Development of an effective economic development incentive policy takes careful and strategic planning. Successful communities differentiate themselves and promote a business friendly environment which often leads to job growth. RSA’s professionals are experienced and knowledgeable in the many facets of public-private partnerships. Our services include:
Industrial Revenue Bonds (“IRB”) may be issued by state and local governments in Kentucky to help finance industrial buildings as defined by KRS 103.200. An “industrial building” means any land and building(s), any facility or other improvements thereon, and all real and personal properties including operating equipment and machinery which shall be suitable for: any activity, business, or industry for the manufacturing, processing or assembling of any commercial product, including agricultural, mining, or manufactured products, together with storage, warehousing, and distribution facilities in respect thereof; any activity, including new construction, designed for revitalization or redevelopment of downtown business districts.
In order to encourage involvement of private investment in development areas, KRS Chapter 65 was created. In 2007, it was amended to establish five categories of tax increment financing eligibility and expand the use of tax increment finance to specifically include community redevelopment in all class cities. Tax Increment Financing (“TIF”) captures the increase in tax revenues generated from increased values of taxable properties and taxable activities and dedicates those revenues to finance debt to pay for the public infrastructure of the project.
The New Market Tax Credit (“NMTC”) Program provides an incentive to attract $15 billion of private equity investments over a seven year span (2001 to 2007) into distressed communities. The incentive is a 39% tax credit, taken over a 7-year period, on qualified equity investments in Community Development Entities (“CDE”), which invest the equity proceeds into Low Income Communities. Its purpose is to provide an incentive that stimulates investment, which in turn facilitates economic and community development in distressed communities.