KRS § 141.0205 — KY Code / Title XI / Chapter 141 / Section 141.0205
141.0205 Priority of application and use of tax credits
Status: in_force

141.0205 Priority of application and use of tax credits.

If a taxpayer is entitled to more than one (1) of the tax credits allowed against the tax

imposed by KRS 141.020, 141.040, and 141.0401, the priority of application and use of

the credits shall be determined as follows:

(1) The nonrefundable business incentive credits against the tax imposed by KRS

141.020 shall be taken in the following order:

(a) The limited liability entity tax credit permitted by KRS 141.0401;

(b) The economic development credits computed under KRS 141.347, 141.381,

141.384, 141.3841, 141.400, 141.403, 141.407, 141.415, 154.12-207, and

154.12-2088;

(c) The qualified farming operation credit permitted by KRS 141.412;

(d) The certified rehabilitation credit permitted by KRS 171.397(1)(a);

(e) The health insurance credit permitted by KRS 141.062;

(f) The tax paid to other states credit permitted by KRS 141.070;

(g) The credit for hiring the unemployed permitted by KRS 141.065;

(h) The recycling or composting equipment credit permitted by KRS 141.390;

(i) The tax credit for cash contributions in investment funds permitted by KRS

154.20-263 in effect prior to July 15, 2002, and the credit permitted by KRS

154.20-258;

(j) The research facilities credit permitted by KRS 141.395;

(k) The employer High School Equivalency Diploma program incentive credit

permitted under KRS 151B.402;

(l) The voluntary environmental remediation credit permitted by KRS 141.418;

(m) The biodiesel and renewable diesel credit permitted by KRS 141.423;

(n) The clean coal incentive credit permitted by KRS 141.428;

(o) The ethanol credit permitted by KRS 141.4242;

(p) The cellulosic ethanol credit permitted by KRS 141.4244;

(q) The energy efficiency credits permitted by KRS 141.436;

(r) The railroad maintenance and improvement credit permitted by KRS 141.385;

(s) The Endow Kentucky credit permitted by KRS 141.438;

(t) The New Markets Development Program credit permitted by KRS 141.434;

(u) The distilled spirits credit permitted by KRS 141.389;

(v) The angel investor credit permitted by KRS 141.396;

(w) The film industry credit permitted by KRS 141.383 for applications approved

on or after April 27, 2018, but before January 1, 2022;

(x) The inventory credit permitted by KRS 141.408;

(y) The renewable chemical production credit permitted by KRS 141.4231; and

(z) The qualified broadband investment tax credit permitted by KRS 141.391;

(2) After the application of the nonrefundable credits in subsection (1) of this section,

the nonrefundable personal tax credits against the tax imposed by KRS 141.020

shall be taken in the following order:

(a) The individual credits permitted by KRS 141.020(3);

(b) The credit permitted by KRS 141.066;

(c) The tuition credit permitted by KRS 141.069;

(d) The household and dependent care credit permitted by KRS 141.067;

(e) The income gap credit permitted by KRS 141.066; and

(f) The Education Opportunity Account Program tax credit permitted by KRS

141.522;

(3) After the application of the nonrefundable credits provided for in subsection (2) of

this section, the refundable credits against the tax imposed by KRS 141.020 shall be

taken in the following order:

(a) The individual withholding tax credit permitted by KRS 141.350;

(b) The individual estimated tax payment credit permitted by KRS 141.305;

(c) The certified rehabilitation credit permitted by KRS 171.3961, 171.3963, and

171.397(1)(b);

(d) The film industry tax credit permitted by KRS 141.383 for applications

approved prior to April 27, 2018, or on or after January 1, 2022;

(e) The development area tax credit permitted by KRS 141.398;

(f) The decontamination tax credit permitted by KRS 141.419; and

(g) The pass-through entity tax credit permitted by KRS 141.209;

(4) The nonrefundable credit permitted by KRS 141.0401 shall be applied against the

tax imposed by KRS 141.040;

(5) The following nonrefundable credits shall be applied against the sum of the tax

imposed by KRS 141.040 after subtracting the credit provided for in subsection (4)

of this section, and the tax imposed by KRS 141.0401 in the following order:

(a) The economic development credits computed under KRS 141.347, 141.381,

141.384, 141.3841, 141.400, 141.403, 141.407, 141.415, 154.12-207, and

154.12-2088;

(b) The qualified farming operation credit permitted by KRS 141.412;

(c) The certified rehabilitation credit permitted by KRS 171.397(1)(a);

(d) The health insurance credit permitted by KRS 141.062;

(e) The unemployment credit permitted by KRS 141.065;

(f) The recycling or composting equipment credit permitted by KRS 141.390;

(g) The coal conversion credit permitted by KRS 141.041;

(h) The enterprise zone credit permitted by KRS 154.45-090, for taxable periods

ending prior to January 1, 2008;

(i) The tax credit for cash contributions to investment funds permitted by KRS

154.20-263 in effect prior to July 15, 2002, and the credit permitted by KRS

154.20-258;

(j) The research facilities credit permitted by KRS 141.395;

(k) The employer High School Equivalency Diploma program incentive credit

permitted by KRS 151B.402;

(l) The voluntary environmental remediation credit permitted by KRS 141.418;

(m) The biodiesel and renewable diesel credit permitted by KRS 141.423;

(n) The clean coal incentive credit permitted by KRS 141.428;

(o) The ethanol credit permitted by KRS 141.4242;

(p) The cellulosic ethanol credit permitted by KRS 141.4244;

(q) The energy efficiency credits permitted by KRS 141.436;

(r) The ENERGY STAR home or ENERGY STAR manufactured home credit

permitted by KRS 141.437;

(s) The railroad maintenance and improvement credit permitted by KRS 141.385;

(t) The railroad expansion credit permitted by KRS 141.386;

(u) The Endow Kentucky credit permitted by KRS 141.438;

(v) The New Markets Development Program credit permitted by KRS 141.434;

(w) The distilled spirits credit permitted by KRS 141.389;

(x) The film industry credit permitted by KRS 141.383 for applications approved

on or after April 27, 2018, but before January 1, 2022;

(y) The inventory credit permitted by KRS 141.408;

(z) The renewable chemical production tax credit permitted by KRS 141.4231;

(aa) The Education Opportunity Account Program tax credit permitted by KRS

141.522; and

(ab) The qualified broadband investment tax credit permitted by KRS 141.391;

and

(6) After the application of the nonrefundable credits in subsection (5) of this section,

the refundable credits shall be taken in the following order:

(a) The corporation estimated tax payment credit permitted by KRS 141.044;

(b) The certified rehabilitation credit permitted by KRS 171.3961, 171.3963, and

171.397(1)(b);

(c) The film industry tax credit permitted by KRS 141.383 for applications

approved prior to April 27, 2018, or on or after January 1, 2022;

(d) The decontamination tax credit permitted by KRS 141.419; and

(e) The pass-through entity tax credit permitted by KRS 141.209.