KRS 154.20-240: Annual report by small businesses.

(1) On or before February 1 of the calendar year succeeding the year in which a credit

was awarded, and continuing for four (4) years thereafter, a qualified small business

that has received a qualified investment shall file an annual report with the

authority.

(2) (a) This report shall demonstrate that the small business:

1. Continues to have more than fifty percent (50%) of its assets, operations,

and employees in the Commonwealth;

2. Has at no time received an aggregate amount of qualified investments

that h as allowed qualified investors to receive more than one million

dollars ($1,000,000) in credits; and

3. Continues to be actively and principally engaged in a qualified activity.

(b) The report shall also provide additional information related to the succes s of

the small business attributable to the investment, including but not limited to:

1. New jobs created;

2. Increased sales or other economic activity conducted;

3. The degree of other private investment attracted; and

4. Any other information requested by the authority.

(3) If a qualified small business either:

(a) Fails to submit the report mandated by this section in any year; or

(b) Fails to meet any of the criteria listed in subsection (2)(a) of this section at any

time during any year of the reporting period;

the authority shall notify the department, which shall recapture any portion, or the

full amount, of the credit awarded for qualified investments in that qualifie d small

business from the qualified investor that received the credit award or any taxpayer

receiving the credit through a valid transfer. Any amounts collected from the

recapture shall be deposited in the general fund.

(4) If a qualified small business be comes insolvent and ceases operations at any time

before the final required annual report is due, it shall file a written report with the

authority attesting to that fact and shall thereafter be exempt from the annual report

required by this section, and c redits awarded and already claimed for qualified

investments in that qualified small business shall not be subject to any recapture.

Any credits not claimed as of the date the company became insolvent and ceased

operations shall be considered expired and shall not be claimed.