Earth Day is April 22, and the Cabinet for Economic Development has shown its committment to the environment with projects and incentive programs.

Environmentally Speaking:
Earth Day 2007

As Earth Day (April 22) approaches, it seems only fitting to highlight some of the projects and incentive programs that illustrate the Commonwealth’s commitment to the environment. In 2005, tax modernization was enacted and one of the highlights of the statute was the Kentucky Environmental Stewardship Act (KESA) tax credit. KESA is available to any business entity that manufactures a unique product that has a substantial positive impact on the environment. It is designed to increase the location and expansion of businesses producing environmentally friendly products.

KESA has been in effect for less than two years but it has already had an impact on the state. KESA was an important factor in the decision by Toyota to produce a hybrid version of its best-selling Toyota Camry at its Georgetown facility. The first of its Camry hybrids began production in the fall of 2006. Toyota expects an initial annual production of 60,000 hybrids.

Many of the state’s other tax incentives can be used to promote the remediation of brownfields located throughout the state. The following incentives include the cost of remediation as an eligible cost to be included when considering tax credit amounts. The Kentucky Industrial Development Act (KIDA) focuses on new and expanding manufacturing companies that create at least 15 new full-time jobs and invests at least $100,000. Kentucky Rural Economic Development Act (KREDA) focuses on new and expanding manufacturing companies that create at least 15 new full-time jobs and invest at least $100,000, in economically disadvantaged counties. These are some but not all of the incentives that may be used to help promote a “green” and environmentally friendly Kentucky.

Also, for the first time the Cabinet is now promoting industrial sites and buildings that have been environmentally impacted. The Cabinet now shows remediated brownfield sites and buildings that meet our criteria, on our online searchable database, along with the traditional industrial sites and buildings the Cabinet markets.