Kentucky Statutes 141.065 – Credit allowed for hiring person classified as unemployed
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(1) For the purposes of this section, “code” or “Internal Revenue Code” means the
Internal Revenue Code in effect as of December 31, 1981.
(2) There shall be allowed as a credit for any taxpayer against the tax imposed by KRS § 141.020 or 141.040 and 141.0401 for any taxable year, with the ordering of the credits as provided in KRS § 141.0205, an amount equal to one hundred dollars ($100) for each person hired by the taxpayer, if that person has been classified as unemployed by the Office of Unemployment Insurance in the Education and Labor Cabinet and has been so classified for at least sixty (60) days prior to his employment by the taxpayer, and if further that person has remained in the employ of the taxpayer for at least one hundred eighty (180) consecutive days during the taxable year in which the taxpayer claims the credit.
(3) No credit shall be allowed to any taxpayer for any person hired under any of the following circumstances:
(a) A person for whom the taxpayer receives federally funded payments for on-the-job training;
(b) For any person who bears any of the relationships to the taxpayer described in paragraphs (1) through (8) of Section 152(a) of the Internal Revenue Code, or, if the taxpayer is a corporation, to an individual who owns, directly or indirectly, more than fifty percent (50) in value of the outstanding stock of the corporation as determined with the application of Section 267(c) of the code;
(c) If the taxpayer is an estate or trust, to any person who is a grantor, beneficiary, or fiduciary of the estate or trust, or is an individual who bears any of the relationships described in paragraphs (1) through (8) of Section
152(a) of the code to a grantor, beneficiary, or fiduciary of the estate or trust; or
(d) To any person who is a dependent of the taxpayer as described in code Section 152(a)(9), or, if the taxpayer is an estate or trust, of a grantor, beneficiary, or fiduciary of the estate or trust.
(4) For purposes of this section, all employees of all corporations which are members of the same controlled group of corporations shall be treated as employed by a single employer. In no instance shall the credit, if any, allowable by subsection (2) of this section for any employee qualified thereunder be claimed more than once for any taxable year by such a controlled group of corporations. For purposes of this subsection, the term “controlled group of corporations” has the meaning given to that term by code Section 1563(a), except that “more than fifty percent (50)” shall be substituted for “at least eighty percent (80)” each place it appears in code Section 1563(a)(1), and the determination shall be made without regard to subsections (a)(4) and (e)(3)(c) of code Section 1563.
(5) For purposes of this section, all employees of trades or businesses (whether or not incorporated) which are under common control shall be treated as employed by a single employer, and in no instance shall the credit, if any, allowable by subsection (2) of this section for any employee qualified
thereunder be claimed more than once for any taxable year.
(6) No credit shall be allowed under subsection (2) of this section to any organization which is exempt from income tax by this chapter.
(7) In the case of a pass-through entity, the amount of the credit determined under this section for any taxable year shall be applied at the entity level against the limited liability entity tax imposed by KRS § 141.0401 and shall also be apportioned pro rata among the members, partners, or shareholders of the limited liability entity on the last day of the taxable year, and any person to whom an amount is so apportioned shall be allowed, subject to code Section
53, a credit under subsection (2) of this section for that amount.
(8) In the case of an estate or trust, the amount of the credit determined under this section for any taxable year shall be apportioned between the estate or trust and the beneficiaries on the basis of income of the estate or trust allocable to each, and any beneficiary to whom any amount has been apportioned under this subsection shall be allowed, subject to code Section 53, a credit under subsection (2) of this section for that amount.
(9) In no event shall the credit allowed, pursuant to this section, for any taxable year exceed the tax liability of the taxpayer for the taxable year.
Effective:July 1, 2022
History: Amended 2022 Ky. Acts ch. 236, sec. 25, effective July 1, 2022. — Amended 2019 Ky. Acts ch. 146, sec. 10, effective June 27, 2019. — Amended
2009 Ky. Acts ch. 11, sec. 11, effective June 25, 2009. — Amended 2006 (1st
Extra. Sess.) Ky. Acts ch. 2, sec. 17, effective June 28, 2006. — Amended 2005
Ky. Acts ch. 99, sec. 117, effective June 20, 2005. — Amended 2000 Ky. Acts ch. 14, sec. 9, effective July 14, 2000. — Amended 1998 Ky. Acts ch. 426, sec.
100, effective July 15, 1998. — Amended 1984 Ky. Acts ch. 111, secs. 79 and
177, effective July 13, 1984. — Created 1982 Ky. Acts ch. 431, sec. 1, effective
July 15, 1982.
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.”
Internal Revenue Code in effect as of December 31, 1981.
Terms Used In Kentucky Statutes 141.065
- 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
- Corporation: means a corporation taxable under KRS §. See Kentucky Statutes 141.010
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- corporations: means :
1. See Kentucky Statutes 141.900 - Fiduciary: A trustee, executor, or administrator.
- Grantor: The person who establishes a trust and places property into it.
