KRS 154.34-120: Nonrefundable tax credit for reinvestment project by approved

company.

(1) Except as provided in subsection (5) of this section, for taxable years beginning

after December 31, 2009, an approved company may be eligible for a nonrefundable

credit of up to one hundred percent (100%) of the Kentucky income tax imposed

under KRS 141.020 or 141.040, and the limited liability entity tax imposed under

KRS 141.0401 that would otherwise be owed by the approved company to the

Commonwealth for the approved company's tax year, on the income, Kentucky

gross profits, or Kentucky gross recei pts of the approved company generated by or

arising from the reinvestment project.

(2) The credit allowed the approved company shall be applied against both the income

tax imposed by KRS 141.020 or 141.040, and the limited liability entity tax

imposed by KRS 141.0401, with credit ordering as provided in KRS 141.0205, for

the tax year for which the tax return of the approved company is filed. Any credit

not used in the year in which it was first available may be carried forward to

subsequent years, provided that no credit may be carried forward beyond the term of

the reinvestment agreement.

(3) The approved company shall not be required to pay estimated tax payments under

KRS 141.044 on the Kentucky taxable income, Kentucky gross receipts, or

Kentucky gross profits generated by or arising from the eligible project.

(4) The credit provided by this section shall be determined as provided in KRS

141.415.

(5) (a) For an approved company which receives preliminary approval prior to

February 1, 2010, the amount of i ncentives allowed in any year shall not

exceed the lesser of the tax liability of the approved company related to the

reinvestment project for that taxable year or the approved costs that have not

yet been recovered.

(b) For an approved company which recei ves preliminary approval on or after

February 1, 2010, the amount of incentives allowed in any year shall not

exceed the lesser of the tax liability of the approved company related to the

reinvestment project for that taxable year or twenty percent (20%) o f the total

amount of the approved costs.

(c) The incentives shall be allowed for each taxable year of the approved

company during the term of the reinvestment agreement for which a tax return

is filed by the approved company.