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Cabinet for Economic Development outlines $25 million KEIA sales-tax abatement and reimbursement process to subcommittee
Summary
At a June 3 subcommittee meeting, Cabinet for Economic Development Secretary Jeff Noel described the Kentucky Enterprise Initiative Actsales-tax abatement of $25 million statewide and explained that wage-credit reimbursements require a Department of Revenue form detailing job creation and individual income tax numbers.
The Budget Review Subcommittee on Economic Development & Tourism, Natural Resources & Environmental Protection heard from the Cabinet for Economic Development on June 3 about the state's business-incentive programs, including the Kentucky Enterprise Initiative Act and procedures for wage-credit reimbursements.
Jeff Noel, secretary of the Cabinet for Economic Development, told the subcommittee that the Kentucky Enterprise Initiative Act (KEIA) provides $25 million in sales-tax abatement statewide and that the cabinet approaches utilizing the full statutory amount each year. He also said neighboring states require businesses to provide documentation to qualify for similar tax incentives.
In response to Representative Matthew Lehman, Noel said the cabinet seeks to use the full KEIA allocation annually and that eligibility documentation practices are comparable to surrounding states. When Chair Senator Matt Nunn asked about wage-credit reimbursements, Noel explained that a form must be submitted to the Department of Revenue containing detailed information about job creation and the individual income tax numbers for the credited positions.
Matthew Wingate, general counsel for the Cabinet for Economic Development, joined Noel in providing information to the subcommittee but the minutes do not record additional clarifying details beyond the summary provided by Noel.
The subcommittee did not take any formal votes or adopt motions during the meeting. Committee materials are available online at https://apps.legislature.ky.gov/CommitteeDocuments/37. The meeting was called to order at 9:00 AM ET and adjourned at 9:50 AM ET.
