KRS 154.60-020: Small Business Development Credit Program -- Application

requirements -- Maximum credits permitted.

(1) The authority shall develop a Small Business Development Credit Program in

consultation with the Office of Entrepreneurship and Innova tion to assist new or

existing small businesses operating in the Commonwealth. The nonrefundable

credit shall be allowed against the taxes imposed by KRS 141.020 or 141.040, and

141.0401. The ordering of credits shall be as provided in KRS 141.0205.

(2) The authority shall determine the terms, conditions, and requirements for

application for the credit, in consultation with the Office of Entrepreneurship and

Innovation, subject to the provisions of subsection (3) of this section. The

application shall conta in identification information about the number of eligible

positions created and filled, a calculation of the base employment of the small

business, verification of investment of five thousand dollars ($5,000) or more in

qualifying equipment or technology, and other information the authority may

specify to determine eligibility for the credit.

(3) (a) The maximum amount of credits that may be committed in each fiscal year by

the authority and shared between the small business tax credit program and

the Selling Farmer Tax Credit Program shall be capped at three million dollars

($3,000,000).

(b) In order to be eligible to receive final approval for a credit, a small business

shall, within the twenty -four (24) month period immediately preceding the

application submission date:

1. Create and fill one (1) or more eligible positions over the base

employment; and

2. Invest five thousand dollars ($5,000) or more in qualifying equipment or

technology.

(c) Each eligible position that is created and filled shall be main tained for twelve

(12) months. If a full -time employee filling a newly created eligible position

ceases to be employed by the small business for any reason, that employee

shall be replaced within forty -five (45) days in order for the eligible position

to m aintain its eligible status, in addition to meeting all other applicable

requirements.

(d) The small business shall submit all information necessary for the authority to

determine credit eligibility for each year, and the amount of credit for which

the small business is eligible.

(e) The maximum amount of credit for each small business for each year shall not

exceed twenty-five thousand dollars ($25,000).

(f) The credit shall be claimed on the tax return for the year during which the

credit was approved. Unused credits may be carried forward for up to five (5)

years.