FRANKFORT, Ky. (March 15, 2018)- 39 counties in southern, western, and parts of eastern Kentucky counties that purchase power from the Tennessee Valley Authority–or have TVA property-are another step closer to receiving a boost for their economic development efforts. Kentucky House Bill 114, sponsored by Rep. Bart Rowland of Tompkinsville easily cleared the chamber with bipartisan support.
As a publicly-owned utility created by the federal government, the Tennessee Valley Authority is exempt from taxation, but instead makes payments to the State of Kentucky. The bill adjusts the TVA in-lieu-of tax payment formula to ensure more dollars from the payments stay in the 39-county region for economic development needs. HB114 creates a framework for distribution and oversight to ensure funds are used for job-attracting activities like land prep for industrial sites, infrastructure upgrades, or for matching federal, state, or grants.
“Now is the time to seize this opportunity and enhance our competitiveness,” said Matt Tackett, President & CEO of the Kentucky Association for Economic Development. “HB114 would be a gamechanger for attracting and growing jobs. This forward-looking legislation has strong support and real momentum.”
Earlier this session, the House passed HB366, which allocated funds of $2 million to be evenly divided between the 39 counties in Fiscal Year ’18-’19, then $4 million to be evenly divided between the counties in Fiscal Year ’19-’20. These investments would come at a critical time as communities must continually ready sites and upgrade critical infrastructure to attract business and create jobs.
A large coalition of 19<http://www.lrc.ky.gov/record/18RS/HB114.htm> lawmakers from both parties co-sponsored the bill. The legislation will now be received in the Senate, where the concept also has strong bipartisan support. Senator Stan Humphries of Cadiz, along with 10 cosponsors had introduced a companion bill, SB9<http://www.lrc.ky.gov/record/18RS/SB9.htm>.
HB114 has the support of the Kentucky Association of Counties, the Kentucky Association for Economic Development, the Kentucky League of Cities, many regional and local chambers of commerce, industrial authorities and local elected officials.