(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;

Terms Used In Kentucky Statutes 141.068

  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Department: means the Department of Revenue. See Kentucky Statutes 141.010
  • Individual: means a natural person. See Kentucky Statutes 141.010
  • Joint committee: Committees including membership from both houses of teh legislature. Joint committees are usually established with narrow jurisdictions and normally lack authority to report legislation.
  • Pass-through entity: means any partnership, S corporation, limited liability company, limited liability partnership, limited partnership, or similar entity recognized by the laws of this state that is not taxed for federal purposes at the entity level, but instead passes to each partner, member, shareholder, or owner their proportionate share of income, deductions, gains, losses, credits, and any other similar attributes. See Kentucky Statutes 141.010
  • Taxable year: means the calendar year or fiscal year ending during such calendar year, upon the basis of which net income is computed, and in the case of a return made for a fractional part of a year under the provisions of this chapter or under administrative regulations prescribed by the commissioner, "taxable year" means the period for which the return is made. See Kentucky Statutes 141.010
  • Year: means calendar year. See Kentucky Statutes 446.010

(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.
Effective: April 27, 2018
History: Amended 2018 Ky. Acts ch. 171, sec. 96, effective April 14, 2018; and ch.
207, sec. 96, effective April 27, 2018. — Amended 2016 Ky. Acts ch. 82, sec. 34, effective July 15, 2016. — Amended 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 18, effective June 28, 2006. — Amended 2005 Ky. Acts ch. 85, sec. 477, effective June
20, 2005; and ch. 168, sec. 10, effective March 18, 2005. — Amended 2002 Ky. Acts ch. 230, sec. 6, effective July 15, 2002. — Created 1998 Ky. Acts ch. 414, sec. 16, effective July 15, 1998.
Legislative Research Commission Note (6/28/2006). 2006 (1st Extra Sess.) Ky. Acts ch. 2, sec. 73, provides that “unless a provision of this Act specifically applies to an earlier tax year, the provisions of this Act shall apply to taxable years beginning on or after January 1, 2007.”
Legislative Research Commission Note (3/18/2005). 2005 Ky. Acts ch. 168, sec. 165, provides that this section shall apply to tax years beginning on or after January 1,
2005.