{"data":{"id":"us-ky/krs-141.434","jurisdiction":"us-ky","citation":"KRS 141.434","heading":"New Markets Development Program tax credit.","body":"(1) There is hereby created a Kentucky New Markets Development Program tax credit.\n(2) A person or entity that makes a qualified equity investment earns a vested right to\nthe tax credit created by subsection (1) of this section. The amount of the credit\nshall be equal to thirty -nine percent (39%) of the purchase price of the qualified\nequity investment made by the person or entity claiming the credit. The tax credit\nmay be utilized as follows:\n(a) The holder of the qualified equity investment on a particular cr edit allowance\ndate of the qualified equity investment, whether it be the original purchaser or\nsubsequent holder of the qualified equity investment, may utilize a portion of\nthe tax credit against its tax liability for the taxable year that includes the\ncredit allowance date equal to the applicable percentage for the credit\nallowance date multiplied by the purchase price paid for the qualified equity\ninvestment;\n(b) Any tax credit that a taxpayer may not utilize during a particular year may be\ncarried forward for use in any subsequent tax year; and\n(c) An insurance company claiming a tax credit against the insurance premium\ntax is not required to pay additional retaliatory tax levied pursuant to KRS\n304.3-270.\n(3) No tax credit claimed under this section ma y be sold or transferred. Tax credits that\na partnership, limited liability company, S corporation, or other pass -through entity\nclaims may be allocated to the partners, members, or shareholders of the entity for\ntheir direct use in accordance with the pro visions of any agreement among the\npartners, members, or shareholders.\n(4) The total amount of tax credits that may be awarded by the department pursuant to\nKRS 141.432 to 141.434 shall be limited to ten million dollars ($10,000,000) in\neach fiscal year. Once the department has certified a cumulative amount of qualified\nequity investments that can result in the utilization of this total amount of tax credits\nin a fiscal year, the department may not certify any more qualified equity\ninvestments. This limitat ion on qualified equity investments shall be based on\nscheduled utilization of tax credits without regard to the potential for taxpayers to\ncarry forward tax credits to subsequent tax years.","path":["KRS Chapter 141"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=43424","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:35Z","sha256":"a90dc37041adf733684f03974747f17a4edc79b743f40a6f465eb007d15f869c","source_id":"us-ky","stale":false,"prev":"us-ky/krs-141.433","next":"us-ky/krs-141.435"},"notice":"GroundRules: Original legal text. Not legal advice."}