Committee approves SB 197 to revise economic-development incentives; data-center protections included

The House Standing Committee on Appropriations and Revenue on March 26 voted to adopt a committee substitute for Senate Bill 197 and reported the bill favorably to the full House.

Sponsor Representative Adam Bowling, co-sponsoring with Senator Phillip Wheeler, said the substitute updates the Economic Development Cabinet's incentive “toolkit” to keep Kentucky competitive with peer states. “We have been engaged the last couple of weeks,” Bowling said, and the changes aim to “make sure our incentives are still in line and aligned, and that we remain competitive in the state of Kentucky.”

Committee members asked about a data-center provision and protections for local ratepayers. Representative Bojanowski asked whether the substitute incorporated the protections from House Bill 593; the sponsor responded that the substitute does include HB 593 language. The committee exchange centered on preserving ratepayer protections while maintaining competitiveness for economic development projects.

A separate line of questioning from Representative Burke sought clarification about which tax-credit programs the changes would affect. Sponsors described the measure as restoring the intended value of certain state incentives and said implementation details and program classifications remain to be resolved during subsequent drafting and floor consideration.

The committee approved the PHS 1 substitute and then voted on the amended bill by roll call. The clerk recorded 21 yes votes, zero nay votes and zero passes; the committee reported SB 197 with a favorable recommendation and adopted a title amendment by voice vote. The measure will be placed on the House floor for further action.

Provenance: This article summarizes remarks and committee action introduced at the start of the hearing and the roll-call result for SB 197.