Kentucky; (8) "Eligible company" means any entity that undertakes an environmental stewardship project; (9) "Eligible costs" means eligible equipment costs plus eligible skills upgrade training costs expended after preliminary approval of the environmental stewardship project; (10) "Eligible equipment costs" means: (a) Obligations incurred for labor and to vendors, contractors, subcontractors, builders, suppliers, deliverymen, and materialmen in connection with the acquisition, construction, equipping, and installation of an environmental stewardship project; (b) The cost of contract bonds and of insurance of all kinds that may be required or necessary during the course of acquisition, construction, equipping, and installation of an environmental stewardship project which is not paid by the vendor, supplier, deliveryman, contractor, or otherwise provided; (c) All costs of architectural and engineering services, including estimates, plans and specifications, preliminary investigations, and supervision of construction, rehabilitation and installation, as well as for the performance of all the duties required by or consequent upon the acquisition, construction, equipping, and installation of an environmental stewardship project; (d) All costs required to be paid under the terms of any contract for the acquisition, construction, equipping, and installation of an environmental stewardship project; (e) All costs paid for by the approved company that are required for the installation of utilities, including but not limited to water, sewer, sewer treatment, gas, electricity, communications, and access to transportation, and including off-site construction of the facilities necessary for implementation of an environmental stewardship project; and (f) All other costs of a nature comparable to those described in this subsection. (11) "Eligible skills upgrade training costs" means: (a) Fees or salaries required to be paid to instructors who are employees of the approved company, instructors who are full-time, part-time, or adjunct instructors with an educational institution, and instructors who are consultants on contract with an approved company in connection with an occupational training program sponsored by an approved company for its full-time employees and specifically relating to an environmental stewardship project; (b) Administrative fees charged by educational institutions in connection with an occupational training program sponsored by an approved company for its full- time employees and specifically relating to an environmental stewardship project; (c) The cost of supplies, materials, and equipment used exclusively in an occupational training program sponsored by an approved company for its full- time employees and specifically relating to an environmental stewardship project; (d) The cost of leasing a training facility where space is unavailable at an educational institution or at the premises of an approved company in connection with an occupational training program sponsored by an approved company for its full-time employees and specifically relating to an environmental stewardship project; (e) Employee wages to be paid in connection with an occupational training program sponsored by an approved company for its full-time employees and specifically relating to an environmental stewardship project; (f) Travel expenses paid by the approved company as incurred by its full-time employees resulting directly from the costs of transportation, lodging and meals that are directly related to an occupational training program necessary for the implementation of an environmental stewardship project; and (g) All other costs of a nature comparable to those described in this subsection; (12) "Employee benefits" means nonmandated costs paid by an eligible company for its full-time employees for health insurance, life insurance, dental insurance, vision insurance, defined benefits, 401(k) or similar plans; (13) "Environmental stewardship product" means any new manufactured product or substantially improved existing manufactured product that has a lesser or reduced adverse effect on human health and the environment or provides for improvement to human health and the environment when compared with existing products or competing products that serve the same purpose. Such products may include but are not limited to those which contain recycled content, minimize waste, conserve energy or water, and reduce the amount of toxics disposed or consumed, but shall not include products that are the result of the production of energy or energy producing fuels; (14) "Environmental stewardship project" or "project" means: (a) The acquisition, construction, and installation of new equipment and, with respect thereto: 1. The construction, rehabilitation, and installation of improvements to facilities necessary to house the new equipment, including surveys; 2. Installation of utilities including water, sewer, sewage treatment, gas, electricity, communications, and similar facilities; 3. Off-site construction of utility extensions to the boundaries of the real estate on which the facilities are located; All of which are utilized by an approved company or its affiliate to manufacture an environmental stewardship product as reviewed and recommended to the authority by the Energy and Environment Cabinet; and (b) The provision of an occupational training program to provide the employees of an approved company or its affiliate with the knowledge and skills necessary to manufacture the new product; (15) "Final approval" means the action taken by the authority designating an eligible company that has previously received a preliminary approval as an approved company and authorizing the execution of an environmental stewardship agreement between the authority and the approved company; (16) "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 income tax imposed by KRS 141.020; (17) "Inducement" means the Kentucky tax credit as authorized by KRS 154.48-010 to 154.48-035; (18) "Manufacturing" means any activity involving the manufacturing, processing, assembling, or production of any property, including the processing that results in a change in the condition of the property and any related activity or function, together with the storage, warehousing, distribution, and related office facilities; (19) "Preliminary approval" means the action taken by the authority designating an eligible company as a preliminarily approved company, and conditioning final approval by the authority upon satisfaction by the eligible company of the requirements set forth in the preliminary approval; (20) "Kentucky gross receipts" means Kentucky gross receipts as defined in KRS 141.0401; and (21) "Kentucky gross profits" means Kentucky gross profits as defined in KRS 141.0401. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 207, effective July 15, 2010. -- Amended 2009 Ky. Acts ch. 11, sec. 45, effective June 25, 2009. -- Amended 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 64, effective June 28, 2006. -- Amended 2006 Ky. Acts ch. 149, sec. 222, effective July 12, 2006; and ch. 211, sec. 78, effective July 12, 2006. -- Created 2005 Ky. Acts ch. 168, sec. 143, effective March 18, 2005. 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." Legislative Research Commission Note (3/18/2005). 2005 Ky. Acts ch. 168, sec. 165, provides that this section shall apply to tax years beginning on or after January 1, 2005.

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Kentucky Codes and Statutes

154.48.010 Definitions for KRS 154.48-010 to 154.48-035.