KRS 141.434: New Markets Development Program tax credit.

(1) There is hereby created a Kentucky New Markets Development Program tax credit.

(2) A person or entity that makes a qualified equity investment earns a vested right to

the tax credit created by subsection (1) of this section. The amount of the credit

shall be equal to thirty -nine percent (39%) of the purchase price of the qualified

equity investment made by the person or entity claiming the credit. The tax credit

may be utilized as follows:

(a) The holder of the qualified equity investment on a particular cr edit allowance

date of the qualified equity investment, whether it be the original purchaser or

subsequent holder of the qualified equity investment, may utilize a portion of

the tax credit against its tax liability for the taxable year that includes the

credit allowance date equal to the applicable percentage for the credit

allowance date multiplied by the purchase price paid for the qualified equity

investment;

(b) Any tax credit that a taxpayer may not utilize during a particular year may be

carried forward for use in any subsequent tax year; and

(c) An insurance company claiming a tax credit against the insurance premium

tax is not required to pay additional retaliatory tax levied pursuant to KRS

304.3-270.

(3) No tax credit claimed under this section ma y be sold or transferred. Tax credits that

a partnership, limited liability company, S corporation, or other pass -through entity

claims may be allocated to the partners, members, or shareholders of the entity for

their direct use in accordance with the pro visions of any agreement among the

partners, members, or shareholders.

(4) The total amount of tax credits that may be awarded by the department pursuant to

KRS 141.432 to 141.434 shall be limited to ten million dollars ($10,000,000) in

each fiscal year. Once the department has certified a cumulative amount of qualified

equity investments that can result in the utilization of this total amount of tax credits

in a fiscal year, the department may not certify any more qualified equity

investments. This limitat ion on qualified equity investments shall be based on

scheduled utilization of tax credits without regard to the potential for taxpayers to

carry forward tax credits to subsequent tax years.