307 KAR 4:020. Kentucky Enterprise Initiative Act.

      RELATES TO: KRS 154.20-033(2)

      STATUTORY AUTHORITY: KRS 154.20-033(2), 154.20-200

      NECESSITY, FUNCTION AND CONFORMITY: KRS 154.20-202(1). requires that the Kentucky Economic Development Finance Authority promulgate administrative regulations for approving eligible companies pursuant to the Kentucky Enterprise Initiative Act, KRS 154.20-200 - 154.20-216. This administrative regulation establishes the approval process.

      Section 1. Definitions. (1) "Act" means KRS 154.20-200 - 216.

      (2) "Authority" is defined in KRS 154.20-200(5).

      (3) "Building and construction materials" means all of the tangible personal property, other than fixtures, that becomes physically incorporated as a permanent part of the structure or is consumed or expended in the construction. Examples of materials are: bricks, builders hardware, cement, gravel, sand, macadam, asphalt, lumber, electrical wiring, wall board and coping, roofing, guttering, aluminum siding, storm doors and windows, and cabinets.

      (4) "Building fixtures" means items that are attached to, or incorporated into, a building without becoming a structural component of the building. Examples of fixtures are: lighting fixtures, plumbing fixtures, hot water heaters, furnaces, boilers, central heating units, elevators, hoists, burglar and fire alarm systems, central air conditioning, built-in refrigeration units, built-in oven-ranges and dishwashers, and cabinets.

      Section 2. Application Process. (1) In addition to the information required by KRS 154.20-202(3), a company seeking approval for inducements under the Act shall submit an application to the Authority that contains the following information:

      (a) An executed original of the Cabinet for Economic Development Economic Incentive Disclosure Statement;

      (b) A copy of the company’s financial statement for the most current fiscal year end;

      (c) A brief description of the economic development project;

      (d) An executed original of the Application for the Kentucky Enterprise Initiative Act;

      (e) A letter of support from the local county or municipal government; and

      (f) A nonrefundable $500 application fee.

      (2) The Authority may require from the applicant additional information that is necessary to evaluate the application.

      Section 3. Approval. (1) The Authority shall review the application and determine whether or not to approve the application. The final determination shall be made at a regular or special session of the Authority.

      (2) Prior to approval, the Authority and the approved company shall negotiate the terms and conditions of the inducements and enter into a written agreement setting forth their agreement, in accordance with KRS 154.20-210.

      (3) The Authority shall consider the applications in the order received and shall cease consideration of applications after the statutory total tax refund incentive available for commitment for the fiscal year has been reached.

      (4) Applications which have not been acted upon by the Authority, received or on file after the statutory total tax refund incentive available for commitment for the fiscal year has been reached, shall be returned to the applicants.

      Section 4. Incorporation by Reference. (1) The following material is incorporated by reference:

      (a) The "Application for Kentucky Enterprise Initiative Act Tax Credit Program (2/06)"; and

      (b) The "Cabinet for Economic Development Economic Incentive Disclosure Statement (07/02) ".

      (2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Cabinet for Economic Development, Department of Financial Incentives, Old Capital Annex, 3rd Floor, 300 West Broadway, Frankfort, Kentucky 40601, ((502) 564-7670) Monday through Friday, 8 a.m. to 4:30 p.m. (32 Ky.R. 1496; 1884; eff. 5-5-2006.)