{"data":{"id":"us-ky/krs-141.391","jurisdiction":"us-ky","citation":"KRS 141.391","heading":"Nonrefundable tax credit for expansion of broadband services.","body":"(1) As used in this section:\n(a) \"Eligible equipment or services\" means the equipment used in the expansion\nof broadband services in Kentucky and includes:\n1. Wires, cables, fiber,  conduits, antennas, poles, switches, routers,\namplifiers, rectifiers, repeaters, receivers, multiplexers, transmitters,\ncircuit cards, insulating and protective materials and cases, power\nequipment, backup power equipment, diagnostic equipment, storage\ndevices, and modems;\n2. General central office or headend equipment, including:\na. Channel cards;\nb. Frames; and\nc. Cabinets;\n3. Equipment used in successor technologies, including items used to\nmonitor, test, maintain, enable, or facilitate:\na. Eligible equipment or services;\nb. Machinery;\nc. Software;\nd. Ancillary components;\ne. Appurtenances; and\nf. Accessories; and\n4. Any other infrastructure that is used in whole or in part to provide or\nexpand broadband communications services; and\n(b) \"Qualified broadband investment\":\n1. Means the purchase or lease of any eligible equipment or services by\nany provider that Kentucky sales and use tax has been paid under KRS\nChapter 139; and\n2. Does not include the purchase or lease of personal consumer electronics,\nincluding:\na. Smartphones;\nb. Computers;\nc. Tablets;\nd. Consumer-grade modems; and\ne. Routers.\n(2) For taxable years beginning on or after January 1, 2025, but before January 1, 2029,\nthere is hereby created a qualified broadband investment tax cred it to provide for\nthe expansion of broadband services in this state.\n(3) (a) The credit in subsection (2) of this section shall be nonrefundable,\nnontransferable, and allowed against the tax imposed under KRS 141.020 or\n141.040 and 141.0401 with the orderi ng of the credit as provided in KRS\n141.0205.\n(b) The tax credit shall be equal to the amount of sales tax actually paid on the\nqualified broadband investment:\n1. Reduced by the amount of seller reimbursement allowed under KRS\n139.570; and\n2. Limited to:\na. Fifty percent (50%) of the amount determined under subparagraph\n1. of this paragraph for a taxpayer; and\nb. A total of five million dollars ($5,000,000) for all tax credits in\neach taxable year in which the credit is available.\n(4) (a) Beginning with cal endar year 2025, any taxpayer who intends to take the\ncredit for a qualified broadband investment tax credit shall:\n1. Submit an application for approval to the department on a form\nprescribed by the department prior to December 31, 2025, and each\nDecember 31 thereafter as long as the credit is available; and\n2. Provide:\na. The taxpayer's identification number;\nb. The amount of sales and use tax that the taxpayer remitted or\nintends to remit for the qualified broadband investment; and\nc. A statement of how approval of this tax credit will result in greater\ninvestment in this state by:\ni. Expansion of broadband services;\nii. An upgrade to existing broadband infrastructure; or\niii. An increase of access to broadband for the residents in this\nstate.\n(b) The department shall:\n1. Review all submitted applications no later than January 15, 2026, and\neach January 15 thereafter as long as the credit is available; and\n2. By February 1 following the end of the calendar year, provide a letter to\nthe taxpayer indicating approval and amount of tax credit to be awarded.\n(5) A taxpayer approved for credit under subsection (4) of thi s section shall submit\nwith their return, verification of the sales and use tax remitted on the qualified\nbroadband investment, which may include:\n(a) Receipt of eligible equipment or services purchased; or\n(b) Lease agreement for eligible equipment or services.\n(6) If the total amount of credits granted approval under subsection (4) of this section\nexceeds five million dollars ($5,000,000), each taxpayer shall receive no more than\nits applicable pro rata share of the five million dollar ($5,000,000) limit.\n(7) (a) In order for the General Assembly to evaluate the effectiveness of the\nqualified broadband investment tax credit, the department shall submit the\nfollowing information to the Legislative Research Commission for referral to\nthe Interim Joint Commit tee on Appropriations and Revenue on or before\nNovember 1, 2026, and on or before each November 1 thereafter as long as\nthe credit may be claimed on a return:\n1. The location of the taxpayer, by county, as reflected on the return filed\nfor the taxable year;\n2. The amount of qualified broadband investment tax credit claimed by the\ntaxpayer for the taxable year;\n3. The total cumulative amount of all qualified broadband investment tax\ncredits claimed for the taxable year; and\n4. a. In the case of all taxpayers  other than corporations, based on\nranges of adjusted gross income of no larger than five thousand\ndollars ($5,000) for the taxable year, the total amount of qualified\nbroadband investment tax credit claimed and the total number of\nreturns claiming this tax credit for each income range; and\nb. In the case of all corporations, based on ranges of net income no\nlarger than fifty thousand dollars ($50,000) for the taxable year,\nthe total amount of tax credit claimed and the number of returns\nclaiming a tax credit for each net income range.\n(b) The information required to be reported under this section 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=55402","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:35Z","sha256":"d1126f84308a8e9c764605ba052c487ff95354c8e0576681bf0cba4dcfc43667","source_id":"us-ky","stale":false,"prev":"us-ky/krs-141.390","next":"us-ky/krs-141.392"},"notice":"GroundRules: Original legal text. Not legal advice."}