{"data":{"id":"us-ky/krs-141.438","jurisdiction":"us-ky","citation":"KRS 141.438","heading":"Endow Kentucky tax credit.","body":"(1) For taxable years beginning on or after January 1, 2011, there is hereby established\nthe Endow Kentucky tax credit.\n(2) A taxpayer providing an endowment gift to a permanent endowment fund of a\nqualified community foundation, or county -specific component f und, or affiliate\ncommunity foundation, which has been certified under KRS 147A.325, and\nmeeting the requirements of subsection (7) of this section, may claim a credit\nagainst the taxes imposed by KRS 141.020 or 141.040 and 141.0401. The ordering\nof the credit shall be as provided in KRS 141.0205.\n(3) The credit shall be equal to twenty percent (20%) of the value of the endowment\ngift provided by the taxpayer, not to exceed ten thousand dollars ($10,000).\n(4) The credit shall be nonrefundable, but any amoun t of credit that a taxpayer is not\nable to utilize during a particular taxable year may be carried forward for use in a\nsubsequent taxable year, for a period not to exceed five (5) years.\n(5) No tax credit claimed under this section may be sold or transfer red. If the taxpayer\nis a pass -through entity not subject to tax under KRS 141.040, the amount of\napproved credit shall be applied against the tax imposed by KRS 141.0401 at the\nentity level, and shall also be distributed to each partner, member, or shareh older\nbased on the partner's, member's, or shareholder's distributive share of the income\nof the pass-through entity.\n(6) The total amount of tax credit that may be awarded under this section shall be\nlimited to:\n(a) Five hundred thousand dollars ($500,000 ) in each fiscal year beginning on or\nbefore July 1, 2015;\n(b) One million dollars ($1,000,000) in each fiscal year beginning on or after July\n1, 2016, and prior to July 1, 2026; and\n(c) Two million dollars ($2,000,000) in each fiscal year beginning on or after July\n1, 2026.\n(7) A taxpayer pursuing a tax credit under this section shall:\n(a) File an application for preliminary authorization of the tax credit with the\ndepartment;\n(b) After receiving preliminary authorization from the department, provide an\nendowment gift to a qualified community foundation, county -specific\ncomponent fund, or af filiate community foundation which has been certified\nunder KRS 147A.325 within thirty (30) days of the date of the notice of\nauthorization for the tax credit from the department; and\n(c) Within ten (10) days of making the gift, report to the department pr oof of the\nendowment gift.\n(8) (a) The department shall:\n1. Create the application required to be filed by the taxpayer seeking\npreliminary approval for the tax credit; and\n2. Publish on its website the amount of total credit allocated to date, the\ndate th e last processed application for preliminary approval was\nreceived, and the remaining credit available.\n(b) 1. Upon receipt of an application for preliminary approval submitted under\nsubsection (7) of this section, the department shall review the\napplication and, if approved, the department shall issue a notice of\npreliminary approval to the requesting taxpayer.\n2. The notice of preliminary approval shall include the amount of credit,\nshall notify the taxpayer that the proposed gift must be made within\nthirty (30) days of the date reflected on the notice of authorization, and\nthat the taxpayer must notify the department that the gift has been made,\nin the form and format determined by the department, within ten (10)\ndays of making the gift.\n3. Upon preliminary approval of an application for credit, the department\nshall reduce the outstanding available credit cap amount to reflect the\npreliminary approved credit.\n(c) Upon timely receipt of notification from a taxpayer preliminarily approved for\na credit that the investment has been timely made, the department shall verify\nthe information provided and, if the information is accurate, the department\nshall issue a final tax credit letter to the taxpayer.\n(d) If a taxpayer fails to make the required investment or p rovide proof of the\ninvestment to the department within the time frames established by this\nsubsection and subsection (7) of this section, the department shall void the\npreliminary approval and shall restore the allocated amounts to the tax credit\ncap.","path":["KRS Chapter 141"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=56975","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:35Z","sha256":"8631c02fcd7ac226e604f56edb864cdd4f0afd9237e553a0e2f767e080a8a269","source_id":"us-ky","stale":false,"prev":"us-ky/krs-141.437","next":"us-ky/krs-141.440"},"notice":"GroundRules: Original legal text. Not legal advice."}