141.4246 Ethanol or cellulosic ethanol credit distribution for pass-through entities.

259 words·~1 min read·/ky/chapter-141/141-4246

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

(1)An ethanol producer or a cellulosic ethanol producer that is a pass-through entity

not subject to tax under KRS 141.040 shall apply the amount of approved credit

against the tax imposed by KRS 141.0401 at the entity level, and shall also

distribute the amount of the approved credit to each partner, member, shareholder,

or beneficiary based on the partner's, member's, shareholder's, or beneficiary's

distributive share of the income of the pass-through entity.

(2)Each ethanol producer or cellulosic ethanol producer shall notify the department

electronically of all partners, members, shareholders, or beneficiaries who may

claim any amount of the approved credit. Failure to provide information to the

department in a manner prescribed by administrative regulation may result in the

forfeiture of available credits to all partners, members, shareholders, or beneficiaries

in the pass-through entity.

(3)An agricultural cooperative association organized under KRS Chapter 272 or 272A

may elect to apportion pro rata any amount of the approved credit among the

members of the association and, if a limited cooperative association, among patron

members only, on the basis of the quantity or value of business done with or for

such members for the taxable year. The agricultural cooperative association shall

notify the department electronically of all members who may claim any amount of

the approved credit if the election is made.

(4)Failure to provide information to the department in a manner prescribed by

administrative regulation may result in the forfeiture of available credits to all

partners, members, shareholders, or beneficiaries in the pass-through entity or

agricultural cooperative association.