KRS 141.412: Tax credit for qualified farming operation -- Annual report.

(1) For taxable years beginning before January 1, 2028, a qualified farming operation

shall be entitled to a nonrefundable credit against the Kentucky income tax liability

established pursuant to the provisions of this chapter on any income of the qualified

farming operation generated by or arising out of the qualified farming operation's

participation in a networking project, and against the limited liability entity tax

imposed by K RS 141.0401 on any Kentucky gross profits or Kentucky gross

receipts of the qualified farming operation generated by or arising out of the

qualified farming operation's participation in a networking project. The credits shall

be applied as provided in KRS 141.0205. The annual credit shall be available for

the first five (5) years that the farming operation is involved in the networking

project. The annual credit shall be equal to the approved costs incurred by the

qualified farming operation during the tax year and shall not exceed the income,

Kentucky gross profits or Kentucky gross receipts, as the case may be, of the

qualified farming operation generated by or arising out of the qualified farming

operation's participation in a networking project.

(2) Any credit not used in the tax year in which it first becomes available may be

carried forward to the next succeeding five (5) tax years until the credit has been

fully used. The aggregate credit used in any tax year shall not exceed the income,

Kentucky gross profits or Kentucky gross receipts, as the case may be, of the

qualified farming operation generated by or arising out of the qualified farming

operation's participation in a networking project in that tax year.

(3) (a) By November 1, 2026, and each Novem ber 1 thereafter as long as a qualified

farming operation credit is claimed under this section, the department shall

report to the Legislative Research Commission for referral to the Interim Joint

Committee on Appropriations and Revenue:

1. The total number of returns claiming the credit for the taxable year;

2. The total amount of credit claimed for the taxable year;

3. By taxpayer:

a. The name and location of the taxpayer claiming the credit as listed

on the tax return;

b. The total number of tax credits claimed for the taxable year;

c. The total amount of credit claimed for the taxable year;

d. The name and location, by county, of the networking project;

e. Type of food or product produced; and

f. Type of raw materials prov ided for food -producing facilities in

this state; and

4. a. In the case of 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 credit claimed

and the total number of returns claiming this credit for each

adjusted gross income range.

b. In the case of corporations, based on ranges of net income of no

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

the total amount of credit cl aimed and the total number of returns

claiming this credit for each net income range.

(b) The Cabinet for Economic Development shall assist by providing the

department with information on the approved farming operations or

networking projects to help fulfill the requirements under this subsection.

(c) The information required to be reported under this subsection shall not be

considered confidential taxpayer information and shall not be subject to KRS

Chapter 131 or any other provisions of the Kentucky Revis ed Statutes

prohibiting disclosure or reporting of information.