KRS 139.535 — Sales and use tax incentive for approved companies on qualifying purchases for economic development projects approved under KRS 154.31-030

(1) As used in this section:
(a) "Agreement" has the same meaning as in KRS 154.31-010;
(b) "Approved company" has the same meaning as in KRS 154.31-010;
(c) "Economic development project" has the same meaning as in KRS 154.31 -
010;
(d) "Electronic processing" has the same meaning as in KRS 154.31-010;
(e) "Equipment" has the same meaning as in KRS 154.31-010;
(f) "Project term" has the same meaning as in KRS 154.31-010; and
(g) "Research and development" has the same meaning as in KRS 154.31-010.
(2) Notwithstanding any provision of KRS 139.770 to the contrary, an approved
company may receive a refund of sales and u se tax paid on approved expenses after
execution of the agreement for building and construction materials, and equipment
used in research and development or for electronic processing at an economic
development project as provided in the agreement executed under KRS 154.31-030.
(3) (a) The approved company shall apply for the sales and use tax incentives as
provided in this subsection.
(b) For an economic development project with a project term of three (3) years or
less, the approved company shall submit an application to receive the sales
and use tax incentives to the department within sixty (60) days of the earlier of
the completion of the economic development project or the expiration of the
project term.
(c) 1. For an economic development project with a project term of greater than
three (3) years, the approved company shall, beginning with the third
year of the project term, file with the department annually an
information return, and any supporting documentation required by the
department. The approved company shall not be eligible to receive the
sales and use tax incentives until the project is complete and the
application for incentives is submitted to the department as required by
subparagraph 3. of this paragraph.
2. The information return and documentation shall be filed with the
department within sixty (60) days following the end of the calendar year,
and shall include information relating to prior unreported years.
3. The approved company shall file a final request for sales and use tax
incentives within sixty (60) days of the earlier of the completion of the
economic development project or the expiration of the project term.
(4) The approved company shall have no obligation to refund or otherwise return any
amount o f the sales and use tax refund received to the person who originally
collected the tax and remitted it to the Commonwealth.
(5) An approved company shall execute information -sharing agreements prescribed by
the department with contractors, vendors, and oth er related parties so that the
department may verify expenditures and sales and use tax paid.
(6) Interest shall not be allowed or paid on any incentives paid under this section. The
department may examine any distribution of sales and use tax incentives within four
(4) years from the date the final application for sales and use tax incentives is
received. An overpayment resulting from the examination shall be repaid to the
State Treasury. Any amount required to be repaid is subject to the interest
provisions of KRS 131.183 and to the penalty provisions of KRS 131.180.
(7) The department may promulgate administrative regulations in accordance with KRS
Chapter 13A, and shall require the filing of forms designed by the department to
reflect the intent of this section.