{"data":{"id":"us-ky/krs-141.522","jurisdiction":"us-ky","citation":"KRS 141.522","heading":"Education Opportunity Account Program tax credit -- Cap on credit --","body":"Prioritization.   (See LRC Note below)\n(1) (a) Effective for taxable years beginning on or after January 1, 2021, but before\nJanuary 1, 2026, a nonrefundable, nontransferable ta x credit shall be\npermitted against the tax imposed by KRS 141.020 or 141.040 and 141.0401,\nwith the ordering of credit as provided in KRS 141.0205 as applicable, for\ncontributions made during a taxable year to one (1) or more AGOs in\naccordance with the EOA program. To qualify for this credit, a taxpayer filing\nas an individual shall elect to claim a federal and Kentucky contribution\ndeduction associated with the contributions made to an AGO that does not\nexceed an amount equal to the total contribution fo r the taxable year less the\namount of credit allowed by this section for the taxable year.\n(b) If the taxpayer is a pass -through entity, the taxpayer shall apply the credit\nagainst the limited liability entity tax imposed by KRS 141.0401, and shall\nalso pa ss the credit through to its members, partners, or shareholders in the\nsame proportion as the distributive share of income or loss is passed through.\n(2) The aggregate value of the total annual tax credit cap awarded shall not exceed\ntwenty-five million dollars ($25,000,000).\n(3) The credit amount awarded per taxpayer per taxable year shall be no more than the\nlesser of:\n(a) Ninety-five percent (95%) of the total contributions made to an AGO, except\nas provided in subsection (4) of this section; or\n(b) One million dollars ($1,000,000).\n(4) (a) The taxpayer may elect to pledge a contribution for multiple taxable years, not\nto exceed a total of four (4) taxable years.\n(b) If the multi -year pledge is made by the taxpayer and the amount of the\ncontributions for each of the multiple taxable years is equal to or more than\nthe amount of contributions made to the AGO in the taxable year within\nwhich the pledge is made, the amount of allowable credit shall be increased\nby two (2) percentage points to ninety-seven percent (97%) in the taxable year\nwithin which the pledge is made and for each pledged year.\n(c) If the taxpayer does not remit the pledged amount of contributions during any\ntaxable year for which a multi -year pledge is made, the taxpayer shall repay\nthe portion of the credit resulting from the increase allowed by this\nsubsection.\n(5) Any tax credit awarded under this section that is not used by the taxpayer in the\ncurrent taxable year may be carried forward for up to five (5) succeeding taxable\nyears until the tax credit has been utilized.\n(6) Tax credits under this section shall be awarded on a fir st-come, first-served basis\neach fiscal year within the limitations set forth in this section. The date and time\nstamp from each application for preapproval shall establish the order in which the\napplication was received. For contributions pledged for mult iple tax years, the\ncontribution shall be considered the first in line for the years subsequent to the\ninitial year of the pledge.","path":["KRS Chapter 141"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=51416","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:35Z","sha256":"116c2170354a0e92ccadec32558cebe332bde6fb79e5d9727328dd2e96a31507","source_id":"us-ky","stale":false,"prev":"us-ky/krs-141.520","next":"us-ky/krs-141.524"},"notice":"GroundRules: Original legal text. Not legal advice."}