KRS 141.070: Credits allowed individuals for tax paid to other states.

(1) Whenever an individual who is a resident of this state has become liable for income

tax to another state upon all or any part of the individual's net income for the

taxable year, derived from sources without this state and subject to taxation under

this chapter, the amount of income tax payable under this chapter shall be credited

on the return with the income tax paid to the other state, upon producing to the

proper assessing officer satisfactory evidence of the fact of the payment, except that

application of any credits shall not operate to reduce the tax payable under this

chapter to an amount less than would have been payable were the income from the

other state ignored.

(2) An individual who is not a resident of this state shall not be liable for any in come

tax under KRS 141.020(4) if the laws of the state of which the individual was a

resident at the time the income was earned in this state contained a reciprocal

provision under which nonresidents were exempted from gross or net income taxes

to the othe r state, if the state of residence of the nonresident individual allowed a

similar exemption to resident individuals of this state. The exemption authorized by

this subsection shall in no manner preclude the department from requiring any

information reports under KRS 141.150(2).

(3) As used in this section, "state" means a state of the United States, the District of

Columbia, the commonwealth of Puerto Rico, or any territory or possession of the

United States.

(4) Any resident entity owner of an electing en tity, as those terms are defined in KRS

141.209, doing business in another state in which the tax is assessed and paid at the

entity level shall be allowed a credit in accordance with subsection (1) of this

section. The credit shall be based on the entity owner's distributive share of the

electing entity's items of income, loss, deduction, and credit.