{"data":{"id":"us-ky/krs-141.065","jurisdiction":"us-ky","citation":"KRS 141.065","heading":"Tax credit for hiring person classified as unemployed -- Annual report.","body":"(1) For the purposes of this section, \"code\" or \"Internal Revenue Code\" means the\nInternal Revenue Code in effect as of December 31, 1981.\n(2) For taxable years beginni ng before January 1, 2028, there shall be allowed as a\ncredit for any taxpayer against the tax imposed by KRS 141.020 or 141.040 and\n141.0401 for any taxable year, with the ordering of the credits as provided in KRS\n141.0205, an amount equal to one hundred  dollars ($100) for each person hired by\nthe taxpayer, if that person has been classified as unemployed by the Office of\nUnemployment Insurance in the Education and Labor Cabinet and has been so\nclassified for at least sixty (60) days prior to his employment by the taxpayer, and if\nfurther that person has remained in the employ of the taxpayer for at least one\nhundred eighty (180) consecutive days during the taxable year in which the\ntaxpayer claims the credit.\n(3) No credit shall be allowed to any taxpayer  for any person hired under any of the\nfollowing circumstances:\n(a) A person for whom the taxpayer receives federally funded payments for on -\nthe-job training;\n(b) For any person who bears any of the relationships to the taxpayer described in\nparagraphs (1) through (8) of Section 152(a) of the Internal Revenue Code, or,\nif the taxpayer is a corporation, to an individual who owns, directly or\nindirectly, more than fifty percent (50%) in value of the outstanding stock of\nthe corporation as determined with the application of Section 267(c) of the\ncode;\n(c) If the taxpayer is an estate or trust, to any person who is a grantor, beneficiary,\nor fiduciary of the estate or trust, or is an individual who bears any of the\nrelationships described in paragraphs (1) throu gh (8) of Section 152(a) of the\ncode to a grantor, beneficiary, or fiduciary of the estate or trust; or\n(d) To any person who is a dependent of the taxpayer as described in code\nSection 152(a)(9), or, if the taxpayer is an estate or trust, of a grantor,\nbeneficiary, or fiduciary of the estate or trust.\n(4) For purposes of this section, all employees of all corporations which are members\nof the same controlled group of corporations shall be treated as employed by a\nsingle employer. In no instance shall the c redit, if any, allowable by subsection (2)\nof this section for any employee qualified thereunder be claimed more than once for\nany taxable year by such a controlled group of corporations. For purposes of this\nsubsection, the term \"controlled group of corpo rations\" has the meaning given to\nthat term by code Section 1563(a), except that \"more than fifty percent (50%)\" shall\nbe substituted for \"at least eighty percent (80%)\" each place it appears in code\nSection 1563(a)(1), and the determination shall be made without regard to\nsubsections (a)(4) and (e)(3)(c) of code Section 1563.\n(5) For purposes of this section, all employees of trades or businesses (whether or not\nincorporated) which are under common control shall be treated as employed by a\nsingle employer, and in no instance shall the credit, if any, allowable by subsection\n(2) of this section for any employee qualified thereunder be claimed more than once\nfor any taxable year.\n(6) No credit shall be allowed under subsection (2) of this section to any organ ization\nwhich is exempt from income tax by this chapter.\n(7) In the case of a pass -through entity, the amount of the credit determined under this\nsection for any taxable year shall be applied at the entity level against the limited\nliability entity tax imposed by KRS 141.0401 and shall also be apportioned pro rata\namong the members, partners, or shareholders of the limited liability entity on the\nlast day of the taxable year, and any person to whom an amount is so apportioned\nshall be allowed, subject to code Section 53, a credit under subsection (2) of this\nsection for that amount.\n(8) In the case of an estate or trust, the amount of the credit determined under this\nsection for any taxable year shall be apportioned between the estate or trust and the\nbeneficiaries on the basis of income of the estate or trust allocable to  each, and any\nbeneficiary to whom any amount has been apportioned under this subsection shall\nbe allowed, subject to code Section 53, a credit under subsection (2) of this section\nfor that amount.\n(9) In no event shall the credit allowed, pursuant to this  section, for any taxable year\nexceed the tax liability of the taxpayer for the taxable year.\n(10) (a) By November 1, 2026, and each November 1 thereafter as long as credit is\nclaimed under this section, the department shall report to the Legislative\nResearch Commission for referral to the Interim Joint Committee on\nAppropriations and Revenue:\n1. The total number of returns claiming the credit for the taxable year;\n2. The total amount of credit claimed for the taxable year;\n3. By county, the total number of  unemployed persons hired for which\ncredit is claimed for the taxable year;\n4. By taxpayer:\na. The name and location of the taxpayer claiming the credit as listed\non the tax return;\nb. The total number of tax credits claimed for the taxable year;\nc. The total amount of credit claimed for the taxable year; and\nd. The total number of unemployed persons hired in which credit is\nclaimed for the taxable year; and\n5. a. In the case of taxpayers other than corporations, based on ranges\nof adjusted gross income of no larger than five thousand dollars\n($5,000) for the taxable year, the total amount of credit claimed\nand the total number of returns claiming this credit for each\nadjusted gross income range.\nb. In the case of corporations, based on ranges of net income of no\nlarger than fifty thousand dollars ($50,000) for the taxable year,\nthe total amount of credit claimed and the total number of returns\nclaiming this credit for each net income range.\n(b) The Office of Unemployment Insurance shall assist by providing t he\ndepartment with the information necessary to help fulfill the requirements\nunder this subsection.\n(c) The information required to be reported under this subsection shall not be\nconsidered confidential taxpayer information and shall not be subject to KRS\nChapter 131 or any other provisions of the Kentucky Revised Statutes\nprohibiting disclosure or reporting of information.","path":["KRS Chapter 141"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57943","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:34Z","sha256":"efde94f1fa9c87ffd16baba2035addd25e53c45a2654e0a30cd5b12ed2b4f5f7","source_id":"us-ky","stale":false,"prev":"us-ky/krs-141.063","next":"us-ky/krs-141.066"},"notice":"GroundRules: Original legal text. Not legal advice."}