AN ACT providing funding and establishing conditions for state government agencies and institutions, making an appropriation therefor, and declaring an emergency.

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…

Economic Development Local Government Small Business State Agencies Taxation, Income--Corporate Taxation

Introduced: February 13, 2026

Last action: April 27, 2026

Delivered To Secretary Of State (Acts Ch. 202)

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This bill changes how Kentucky awards tax incentives to businesses that invest and create jobs in the state. Under the new system, counties are divided into four tiers based on their unemployment rates and population, with the level of incentives a company can receive depending on which tier the county where it invests is located. Counties are reviewed and reclassified each year by the Kentucky Economic Development Finance Authority. Who it may affect: businesses considering new investments or expansions in Kentucky, particularly those in smaller or higher-unemployment counties, as well as local governments and economic development officials across the state.

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