Kentucky Administrative Regulations › Title 103 - FINANCE AND ADMINISTRATION CABINET - DEPARTMENT OF REVENUE › Chapter 15 - Income Tax; General Administration › Section 103 KAR 15:180 - Kentucky new markets development program tax credit

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				131.131,
				136.320,
				136.330,
				136.340,
				136.350,
				136.370,
				136.390,
				141.020,
				141.040,
				141.0401,
				141.050,
				141.432,
				141.433,
				141.434,
				304.3-270,
				26 U.S.C.
				45D
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				141.434 establishes a nonrefundable tax
				credit for a person or entity making a qualified equity investment in a
				qualified community development entity as provided by
				KRS
				141.432(6).
				KRS
				141.433(7) requires the
				department to promulgate administrative regulations to implement the provisions
				of
				KRS
				141.432 to
				KRS
				141.434, and to administer the allocation of
				tax credits issued for qualified equity investments. This administrative
				regulation establishes guidelines and the filing requirements of a qualified
				community development entity (CDE) in order for the department to certify
				qualified equity investments and to allocate tax credits to a person or entity
				making a qualified equity investment in a qualified community development
				entity.
Section 1. Definitions.
(1) "Applicant" means a CDE that files an
			 application with the department to have an equity investment or long-term debt
			 security certified as a qualified equity investment eligible for the tax credit
			 authorized by
			 KRS
			 141.434.
(2) "Application" means Form 8874(K),
			 Application for Certification of Qualified Equity Investments Eligible for
			 Kentucky New Markets Development Program Tax Credit (Revenue Form 41A720-S80),
			 that is published by the department and filed by a CDE with the department for
			 certification as a qualified equity investment.
(3) "Application fee" means a $1,000
			 nonrefundable cashier's check attached to the application at the time of filing
			 with the department.
(4) "CDE"
			 means a qualified community development entity as defined by
			 KRS
			 141.432(6).
(5) "CDFI Fund" means the U.S. Department of
			 Treasury, Community Development Financial Institutions Fund.
(6) "Certification form" means Form
			 8874(K)-A, Notice of Kentucky New Markets Development Program Tax Credit and
			 Certification, that is published by the department and filed by a CDE
			 certifying to the department receipt of a cash investment.
(7) "Certified purchase price" means the
			 purchase price of a qualified equity investment contained in the application
			 approved by the department.
(8)
			 "Department" means the Kentucky Department of Revenue.
(9) "Department's approval" means certified
			 by the department as provided by
			 KRS
			 141.433(3).
(10) "Identification number" means the:
(a) Social Security Number for an
			 individual;
(b) Federal Employer
			 Identification Number for a general partnership, estate, or trust; or
(c) Kentucky Corporation/LLET Account Number
			 for a corporation or limited liability pass-through entity.
(11) "Long-term debt security" is
			 defined by
			 KRS
			 141.432(3).
(12) "Notice of recapture" means Form
			 8874(K)-B, Notice of Kentucky New Markets Development Program Tax Credit
			 Recapture, that is published by the department and sent to the CDE and each
			 taxpayer from whom a credit is to be recaptured as a final order of
			 recapture.
(13) "Performance fee"
			 is defined by
			 KRS
			 141.433(8).
(14) "Qualified active low-income community
			 business" is defined by
			 KRS
			 141.432(5).
(15) "Qualified community development entity"
			 is defined by
			 KRS
			 141.432(6).
(16) "Qualified equity investment" is defined
			 by
			 KRS
			 141.432(7).
(17) "Qualified low-income community
			 investment" is defined by
			 KRS
			 141.432(8).
(18) "Tax credit" is defined by
			 KRS
			 141.432(9).
(19) "Taxpayer" is defined by
			 KRS
			 141.432(10).