KRS 154.12-2086: Skills training investment credit -- Department of Revenue

certification.

(1) The Bluegrass State Skills Corporation may, in accordance with KRS 154.12 -2084

to 154.12-2089, award a credit against the Kentucky tax imposed by KRS 141.020

or 141.040, and KRS 141.0401, to an approved company. The amount of the skills

training investment credit awarded by the Bluegrass State Skills Corporation shall

be an amount equal to fifty percent (50%) of the amount of approved costs incurred

by the approved compan y in connection with its program of occupational upgrade

training or skills upgrade training, the credit amount not to exceed five hundred

dollars ($500) per employee and, in the aggregate, not to exceed one hundred

thousand dollars ($100,000) for each app roved company per biennium. The

Bluegrass State Skills Corporation shall only approve one (1) application per

biennium for each qualified company.

(2) The skills training investment credit shall be credited on the tax return of the

approved company filed f or the fiscal year during which the final authorizing

resolution is adopted by the Bluegrass State Skills Corporation in accordance with

KRS 154.12 -2088(6). The skill training investment credits allowed under KRS

154.12-2084 to 154.12 -2089 shall only be us ed by the approved company that has

been awarded the credits in accordance with KRS 154.12-2084 to 154.12-2089. The

skills training investment credits provided for in this section shall be applied to both

the income tax imposed by KRS 141.020 or 141.040, a nd the limited liability entity

tax imposed by KRS 141.0401, with the ordering of the credits as provided in KRS

141.0205. These credits shall be in addition to all other tax credits granted under the

laws of the Commonwealth.

(3) The skills training inves tment credits may be carried forward for three (3)

successive fiscal years of the approved company if the amount allowable as credits

exceeds the income tax liability of the approved company in the tax year during

which the final authorizing resolution is adopted by the Bluegrass State Skills

Corporation; however, thereafter, if the amount allowable as credits exceeds the

income tax liability of the approved company, the excess credits shall not be

refundable or carried forward to any other fiscal year of t he approved company for

which a tax return of the approved company is to be filed.

(4) A qualified company shall not be entitled to receive the skills training investment

credits if the qualified company requires that the employee reimburse the employer

or otherwise pay for any costs or expenses incurred in connection with the

occupational upgrade training or skills upgrade training.

(5) To the extent that any expenditures of a qualified company constitute approved

costs and are the basis for the skills tra ining investment credits under KRS 154.12 -

2084 to 154.12-2089, these expenditures shall not be eligible as the basis for grants-

in-aid under Bluegrass State Skills Corporation provisions in KRS 154.12 -204 to

154.12-208 or the Local Government Economic Deve lopment Program under the

provisions of KRS 42.4588 to 42.4595.

(6) Priority consideration for preliminary approval under KRS 154.12 -2088 shall be

given to qualified companies that the Bluegrass State Skills Corporation determines

to be high performance co mpanies. A minimum of thirty percent (30%) of the total

skills training investment credits authorized by the Bluegrass State Skills

Corporation during any fiscal year shall be awarded to qualified companies that

have been designated as high performance com panies by the Bluegrass State Skills

Corporation. The Bluegrass State Skills Corporation shall establish guidelines and

standards for the designation of high performance companies.

(7) By October 1 of each year, the Department of Revenue shall certify to the Bluegrass

State Skills Corporation the amount of any skills training investment credits taken

pursuant to KRS 154.12 -2084 to 154.12 -2089 on tax returns filed during the fiscal

year ending June 30 of that year.