KRS 141.3841: Selling farmer tax credit -- Report.

(1) The selling farmer tax credit permitted by KRS 154.60-040:

(a) Shall be nonrefundable and nontransferable; and

(b) May be claimed against the taxes imposed in KRS 141.020 or 141.040 and

141.0401, with the ordering of the credit as provided in KRS 141.0205.

(2) (a) The maximum amount of credit that may be claimed by a seller in each

taxable year is limited to:

1. No more than the total amount of credit approved by the Kentucky

Economic Development Finance Authority;

2. Twenty-five thousand dollars ($25,000) cap for each taxable year of the

seller when agricultural assets are sold to an actively engaged farmer

who does not meet the definition of a beginning farmer;

3. Fifty thousand dollars ($50,000) cap for each taxable year of the seller

when agricultural assets are sold to a beginning farmer;

4. One hundred thousand dollars ($100,000) lifetime cap for each seller

selling to an actively engaged farmer; and

5. Two hundred thousand dollars ($200,000) lifetime cap for each seller

selling to a beginning farmer.

(b) The credit shall be first claimed on the tax return for the taxable year during

which the credit was approved.

(c) Any unused credit in a taxable year may be carried forward for up to five (5)

taxable years and, if not utilized within the five (5) year period, shall be lost.

(3) In order for the General Assembly to evaluate the fulfillment of the purpose stated

in KRS 154.60 -040, the department shall provide the following information, on a

cumulative basis, for each seller, for each taxable year:

(a) The location, by county, of the agricultura l assets sold to an actively engaged

farmer or a beginning farmer and approved for a tax credit under KRS 154.60-

040;

(b) The total amount of tax credit approved by the Kentucky Economic

Development Finance Authority for each seller;

(c) The amount of tax credit claimed for each seller in each taxable year; and

(d) 1. In the case of all taxpayers other than corporations, based on ranges of

adjusted gross income of no larger than five thousand dollars ($5,000)

for the taxable year, the total amount of tax cr edits claimed and the

number of returns claiming a tax credit for each adjusted gross income

range; and

2. In the case of all corporations, based on ranges of net income no larger

than fifty thousand dollars ($50,000) for the taxable year, the total

amount of tax credit claimed and the number of returns claiming a tax

credit for each net income range.

(4) The report required by subsection (3) of this section shall be submitted to the

Interim Joint Committee on Appropriations and Revenue beginning no later t han

November 1, 2021, and no later than each November 1 thereafter, as long as the

credit is claimed on any return processed by the department.