{"data":{"id":"us-ky/krs-141.396","jurisdiction":"us-ky","citation":"KRS 141.396","heading":"Nonrefundable angel investor tax credit against individual income tax --","body":"Carry forward -- Transfer of credit -- Recapture of credit -- Data reporting\nrequirements.\n(1) As used in this section:\n(a) \"Authority\" has the same meaning as in KRS 154.20-230;\n(b) \"Qualified investor\" has the same meaning as in KRS 154.20-230;\n(c) \"Qualified small business\" has the same meaning as in KRS 154.20-230; and\n(d) \"Taxpayer\" means an individual subject to the tax imposed by KRS 141.020,\nwho has either:\n1. Received a credit from the authority pursuant to KRS 154.20-236; or\n2. Received a credit through a valid transfer allowed under this section\nfrom a qualified investor that was originally awarded the credit.\n(2) For taxable years beginning on or after Janua ry 1, 2015, there is hereby created the\nangel investor tax credit. The credit shall be nonrefundable, and shall apply against\nthe tax imposed by KRS 141.020. The ordering of the credit shall be as provided in\nKRS 141.0205.\n(3) A qualified investor may seek a credit by applying to the authority pursuant to KRS\n154.20-236.\n(4) The maximum amount of credit that may be claimed by a taxpayer in any taxable\nyear shall not exceed fifty percent (50%) of the total amount of credit awarded or\ntransferred to the taxpayer.\n(5) Any amount of credit that a taxpayer is unable to utilize during a taxable year may\nbe carried forward for use in a succeeding taxable year for a period not to exceed\nfifteen (15) years. Any amount of credit not used within fifteen (15) years shal l be\nlost. No amount of credit may be carried back by any taxpayer.\n(6) The credit shall not apply to any liability a taxpayer may have for interest, penalties,\npast due taxes, or any other additions to the taxpayer's tax liability. The holder of\nthe credit shall assume any and all liabilities and responsibilities of the credit.\n(7) A credit may be transferred by a qualified investor to any individual taxpayer. A\nqualified investor making a transfer shall give written notice to the department and\nshall provide any other information required by the department, in the manner\nprescribed by the department. Any transferred credit shall be subject to the original\ntimeframes and requirements established by this section and KRS 154.20 -230 to\n154.20-240 as if held by the qualified investor.\n(8) To receive the credit, a taxpayer shall claim the credit on his or her return in the\nmanner prescribed by the department.\n(9) The department shall recapture any portion, or the full amount, of a credit upon\nnotification from the authority that a recapture is required pursuant to KRS 154.20 -\n240.\n(10) In order for the General Assembly to evaluate the fulfillment of the purposes stated\nin KRS 154.20 -232, the department and the Cabinet for Economic Development\nshall work jointly to submit the following information to the Interim Joint\nCommittee on Appropriatio ns and Revenue on or before May 1, 2019, and each\nMay 1 thereafter, related to each taxable year that an angel investor credit is claimed\non a return:\n(a) The number of qualified small businesses certified by the authority;\n(b) The demographics of each qualified small business, including:\n1. The net worth of the qualified small business;\n2. The qualified activity the qualified small business is actively and\nprincipally engaged in within the Commonwealth;\n3. The number of employees of the qualified small business;\n4. The location of the assets, operations, and employees of the qualified\nsmall business; and\n5. The aggregate amount of qualified investments received by the qualified\nsmall business;\n(c) A list detailing each qualified investor certified by the authority, the amount of\ninvestment made by each qualified investor, the date each qualified\ninvestment is made by the qualified investor, and the amount of tax credit\nawarded each investor;\n(d) By taxable year, the amount of tax credit claimed by each inves tor and the\namount of credit available to be claimed in future taxable years;\n(e) The number of qualified small businesses that are active, inactive, or closed\nthat have received qualified investments;\n(f) The number of qualified small businesses that have  established a location in\nthe Commonwealth and the number that have expanded operations, the\nnumber and location of each new job created, a description of each\ndevelopment of new products and technologies in the Commonwealth, and the\nfield of operation fo r that growth, including knowledge -based, high-tech, or\nresearch and development; and\n(g) The total amount of tax credit awarded for each fiscal year.\n(11) If either the department or the Cabinet for Economic Development does not\ncurrently have the data to fulfill the reporting requirement of subsection (10) of this\nsection, the department and the cabinet shall work jointly to obtain the data in an\nexpedient manner to provide the report on or before the May 1, 2019, report date.","path":["KRS Chapter 141"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=51575","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:35Z","sha256":"dae48cd1d4f3fb4b8da32cc8997fef63aa1ac50074b3693a7e671a1ee657ec84","source_id":"us-ky","stale":false,"prev":"us-ky/krs-141.395","next":"us-ky/krs-141.398"},"notice":"GroundRules: Original legal text. Not legal advice."}