summary
Introduced
02/13/2026
02/13/2026
In Committee
02/17/2026
02/17/2026
Crossed Over
Passed
Dead
Introduced Session
2026 Regular Session
Bill Summary
Create a new section of Subchapter 32 of KRS Chapter 154 to establish a tiered county system for eligible companies to receive incentives under the Kentucky Business Investment Program; amends KRS 154.32-010 to define "tier"; amends KRS 154.32-020 and 154.32-040 to conform; amend KRS 154.32-050 to specify tiering procedures; amend KRS 154.32-060 to require the Kentucky Economic Development Finance Authority to identify and certify or decertify the tiers for all counties on an annual basis into 4 tax credit tiers; provide that the incentives available under this subchapter be determined based on the county where the economic development project is located by an approved company; provide a county's tier will be based on a 5 year average of its unemployment rate and population ranking; amend KRS 154.32-090, 154.61-010, 154.61-020, and 141.383 to conform.
AI Summary
This bill establishes a tiered county system for companies seeking economic development incentives under the Kentucky Business Investment Program, replacing the previous "enhanced incentive county" designation. The Kentucky Economic Development Finance Authority (KEDFA) will now annually categorize all counties into four tiers (Tier I, II, III, and IV) based on a five-year average of each county's unemployment rate and its population ranking. The specific tax credit amounts available per new job created will vary depending on the tier of the county where the project is located, with higher tiers offering greater incentives. For instance, Tier I counties offer $2,500 per new job, while Tier IV counties offer $20,000 per new job. The bill also modifies job creation requirements for companies, requiring fewer new jobs in Tier III and IV counties compared to Tier I and II counties, and adjusts wage assessment rules for companies located in different tiers. Additionally, it makes conforming amendments to various sections of Kentucky Revised Statutes (KRS) related to economic development, definitions, and tax credits, including those for the film industry, which will now also be subject to the new tiered county system.
Committee Categories
Business and Industry
Sponsors (2)
Last Action
to Economic Development, Tourism, & Labor (S) (on 02/17/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://apps.legislature.ky.gov/record/26RS/sb197.html |
| BillText | https://apps.legislature.ky.gov/recorddocuments/bill/26RS/sb197/orig_bill.pdf |
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