Kentucky
General Assembly

02/13/26	introduced in Senate to Committee on Committees (S)
02/17/26	to Economic Development, Tourism, & Labor (S)
02/26/26	reported favorably, 1st reading, to Calendar with Committee Substitute (1) and Committee Amendment (1-title)
02/27/26	2nd reading, to Rules
03/03/26	floor amendment (1) filed to Committee Substitute
03/04/26	posted for passage in the Regular Orders of the Day for Thursday, March 05 2026
03/05/26	passed over and retained in the Orders of the Day floor amendment (2) filed to Committee Substitute
03/06/26	3rd reading, passed 36-0 with Committee Substitute (1), Floor Amendments (2) and (1) and Committee Amendment (1-title)

Amendment	Senate Committee Substitute 1
Summary	Create a new section of KRS Chapter 141 to create a refundable economic development credit for the Kentucky Product Development Initiative and the Kentucky Business Investment Program subject to the approval of the Kentucky Economic Development Finance Authority; amend KRS 141.0205 to add the refundable economic development credit to the priority of tax credits taken by a taxpayer; create a new section of Subchapter 12 of KRS Chapter 154 to create the heritage community revolving fund to provide financial assistance to support New Markets Development Program Tax Credit applications to be administered by the Cabinet for Economic Development and subject to the approval of the Kentucky Economic Development Finance Authority; amend KRS 154.12-204 to add the definition of "heritage county" and amend the definition of "minimum base hourly wage" from 150% to 200% for a company in a heritage county and to 300% for a company in any other county; amend KRS 154.12-207 to change the Bluegrass State Skills Corporation's occupational upgrade training or skills upgrade training credit amount not to exceed $5,000 per trainee for an approved company in a heritage county and $4,000 per trainee for an approved company in any other county and to change the 1 year to 3 year limit on completing training from the date of approval by the Bluegrass State Skills Corporation; amend KRS 154.21-015 to add the definition of "heritage county"; amend KRS 154.21-017 to increase maximum funding available to $2,500,000 for an approved project in a heritage county under the Kentucky Product Development Initiative; amend KRS 154.21-035 to include propane in the assessment of adequate utilities; amend KRS 154.25-010 to change definition of "eligible company" to include a minimum of 250 full-time persons for a project located in a heritage county and add the definition of "heritage county" under the Kentucky Jobs Retention Act; amend KRS 154.25-030 to allow an extension of the 10 year time period if less than 75% of the incentives will be claimed under the term of the agreement and to provide a refundable tax credit based on a tiering system ranking all of Kentucky's counties into 4 tiers; amend KRS 154.25-040 to add new reporting requirements for the Department of Revenue to the Cabinet for Economic Development and for the cabinet to annually report to the Governor and the Legislative Research Commission on the economic development wage credits received; amend KRS 154.25-050 to conform; amend KRS 154.32-010 to add heritage county", amend "start-up costs" to include certain software and "wage target" from 125% to 200% for a company in a heritage county and from 150% to 300% for a company in any other county under the Kentucky Business Incentives program; amend KRS 154.32-020 to increase the percentage of federal minimum wage paid to 90% of new full-time employees from 125% to 200% in heritage counties and from 150% to 300% in other counties and to provide a refundable economic development credit based on a tiering system ranking all of Kentucky's counties into 4 tiers; amend KRS 154.32-030 to allow recovery of eligible costs incurred 90 days prior to receiving preliminary approval; amend KRS 154.32-040 to allow a one-time extension for projects approved prior to January 1, 2023, if approved company has received less than 75% of the incentives under the agreement but no more than maximum amount of incentives under the agreement; amend KRS 154.32-050 to create a 4 tier ranking system for all Kentucky counties based on a 5 year average of a county's unemployment rate and population ranking under the Kentucky Product Development Initiative; amend KRS 154.32-070 to provide a refundable economic development credit based on a tiering system ranking all of Kentucky's counties into 4 tiers; amend KRS 154.32-100 to add new reporting requirements for the Department of Revenue to the Cabinet for Economic Development and for the cabinet to annually report to the Governor and the Legislative Research Commission on the refundable economic development credits received; amend KRS 154.12-100 to include regional airports that serve the Commonwealth; amend KRS 131.190, 141.383, 148.851, 148.853, 154.20-230, 154.20-236, 154.32-090, 154.34-010, 154.61-010, 154.61-020, and 164.6021 to conform; encourage the Cabinet for Economic Development to conduct an impact and feasibility study and, if completed to be submit it to the Interim Joint Committee on Economic Development and Workforce Investment by December 1, 2028; EMERGENCY.
Index Headings	Economic Development - Kentucky economic development incentive programs, tiered county system, establishment Effective Dates, Emergency - Kentucky economic development incentive programs, tiered county system, establishment Funds - Heritage community revolving fund, Kentucky Economic Development Finance Authority Local Government - Kentucky economic development incentive programs, tiered county system, establishment Small Business - Kentucky economic development incentive programs, tiered county system, establishment State Agencies - Cabinet for Economic Development, Kentucky economic incentive programs, tiered county system Taxation - Kentucky economic development refundable credit program, tiered county system, establishment Taxation, Income--Corporate - Kentucky economic development refundable credit program, tiered county system, establishment

Amendment	Senate Committee Amendment 1
Sponsor	P. Wheeler
Summary	Make title amendment.
Index Headings	Title Amendments - SB 197

Amendment	Senate Floor Amendment 1
Sponsor	P. Wheeler
Summary	Retain original provisions; amend the definition of "eligible company" in KRS 154.32-010, Kentucky Business Investment Program, to include research and development companies or out of state companies involved in economic development projects near Tier IV counties, with another state that has reciprocal provisions with Kentucky, with a minimum 250 full-time jobs, and meets other criteria as the Kentucky Economic Development Finance Authority may require.
Index Headings	Economic Development - Kentucky Business Incentives Program, eligible company, definition Local Government - Kentucky Business Incentives Program, eligible company, definition State Agencies - Cabinet for Economic Development, Kentucky Business Incentives Program Taxation - Kentucky Business Incentives Program, eligible company, definition Taxation, Income--Corporate - Kentucky Business Incentives Program, eligible company, definition

Amendment	Senate Floor Amendment 2
Sponsor	P. Wheeler
Summary	Retain original provisions; amend provisions to make technical corrections.
Index Headings	Small Business - Kentucky economic development incentive programs, tiered county system, establishment State Agencies - Cabinet for Economic Development, Kentucky economic incentive programs, tiered county system Local Government - Kentucky economic development incentive programs, tiered county system, establishment Taxation - Kentucky economic development refundable credit program, tiered county system, establishment Taxation, Income--Corporate - Kentucky economic development refundable credit program, tiered county system, establishment Economic Development - Kentucky economic development incentive programs, tiered county system, establishment Funds - Heritage community revolving fund, Kentucky Economic Development Finance Authority