141.384 Nonrefundable tax credit for small businesses.

224 words·~1 min read·/ky/chapter-141/141-384

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)As used in this section, "small business" has the same meaning as in KRS 154.60-

010.

(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.