Page 1 of 1 141.434 New Markets Development Program tax credit. (1) There is hereby created a Kentucky New Markets Development Program tax credit. <br>(2) A person or entity that makes a qualified equity investment earns a vested right to the tax credit created by subsection (1) of this section. The amount of the credit <br>shall be equal to thirty-nine percent (39%) of the purchase price of the qualified <br>equity investment made by the person or entity claiming the credit. The tax credit <br>may be utilized as follows: <br>(a) The holder of the qualified equity investment on a particular credit allowance date of the qualified equity investment, whether it be the original purchaser or <br>subsequent holder of the qualified equity investment, may utilize a portion of <br>the tax credit against its tax liability for the taxable year that includes the <br>credit allowance date equal to the applicable percentage for the credit <br>allowance date multiplied by the purchase price paid for the qualified equity <br>investment; (b) Any tax credit that a taxpayer may not utilize during a particular year may be carried forward for use in any subsequent tax year; and (c) An insurance company claiming a tax credit against the insurance premium tax is not required to pay additional retaliatory tax levied pursuant to KRS <br>304.3-270. (3) No tax credit claimed under this section may be sold or transferred. Tax credits that a partnership, limited liability company, S corporation, or other pass-through entity <br>claims may be allocated to the partners, members, or shareholders of the entity for <br>their direct use in accordance with the provisions of any agreement among the <br>partners, members, or shareholders. (4) The total amount of tax credits that may be awarded by the department pursuant to KRS 141.432 to 141.434 shall be limited to five million dollars ($5,000,000) in <br>each fiscal year. Once the department has certified a cumulative amount of qualified <br>equity investments that can result in the utilization of this total amount of tax credits <br>in a fiscal year, the department may not certify any more qualified equity <br>investments. This limitation on qualified equity investments shall be based on <br>scheduled utilization of tax credits without regard to the potential for taxpayers to <br>carry forward tax credits to subsequent tax years. Effective: June 4, 2010 <br>History: Created 2010 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 18, effective June 4, 2010.
Page 1 of 1 141.434 New Markets Development Program tax credit. (1) There is hereby created a Kentucky New Markets Development Program tax credit. <br>(2) A person or entity that makes a qualified equity investment earns a vested right to the tax credit created by subsection (1) of this section. The amount of the credit <br>shall be equal to thirty-nine percent (39%) of the purchase price of the qualified <br>equity investment made by the person or entity claiming the credit. The tax credit <br>may be utilized as follows: <br>(a) The holder of the qualified equity investment on a particular credit allowance date of the qualified equity investment, whether it be the original purchaser or <br>subsequent holder of the qualified equity investment, may utilize a portion of <br>the tax credit against its tax liability for the taxable year that includes the <br>credit allowance date equal to the applicable percentage for the credit <br>allowance date multiplied by the purchase price paid for the qualified equity <br>investment; (b) Any tax credit that a taxpayer may not utilize during a particular year may be carried forward for use in any subsequent tax year; and (c) An insurance company claiming a tax credit against the insurance premium tax is not required to pay additional retaliatory tax levied pursuant to KRS <br>304.3-270. (3) No tax credit claimed under this section may be sold or transferred. Tax credits that a partnership, limited liability company, S corporation, or other pass-through entity <br>claims may be allocated to the partners, members, or shareholders of the entity for <br>their direct use in accordance with the provisions of any agreement among the <br>partners, members, or shareholders. (4) The total amount of tax credits that may be awarded by the department pursuant to KRS 141.432 to 141.434 shall be limited to five million dollars ($5,000,000) in <br>each fiscal year. Once the department has certified a cumulative amount of qualified <br>equity investments that can result in the utilization of this total amount of tax credits <br>in a fiscal year, the department may not certify any more qualified equity <br>investments. This limitation on qualified equity investments shall be based on <br>scheduled utilization of tax credits without regard to the potential for taxpayers to <br>carry forward tax credits to subsequent tax years. Effective: June 4, 2010 <br>History: Created 2010 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 18, effective June 4, 2010.
Page 1 of 1 141.434 New Markets Development Program tax credit. (1) There is hereby created a Kentucky New Markets Development Program tax credit. <br>(2) A person or entity that makes a qualified equity investment earns a vested right to the tax credit created by subsection (1) of this section. The amount of the credit <br>shall be equal to thirty-nine percent (39%) of the purchase price of the qualified <br>equity investment made by the person or entity claiming the credit. The tax credit <br>may be utilized as follows: <br>(a) The holder of the qualified equity investment on a particular credit allowance date of the qualified equity investment, whether it be the original purchaser or <br>subsequent holder of the qualified equity investment, may utilize a portion of <br>the tax credit against its tax liability for the taxable year that includes the <br>credit allowance date equal to the applicable percentage for the credit <br>allowance date multiplied by the purchase price paid for the qualified equity <br>investment; (b) Any tax credit that a taxpayer may not utilize during a particular year may be carried forward for use in any subsequent tax year; and (c) An insurance company claiming a tax credit against the insurance premium tax is not required to pay additional retaliatory tax levied pursuant to KRS <br>304.3-270. (3) No tax credit claimed under this section may be sold or transferred. Tax credits that a partnership, limited liability company, S corporation, or other pass-through entity <br>claims may be allocated to the partners, members, or shareholders of the entity for <br>their direct use in accordance with the provisions of any agreement among the <br>partners, members, or shareholders. (4) The total amount of tax credits that may be awarded by the department pursuant to KRS 141.432 to 141.434 shall be limited to five million dollars ($5,000,000) in <br>each fiscal year. Once the department has certified a cumulative amount of qualified <br>equity investments that can result in the utilization of this total amount of tax credits <br>in a fiscal year, the department may not certify any more qualified equity <br>investments. This limitation on qualified equity investments shall be based on <br>scheduled utilization of tax credits without regard to the potential for taxpayers to <br>carry forward tax credits to subsequent tax years. Effective: June 4, 2010 <br>History: Created 2010 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 18, effective June 4, 2010.
