| Last Action | 03/10/26: 3rd reading, passed 93-0 with Committee Substitute (1) |
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| Title | AN ACT relating to economic development, making an appropriation therefor, and declaring an emergency. |
| Bill Documents |
Current
Introduced |
| Bill Request Number | 469 |
| Sponsors | A. Bowling, J. Petrie |
| Summary of Original Version | Create a new section of Subchapter 20 of KRS Chapter 154 to establish the rural building and job creation revolving fund; specify uses of the fund to assist with compliance risk mitigation for the New Markets Tax Credits Program, or to issue low-interest loans to assist with construction of new buildings or renovations of existing buildings for lease to target wage economic development projects; require the Cabinet for Economic Development to report on the fund; create a new section of Subchapter 12 of KRS Chapter 154 to require the cabinet to work with the workforce liaison appointed by the president of the Kentucky Career and Technical College System to promote jobs created in the Commonwealth as a result of incentive programs; require the cabinet to conduct a feasibility and impact study on interstate reciprocity between state economic development programming; amend the general fund appropriation authorized in 2022 Ky. Acts ch. 199, Part I, B, 1.,(12) to not lapse and carry forward; APPROPRIATION; EMERGENCY. |
| Index Headings of Original Version |
Economic Development - Rural building and job creation revolving fund, establishment Economic Development - Interstate reciprocity, state economic development programming, study Economic Development - Workforce liaison, KCTCS and Cabinet for Economic Development collaboration Funds - Rural building and job creation revolving fund, establishment Studies Directed - Center for Economic and Entrepreneurial Development at Murray State University, collaboration Appropriations - Rural building and job creation revolving fund, establishment Effective Dates, Emergency - Rural building and job creation revolving fund, establishment Reports Mandated - Center for Economic and Entrepreneurial Development at Murray State University, collaboration |
| Jump to Proposed Amendments | House Committee Substitute 1 |
| Votes | Vote History |
| 03/03/26 |
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| 03/04/26 |
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| 03/05/26 |
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| 03/10/26 |
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| Amendment | House Committee Substitute 1 |
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| Summary | Retain original provisions, except remove the rural building and job creation revolving fund and related uses of the fund for the New Markets Tax Credits Program; create a new section of KRS Chapter 141 to define "approved company," "authority," and "credit"; create a refundable economic development credit against taxes imposed under KRS 141.020 or 141.040 and 141.0401; set requirements for the Department of Revenue to administer the credit; require the Department of Revenue to report to the Kentucky Economic Development Finance Authority on the credit; prohibit the information reported to be considered confidential; amend KRS 141.0205 to order the credit; amend KRS 131.190 to allow the Department of Revenue to report on the credit; amend KRS 154.12-204 to include the cost of equipment in approved costs; define "heritage county"; increase the minimum base hourly wage amount for the Bluegrass State Skills Program; amend KRS 154.12-207 to increase the skills training investment credit cap; create a separate skills training investment credit cap for trainees located in a heritage county; increase the timeframe that an approved company has to complete training programs under a Bluegrass State Skills Program; amend KRS 154.21-015 to define "heritage county"; amend KRS 154.21-017 to set a higher grant funding cap for approved projects located in a heritage county under the Kentucky Product Development Initiative Program; amend KRS 154.21-035 to include propane in the list of required utilities for a property that an eligible project occupies or is proposed to occupy under the Kentucky Product Development Initiative Program; amend KRS 154.25-010 to define "heritage county"; set a lower threshold for required jobs and eligible costs for projects located in a heritage county under the Kentucky Jobs Retention Act Program; amend KRS 154.25-030 to allow the extension of a tax incentive agreement for a jobs retention project when an approved company demonstrates that less than 75% of the incentives awarded will be claimed during the term of the agreement; allow a refundable credit of up to 1.5% of the wages paid to full-time employees maintained at a jobs retention project located in a heritage county; set a cap for the total refundable credits awarded to all approved companies under the Kentucky Jobs Retention Act Program and the Kentucky Business Investment Program at $2,000,000 per taxable year; amend KRS 154.25-040 to require reporting by the Department of Revenue and the Cabinet for Economic Development on the refundable credits claimed under the Kentucky Jobs Retention Act Program; amend KRS 154.32-010 to include research and development as an eligible company for the Kentucky Business Investment Program; expand the types of start-up costs and lease agreements allowed for economic development projects under the Kentucky Business Investment Program; define "heritage county"; increase the wage target thresholds and set a separate threshold for jobs located in a heritage county; amend KRS 154.32-020 to increase the required minimum pay for jobs created as a result of the economic development project under the Kentucky Business Investment Program; amend KRS 154.32-030 to allow the recovery of eligible costs incurred 90 days prior to receipt of preliminary approval for an economic development project under the Kentucky Business Investment Program; amend KRS 154.32-040 to allow a one-time extension for approved companies that received preliminary approval of an economic development project prior to January 1, 2023 under the Kentucky Business Investment Program; set requirements for the extension; amend KRS 154.32-070 to allow a refundable credit of up to 1.5% of the wages paid to full-time employees maintained at an economic development project located in a heritage county under the Kentucky Business Investment Program; set a cap for the total refundable credits awarded to all approved companies under the Kentucky Jobs Retention Act Program and the Kentucky Business Investment Program at $2,000,000 per taxable year; amend KRS 154.32-100 to require reporting by the Department of Revenue and the Cabient for Economic Development on the refundable credits claimed under the Kentucky Business Investment Program; amend various other sections to conform; repeal KRS 154.32-050, relating to certifcation of enhanced incentive counties; EMERGENCY. |
| Index Headings |
Counties - Heritage county designation, county ranking Economic Development - Jobs retention project, eligible costs incurred, heritage county location Economic Development - Kentucky Business Investment Program, expansion of eligible companies and wage target thresholds Economic Development - Kentucky Product Development Initiative, maximum funding available, heritage county designation Economic Development - Refundable economic development credit, income tax Effective Dates, Emergency - Economic development, heritage counties Reports Mandated - Cabinet for Economic Development, refundable economic development credit Reports Mandated - Department of Revenue, refundable economic development credit Taxation - Income tax, refundable economic development credit Taxation - Income tax, skills training investment credit, modifications Taxation, Income--Corporate - Economic development credit, refundable Taxation, Income--Individual - Refundable economic development credit, creation Wages And Hours - Wage requirements, certain economic development projects Workforce - Minimum base hourly wage requirements, economic development project purposes Workforce - Minimum number of full-time employees, heritage county designation, economic development incentives Workforce - Skills training investment credit, increase in credit amount per trainee |
Last updated: 3/10/2026 6:13 PM (EDT)