{"data":{"id":"us-ky/krs-154.20-255","jurisdiction":"us-ky","citation":"KRS 154.20-255","heading":"Tax credits available to investment fund -- Application for approval as","body":"manager -- Requirements for investment fund -- Agreement -- Total qualified\ninvestments made by fund.\n(1) (a) The total amount of credits available to any single inv estment fund awarded\ncredits under KRS 154.20-250 to 154.20-284 shall not exceed, in aggregate:\n1. For any calendar year begining prior to January 1, 2022, eight million\ndollars ($8,000,000) for all investors and all taxable years; and\n2. In any calendar year beginning on or after January 1, 2022, one million\ndollars ($1,000,000).\n(b) The total credit available for all investors in all investment funds awarded\nunder KRS 154.20-250 to 154.20-284 shall not exceed a total of three million\ndollars ($3,000,000) in any calendar year beginning on or after January 1,\n2021.\n(2) A person or entity seeking to be approved as an investment fund manager for the\noperation of one (1) or more investment funds shall make written application to the\nauthority pursuant to KRS 15 4.20-256, in addition to complying with applicable\nstate and federal securities laws and regulations.\n(3) Prior to the granting of any tax credits to investors of an investment fund, the\ncommitted cash contributions to an investment fund shall be not less than five\nhundred thousand dollars ($500,000).\n(4) (a) An investment fund shall have no less than four (4) investors, and no investor\nor investment fund manager, including their closely related family members,\nand affiliates may own or have a capital inter est in more than forty percent\n(40%) of the investment fund's capitalization.\n(b) As used in this subsection, \"closely related\" means any of the following in\nrelation to the investor, the investor's spouse, the fund manager, or the fund\nmanager's spouse:\n1. Parents or grandparents;\n2. Children or their spouses; or\n3. Siblings or their spouses.\n(5) Subsequent to approval of the investment fund and the investment fund manager,\nthe authority and the investment fund manager, on behalf of itself and any investors\nin the investment fund, shall enter into an agreement with respect to the investment\nfund. T he terms and provisions of each agreement shall be determined by\nnegotiations between the authority and the investment fund manager. The effective\ndate of the agreement shall be the date of approval of the investment fund and the\ninvestment fund manager by  the authority. If an investment fund manager fails to\ncomply with any of the obligations of the agreement, the authority may, at its\noption, do any one (1) or more of the following:\n(a) Suspend the availability of the credits;\n(b) Pursue any remedy provid ed under the agreement, including termination of\nthe agreement; or\n(c) Pursue any other remedy at law to which it may be entitled.\n(6) Any investor shall be entitled to a tax credit as a result of its investment in an\ninvestment fund as provided in KRS 154.20-258.\n(7) Total qualified investments made by an investment fund, including initial and\nsubsequent investments made by an investment fund, in any single small business\nusing approved qualified investments, shall not exceed thirty percent (30%) of the\ncommitted cash contributions to the investment fund. This restriction shall not\napply to investments of money by the investment fund that are not qualified\ninvestments.\n(8) The provisions of this section shall not prohibit an investment fund from investing\nin a business that is not a small business, including a business that is located outside\nof the Commonwealth; however, such investments shall not be eligible for the tax\ncredit set forth in KRS 154.20-258.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=51548","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:53Z","sha256":"8eea2a40f40931b53df5a7234e3d6f63116eabfbea4178d84114397e73d331f6","source_id":"us-ky","stale":false,"prev":"us-ky/krs-154.20-254","next":"us-ky/krs-154.20-256"},"notice":"GroundRules: Original legal text. Not legal advice."}