KRS 141.405: Tax credit for company approved for occupational or skills upgrade

training program under KRS 154.12 -2084 to 154.12 -2089 -- Administrative

regulations.

(1) As used in this section, unless the context requires otherwise:

(a) "Approved company" has the same meaning as set forth in KRS 154.12-2084;

(b) "Skills training investment credit" has the same meaning as set forth in KRS

154.12-2084;

(c) "Kentucky gross receipts" means Kentucky gross receipts as defined in KRS

141.0401; and

(d) "Kentucky gro ss profits" means Kentucky gross profits as defined in KRS

141.0401.

(2) An approved company shall determine the tax credit as provided in this section.

(3) (a) An approved company which is an individual sole proprietorship subject to

tax under KRS 141.020 or a corporation or pass -through entity treated as a

corporation for federal income tax purposes subject to tax under KRS 141.040

shall:

1. Compute the tax due at the applicable tax rates as provided by KRS

141.020 or 141.040 on net income or taxable net income;

2. Compute the limited liability entity tax imposed under KRS 141.0401 on

Kentucky gross profits or Kentucky gross receipts; and

3. Add the amounts computed under subparagraphs 1. and 2. of this

paragraph and, if applicable, subtract the credit pe rmitted by KRS

141.0401(3) from that sum. The resulting amount shall be the net tax for

purposes of this subsection;

(b) The amount of the skills training investment credit that the Bluegrass State

Skills Corporation has given final approval for under KRS 154.12-2088(6)

shall be applied against the net tax computed under paragraph (a)3. of this

subsection; and

(c) The skills training investment credit payment shall not exceed the amount of

the final approval awarded by the Bluegrass State Skills Corporation under

KRS 154.12-2088(6).

(4) (a) In the case of an approved company which is a pass -through entity not subject

to the tax imposed by KRS 141.040, the amount of the tax credit awarded by

the Bluegrass State Skills Corporation in KRS 154.12 -2088(6) shall be taken

against the tax imposed by KRS 141.0401 by the approved company, and shall

also be apportioned among th e partners, members, or shareholders thereof at

the same ratio as the partners', members', or shareholders' distributive shares

of income are determined for the tax year during which the final authorization

resolution is adopted by the Bluegrass State Skil ls Corporation in KRS

154.12-2088(6).

(b) The amount of the tax credit apportioned to each partner, member, or

shareholder that may be claimed in any tax year of the partner, member, or

shareholder shall be determined in accordance with the provisions of K RS

154.12-2086.

(5) (a) In the case of an approved company that is a trust not subject to the tax

imposed by KRS 141.040, the amount of the tax credit awarded by the

Bluegrass State Skills Corporation in KRS 154.12 -2088(6) shall be

apportioned to the trust and the beneficiaries on the basis of the income of the

trust allocable to each for the tax year during which the final authorizing

resolution is adopted by the Bluegrass State Skills Corporation in KRS

154.12-2088(6).

(b) The amount of tax credit apporti oned to each trust or beneficiary that may be

claimed in any tax year of the trust or beneficiary shall be determined in

accordance with the provisions of KRS 154.12-2086.

(6) The Department of Revenue may promulgate administrative regulations in

accordance with KRS Chapter 13A adopting forms and procedures for the reporting

of the credit allowed in KRS 154.12-2084 to 154.12-2089.