- Individual: means a natural person. See Kentucky Statutes 141.010
- Internal Revenue Code: means for taxable years beginning on or after January 1,
2023, the Internal Revenue Code in effect on December 31, 2022, exclusive of any amendments made subsequent to that date, other than amendments that extend provisions in effect on December 31, 2022, that would otherwise terminate. See Kentucky Statutes 141.010 - 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
- Person: means "person" as defined in Section 7701(a)(1) of the Internal Revenue
Code. See Kentucky Statutes 141.900 - 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
(2) There shall be allowed as a credit for any taxpayer against the tax imposed by KRS § 141.020 or 141.040 and 141.0401 for any taxable year, with the ordering of the credits as provided in KRS § 141.0205, an amount equal to one hundred dollars ($100) for each person hired by the taxpayer, if that person has been classified as unemployed by the Office of Unemployment Insurance in the Education and Labor Cabinet and has been so classified for at least sixty (60) days prior to his employment by the taxpayer, and if further that person has remained in the employ of the taxpayer for at least one hundred eighty (180) consecutive days during the taxable year in which the taxpayer claims the credit.
(3) No credit shall be allowed to any taxpayer for any person hired under any of the following circumstances:
(a) A person for whom the taxpayer receives federally funded payments for on-the-job training;
(b) For any person who bears any of the relationships to the taxpayer described in paragraphs (1) through (8) of Section 152(a) of the Internal Revenue Code, or, if the taxpayer is a corporation, to an individual who owns, directly or indirectly, more than fifty percent (50) in value of the outstanding stock of the corporation as determined with the application of Section 267(c) of the code;
(c) If the taxpayer is an estate or trust, to any person who is a grantor, beneficiary, or fiduciary of the estate or trust, or is an individual who bears any of the relationships described in paragraphs (1) through (8) of Section
152(a) of the code to a grantor, beneficiary, or fiduciary of the estate or trust; or
(d) To any person who is a dependent of the taxpayer as described in code Section 152(a)(9), or, if the taxpayer is an estate or trust, of a grantor, beneficiary, or fiduciary of the estate or trust.
(4) For purposes of this section, all employees of all corporations which are members of the same controlled group of corporations shall be treated as employed by a single employer. In no instance shall the credit, if any, allowable by subsection (2) of this section for any employee qualified thereunder be claimed more than once for any taxable year by such a controlled group of corporations. For purposes of this subsection, the term “controlled group of corporations” has the meaning given to that term by code Section 1563(a), except that “more than fifty percent (50)” shall be substituted for “at least eighty percent (80)” each place it appears in code Section 1563(a)(1), and the determination shall be made without regard to subsections (a)(4) and (e)(3)(c) of code Section 1563.
(5) For purposes of this section, all employees of trades or businesses (whether or not incorporated) which are under common control shall be treated as employed by a single employer, and in no instance shall the credit, if any, allowable by subsection (2) of this section for any employee qualified
thereunder be claimed more than once for any taxable year.
(6) No credit shall be allowed under subsection (2) of this section to any organization which is exempt from income tax by this chapter.
(7) In the case of a pass-through entity, the amount of the credit determined under this section for any taxable year shall be applied at the entity level against the limited liability entity tax imposed by KRS § 141.0401 and shall also be apportioned pro rata among the members, partners, or shareholders of the limited liability entity on the last day of the taxable year, and any person to whom an amount is so apportioned shall be allowed, subject to code Section
53, a credit under subsection (2) of this section for that amount.
(8) In the case of an estate or trust, the amount of the credit determined under this section for any taxable year shall be apportioned between the estate or trust and the beneficiaries on the basis of income of the estate or trust allocable to each, and any beneficiary to whom any amount has been apportioned under this subsection shall be allowed, subject to code Section 53, a credit under subsection (2) of this section for that amount.
(9) In no event shall the credit allowed, pursuant to this section, for any taxable year exceed the tax liability of the taxpayer for the taxable year.
Effective:July 1, 2022
History: Amended 2022 Ky. Acts ch. 236, sec. 25, effective July 1, 2022. — Amended 2019 Ky. Acts ch. 146, sec. 10, effective June 27, 2019. — Amended
2009 Ky. Acts ch. 11, sec. 11, effective June 25, 2009. — Amended 2006 (1st
Extra. Sess.) Ky. Acts ch. 2, sec. 17, effective June 28, 2006. — Amended 2005
Ky. Acts ch. 99, sec. 117, effective June 20, 2005. — Amended 2000 Ky. Acts ch. 14, sec. 9, effective July 14, 2000. — Amended 1998 Ky. Acts ch. 426, sec.
100, effective July 15, 1998. — Amended 1984 Ky. Acts ch. 111, secs. 79 and
177, effective July 13, 1984. — Created 1982 Ky. Acts ch. 431, sec. 1, effective
July 15, 1982.
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.”