154.34.120 Nonrefundable tax credit for reinvestment project by approved company. - Kentucky Statutes

Download pdf

Loading PDF...

154.34-120 Nonrefundable tax credit for reinvestment project by approved company. (1) Except as provided in subsection (5) of this section, for taxable years beginning after December 31, 2009, an approved company 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 that would otherwise be owed by the approved company to the
Commonwealth for the approved company's tax year, on the income, Kentucky
gross profits, or Kentucky gross receipts of the approved company generated by or
arising from the reinvestment project. (2) The credit allowed the approved company shall be applied against both the income tax imposed by KRS 141.020 or 141.040, and the limited liability entity tax
imposed by KRS 141.0401, with credit ordering as provided in KRS 141.0205, for
the tax year for which the tax return of the approved company is filed. Any credit
not used in the year in which it was first available may be carried forward to
subsequent years, provided that no credit may be carried forward beyond the term of
the reinvestment agreement. (3) The approved company shall not be required to pay estimated tax payments as prescribed in KRS 141.042 on the Kentucky taxable income, Kentucky gross
receipts, or Kentucky gross profits generated by or arising from the eligible project. (4) The credit provided by this section shall be determined as provided in KRS 141.415. (5) (a) For an approved company which receives preliminary approval prior to February 1, 2010, the amount of incentives allowed in any year shall not
exceed the lesser of the tax liability of the approved company related to the
reinvestment project for that taxable year or the approved costs that have not
yet been recovered. (b) For an approved company which receives preliminary approval on or after February 1, 2010, the amount of incentives allowed in any year shall not
exceed the lesser of the tax liability of the approved company related to the
reinvestment project for that taxable year or twenty percent (20%) of the total
amount of the approved costs. (c) The incentives shall be allowed for each taxable year of the approved company during the term of the reinvestment agreement for which a tax return
is filed by the approved company. Effective: June 4, 2010
History: Amended 2010 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 8, effective June 4, 2010. -- Created 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 5, effective June 26, 2009. Legislative Research Commission Note (6/26/2009). 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 7, provides that, notwithstanding the amendments contained in Sections 1
to 6 of that Act (which includes this statute), "all reinvestment projects preliminarily
approved on or after the effective date of this Act shall not be eligible for final
approval until July 1, 2010"; and 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 8,
provides that, notwithstanding the amendments in Sections 1 to 6 of that Act or the repeals in Section 114 of that Act, "all reinvestment projects preliminarily or finally
approved prior to the effective date of this Act shall be governed by Subchapter 34 of
KRS Chapter 154 as it existed prior to the effective date of this Act."