KRS § 141.419 — KY Code / Title XI / Chapter 141 / Section 141.419
141.419 Definitions for section -- Refundable credit for qualifying expenditures at qualifying decontamination property -- Administrative regulations -- Reporting
Status: in_force

141.419 Definitions for section -- Refundable credit for qualifying expenditures at

qualifying decontamination property -- Administrative regulations --

Reporting.

(1) As used in this section:

(a) "Assignee" means the taxpayer to whom the credit allowed under this section

is transferred;

(b) "Exempt entity" means any tax-exempt organization under Section 501(c)(3)

of the Internal Revenue Code, any political subdivision of the

Commonwealth, any state or local agency, board, or commission, or any

quasi-governmental entity;

(c) "Qualifying expenditures" has the same meaning as in KRS 224.1-420;

(d) "Qualifying decontamination property" has the same meaning as in KRS

224.1-420; and

(e) "Taxpayer" means any:

1. Entity that is subject to the taxes imposed by KRS 141.020 or KRS

141.040 and 141.0401; or

2. Exempt entity and may include any individual, corporation, limited

liability company, business development corporation, partnership,

limited partnership, sole proprietorship, association, joint stock

company, receivership, trust, professional service organization, or other

legal entity through which business is conducted that claims the credit or

transfers the credit under this section.

(2) For taxable years beginning on or after January 1, 2022, but before January 1, 2032,

a taxpayer making a qualifying expenditure at a qualifying decontamination

property shall be allowed a refundable credit against the taxes imposed by KRS

141.020 or 141.040 and 141.0401, with the ordering of credits as provided in KRS

141.0205.

(3) The department may promulgate administrative regulations in accordance with the

provisions of KRS Chapter 13A to establish policies and procedures to implement

the provisions of this section.

(4) Any taxpayer approved for credit under this section shall not also claim or apply for

credit related to the remediation or decontamination of the same qualifying property

under KRS 141.418.

(5) The taxpayer receiving the credits may assign, sell, or transfer, in whole or in part,

the tax credit to any other taxpayer. Within thirty (30) days of credit transfer, the

assignor shall provide written notice to the department of its intent to transfer or sell

the tax credit along with supporting documentation prescribed by the department

which shall include but not be limited to:

(a) Date on which the transfer is effective;

(b) Assignee's name, taxpayer identification number, address, and bank routing

and transfer number; and

(c) Total amount of credit to be transferred.

(6) (a) The purpose of this credit is to encourage investment in and decontamination

or remediation of qualifying decontamination property. In order for the

General Assembly to evaluate the fulfillment of the purpose stated in this

section, the department shall provide the following information on a

cumulative basis for each taxable year to provide a historical impact of the tax

credit to the Commonwealth:

1. The number of tax returns, by the tax type of return filed, claiming the

credit for each taxable year;

2. The total amount of credit claimed on returns filed for each taxable year;

3. The cumulative number of projects by county, as identified by the

county in which the qualifying decontamination project is located, for

each taxable year;

4. The cumulative total of credits claimed by county, as identified by the

county in which the qualifying decontamination project is located for

each taxable year;

5. a. In the case of taxpayers other than corporations, based on ranges of

adjusted gross income of no larger than five thousand dollars

($5,000), the total amount of credits claimed for each adjusted

gross income range for each taxable year; and

b. In the case of corporations, based on ranges of net income of no

larger than fifty thousand dollars ($50,000), the total amount of

credits claimed for each net income range for each taxable year;

and

6. Any other taxpayer information necessary for the General Assembly to

evaluate this credit.

(b) The report required by paragraph (a) of this subsection shall be submitted to

the Interim Joint Committee on Appropriations and Revenue no later than

November 1, 2024, and annually thereafter as long as the decontamination tax

credit is claimed on any tax return filed.