Kentucky Statutes 141.384 – Nonrefundable tax credit for small businesses
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(1) As used in this section, “small business” has the same meaning as in KRS § 154.60-
010.
(2) (a) For taxable years beginning after December 31, 2010, a small business may be eligible for a nonrefundable credit of up to one hundred percent (100%) of the Kentucky income tax imposed under KRS § 141.020 or 141.040, and the limited liability entity tax imposed under KRS § 141.0401.
(b) A small business that is subject to the tax imposed by KRS § 141.020 or
141.040 and that has tax credits approved under Subchapter 60 of KRS Chapter 154 shall apply the credits against the income tax imposed by KRS
141.020 or 141.040 and against the limited liability entity tax imposed by
KRS § 141.0401, with the ordering of credits as provided in KRS § 141.0205.
(c) A small business that is a pass-through entity not subject to the tax imposed by KRS § 141.040 and that has tax credits approved under Subchapter 60 of KRS Chapter 154 shall apply the credits against the limited liability entity tax imposed by KRS § 141.0401, and shall also distribute the amount of the approved tax credits to each partner, member, or shareholder based on the partner’s, member’s, or shareholder’s distributive share of income as determined for the year during which the tax credits are approved, with the ordering of credits as provided in KRS § 141.0205.
Effective: July 15, 2014
History: Amended 2014 Ky. Acts ch. 128, sec. 4, effective July 15, 2014. — Amended
2010 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 13, effective June 4, 2010. — Created
2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 68, effective June 26, 2009.
010.
Terms Used In Kentucky Statutes 141.384
- 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
- Year: means calendar year. See Kentucky Statutes 446.010
(2) (a) For taxable years beginning after December 31, 2010, a small business may be eligible for a nonrefundable credit of up to one hundred percent (100%) of the Kentucky income tax imposed under KRS § 141.020 or 141.040, and the limited liability entity tax imposed under KRS § 141.0401.
(b) A small business that is subject to the tax imposed by KRS § 141.020 or
141.040 and that has tax credits approved under Subchapter 60 of KRS Chapter 154 shall apply the credits against the income tax imposed by KRS
141.020 or 141.040 and against the limited liability entity tax imposed by
KRS § 141.0401, with the ordering of credits as provided in KRS § 141.0205.
(c) A small business that is a pass-through entity not subject to the tax imposed by KRS § 141.040 and that has tax credits approved under Subchapter 60 of KRS Chapter 154 shall apply the credits against the limited liability entity tax imposed by KRS § 141.0401, and shall also distribute the amount of the approved tax credits to each partner, member, or shareholder based on the partner’s, member’s, or shareholder’s distributive share of income as determined for the year during which the tax credits are approved, with the ordering of credits as provided in KRS § 141.0205.
Effective: July 15, 2014
History: Amended 2014 Ky. Acts ch. 128, sec. 4, effective July 15, 2014. — Amended
2010 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 13, effective June 4, 2010. — Created
2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 68, effective June 26, 2009.