{"data":{"id":"us-ky/krs-141.412","jurisdiction":"us-ky","citation":"KRS 141.412","heading":"Tax credit for qualified farming operation -- Annual report.","body":"(1) For taxable years beginning before January 1, 2028, a qualified farming operation\nshall be entitled to a nonrefundable credit against the Kentucky income tax liability\nestablished pursuant to the provisions of this chapter on any income of the qualified\nfarming operation generated by or arising out of the qualified farming operation's\nparticipation in a networking project, and against the limited liability entity tax\nimposed by K RS 141.0401 on any Kentucky gross profits or Kentucky gross\nreceipts of the qualified farming operation generated by or arising out of the\nqualified farming operation's participation in a networking project. The credits shall\nbe applied as provided in KRS 141.0205. The annual credit shall be available for\nthe first five (5) years that the farming operation is involved in the networking\nproject. The annual credit shall be equal to the approved costs incurred by the\nqualified farming operation during the tax year and shall not exceed the income,\nKentucky gross profits or Kentucky gross receipts, as the case may be, of the\nqualified farming operation generated by or arising out of the qualified farming\noperation's participation in a networking project.\n(2) Any credit not used in the tax year in which it first becomes available may be\ncarried forward to the next succeeding five (5) tax years until the credit has been\nfully used. The aggregate credit used in any tax year shall not exceed the income,\nKentucky gross  profits or Kentucky gross receipts, as the case may be, of the\nqualified farming operation generated by or arising out of the qualified farming\noperation's participation in a networking project in that tax year.\n(3) (a) By November 1, 2026, and each Novem ber 1 thereafter as long as a qualified\nfarming operation credit is claimed under this section, the department shall\nreport to the Legislative Research Commission for referral to the Interim Joint\nCommittee on Appropriations 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 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;\nd. The name and location, by county, of the networking project;\ne. Type of food or product produced; and\nf. Type of raw materials prov ided for food -producing facilities in\nthis state; and\n4. 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 cl aimed and the total number of returns\nclaiming this credit for each net income range.\n(b) The Cabinet for Economic Development shall assist by providing the\ndepartment with information on the approved farming operations or\nnetworking projects to help fulfill the requirements under 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 Revis ed Statutes\nprohibiting disclosure or reporting of information.","path":["KRS Chapter 141"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57944","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:35Z","sha256":"ad72300d414584c070db07bb9644a1c9f383cf5880d30079e8ed5fe5ab1c40c4","source_id":"us-ky","stale":false,"prev":"us-ky/krs-141.410","next":"us-ky/krs-141.414"},"notice":"GroundRules: Original legal text. Not legal advice."}