141.408 Inventory tax credit -- Applies on or after January 1, 2018 -- Pass-through
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/ky/141-408A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
entities, allowable credit -- Annual report.
(1)There shall be allowed a nonrefundable and nontransferable credit against the tax
imposed by KRS 141.020 or 141.040 and 141.0401, with the ordering of the credits
as provided in KRS 141.0205, for any taxpayer that, on or after January 1, 2018,
timely pays an ad valorem tax to the Commonwealth or any political subdivision
thereof for property described in KRS 132.020(1)(e) or 132.099.
(2)The credit allowed under subsection
(1)of this section shall be in an amount equal
to:
(a)Twenty-five percent (25%) of the ad valorem taxes timely paid for taxable
years beginning on or after January 1, 2018, and before January 1, 2019;
(b)Fifty percent (50%) of the ad valorem taxes timely paid for taxable years
beginning on or after January 1, 2019, and before January 1, 2020;
(c)Seventy-five percent (75%) of the ad valorem taxes timely paid for taxable
years beginning on or after January 1, 2020, and before January 1, 2021; and
(d)One hundred percent (100%) of the ad valorem taxes timely paid, for taxable
years beginning on or after January 1, 2021.
(3)If the taxpayer is a pass-through entity, the taxpayer may apply the credit against the
limited liability entity tax imposed by KRS 141.0401, and shall pass the credit
through to its members, partners, or shareholders in the same proportion as the
distributive share of income or loss is passed through.
(4)No later than October 1, 2019, and annually thereafter, the department shall report
to the Interim Joint Committee on Appropriations and Revenue:
(a)The name of each taxpayer taking the credit permitted by subsection
(1)of
this section;
(b)The location of the property upon which the credit was allowed; and
(c)The amount of credit taken by that taxpayer.