KY HB462

Amends KRS 154.30-010 to extend the "modified new revenues for income tax" calculation indefinitely for projects approved prior to January 1, 2023, removing the previous limitation that restricted this calculation to calendar years 2023 to 2026

The modifier formula divides the 5% individual income tax rate (in effect December 31, 2022) by the current income tax rate under KRS 141.020, adjusting incremental revenue calculations as Kentucky's income tax rate changes

Maintains existing tax increment financing (TIF) framework including activation date timelines of 2-4 years for standard projects and 10 years for signature projects

Preserves termination date limits of 20 years from activation for standard TIF agreements and 30 years for signature projects, with a maximum of 40 years from development area establishment

No changes to eligible agency types, approved infrastructure costs, capital investment definitions, or state tax revenue sources that can be pledged for TIF projects