Lawmakers discuss new study of tax-incentive programs

FRANKFORT Kentucky needs an independent review of its tax-incentive programs to determine what they cost the state in lost revenue and if they produce the jobs intended, House Speaker Pro Tem Larry Clark, D-Louisville, told a Senate panel Tuesday.

Clark and the rest of the House Democratic leadership are sponsoring House Joint Resolution 122, which authorizes the legislature to hire a consulting firm to study how tax incentives are awarded under 15 programs. The House approved the measure Feb. 24 without opposition.

On Tuesday, the Senate Economic Development, Tourism and Labor Committee briefly discussed the bill but did not vote on it. Committee Chairwoman Alice Forgy Kerr, R-Lexington, said she expects approval next week.

First, she said, she wanted to hear how the state Economic Development Cabinet, which administers tax incentives, feels about an outside study. Economic Development Secretary Larry Hayes told the committee the cabinet supports it.

“We’re on board to cooperate any way we can,” Hayes said.
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