KLC Supported Economic Development Bill Passes full House

A KLC-supported economic development bill passed the House on Monday.

House Bill 533, which allows the payment of working capital expenditures as an allowable use of money received from the sale of conduit bonds, passed the House with an 89-3 vote.

The bill’s sponsor, Rep. Amy Neighbors, R-Edmonton, said the legislation would fix a competitive disadvantage that currently exists in the law.

The federal tax code permits up to 5% of tax-exempt bond proceeds to be used for working capital purposes, but borrowers using this statute, such as the Kentucky Bond Development Corporation, cannot take advantage of that benefit currently.  

“In my area, our local nursing home has been exploring buying out of the pension system. Because you must take your assumed liabilities all at once, it makes it nearly unaffordable, but this language creates another option for them,” Neighbors said.

The legislation now heads to the Senate for consideration.