KRS § 141.068 — KY Code / Title XI / Chapter 141 / Section 141.068
141.068 Definitions -- Determination of tax credits under KRS 154.20-258
Status: in_force

141.068 Definitions -- Determination of tax credits under KRS 154.20-258.

(1) As used in this section, unless the context requires otherwise:

(a) "Authority" means the Kentucky Economic Development Finance Authority

as created pursuant to KRS 154.20-010;

(b) "Investor" has the same meaning as set forth in KRS 154.20-254;

(c) "Investment fund" has the same meaning as set forth in KRS 154.20-254;

(d) "Investment fund manager" has the same meaning as set forth in KRS 154.20-

254; and

(e) "Tax credit" means the credits provided for in KRS 154.20-258.

(2) (a) An investor which is an individual or a corporation shall be entitled to the

credit certified by the authority under KRS 154.20-258 against the tax due

computed as provided by KRS 141.020 or 141.040, respectively, and against

the tax imposed by KRS 141.0401, with the ordering of credits as provided in

KRS 141.0205.

(b) The amount of the certified tax credit that may be claimed in any tax year of

the investor shall be determined in accordance with the provisions of KRS

154.20-258.

(3) (a) In the case of an investor that is a pass-through entity not subject to the tax

imposed by KRS 141.040, the amount of the tax credit certified by the

authority under KRS 154.20-258 shall be taken by the pass-through entity

against the limited liability entity tax imposed by KRS 141.0401, and shall

also be apportioned among the partners, members, or shareholders at the same

ratio as the partners', members', or shareholders' distributive shares of income

are determined for the tax year during which the amount of the credit is

certified by the authority.

(b) The amount of the tax credit apportioned to each partner, member, or

shareholder that may be claimed in any tax year of the partner, member, or

shareholder shall be determined in accordance with the provisions of KRS

154.20-258.

(4) (a) In the case of an investor that is a trust not subject to the tax imposed by KRS

141.040, the amount of the tax credit certified by the authority under KRS

154.20-258 shall be apportioned to the trust and the beneficiaries on the basis

of the income of the trust allocable to each for the tax year during which the

tax credit is certified by the authority.

(b) The amount of tax credit apportioned to each trust or beneficiary that may be

claimed in any tax year of the trust or beneficiary shall be determined in

accordance with the provisions of KRS 154.20-258.

(5) The Department of Revenue shall promulgate administrative regulations under KRS

Chapter 13A to adopt procedures for the administration of the credits authorized by

KRS 154.20-258.

(6) In order for the General Assembly to evaluate the fulfillment of the purposes stated

in KRS 154.20-250, the department shall work jointly with the Cabinet for

Economic Development to provide a report detailing each investment fund

agreement entered into by the cabinet. The report shall be submitted to the Interim

Joint Committee on Appropriations and Revenue on or before May 1, 2019, and

contain the following information:

(a) The date the agreement was entered into by the cabinet with the investment

fund manager;

(b) The name of the investment fund manager and the name of the investment

fund;

(c) The primary business location of the investment fund;

(d) The total number of investment funds, the number of investors for each fund,

the amount of committed cash contributions to each investment fund, and the

total qualified investments made by each investment fund, including initial

and subsequent investments, for each small business;

(e) A list detailing each investor within each investment fund, the amount of

investment made by each investor, and the amount of tax credit awarded each

investor;

(f) Whether the authority has suspended the availability of any credits, terminated

any agreements, or pursued any other remedy because the investment fund

manager failed to comply with the agreement;

(g) By taxable year, the amount of tax credit claimed by each investor by type of

tax, including income tax, any taxes imposed on financial institutions, or

insurance taxes;

(h) The number of small businesses that are active, inactive, or closed that have

received investments from an investment fund;

(i) The number and location of each new small business established or expanded;

(j) The number and location of each new job created;

(k) The number of new products and technologies created; and

(l) The total amount of tax credit awarded for each fiscal year.

(7) If either the department or the Cabinet for Economic Development does not

currently have the data to fulfill the reporting requirement of subsection (6) of this

section, the department and the cabinet shall work jointly to obtain the data in an

expedient manner to provide the report on or before the May 1, 2019, report date.