(Louisville Business First) - Tax incentives for the sake of economic development have become an increasingly controversial topic across the country in the wake of Amazon.com Inc.'s HQ2 bidding war.
And in the midst of that attention, Kentucky is reviewing the efficacy of a few of its incentive programs.
The Kentucky Economic Development Cabinet is collecting data for this review, said Joe Lilly, executive director of the office of public affairs at the Kentucky Cabinet for Economic Development.
Among the programs being reviewed:
The Kentucky Business Investment program, which provides income tax credits and wage assessments to new and existing agribusinesses, regional and national headquarters, manufacturing companies and non-retail service or technology related companies that locate or expand operations in Kentucky.
The Kentucky Enterprise Initiative Act, which provides a refund of Kentucky sales and use tax paid by approved companies for building and construction materials permanently incorporated as an improvement to real property. The program incentivizes new or expanded service or technology, manufacturing or tourism attraction projects in Kentucky.
The Kentucky Economic Development Authority approves incentives from both of these programs at its monthly meetings. The tax breaks a company receives are based on their investment costs and job creation levels. We frequently report on projects that receive preliminary approval for such incentives.
With its review, Lilly said, the cabinet is going through records as well as working with incentive recipients for updates on investments and job creation numbers.
Louisville Business First