{"data":{"id":"us-ky/krs-154.32-070","jurisdiction":"us-ky","citation":"KRS 154.32-070","heading":"Tax credits for economic development project by approved company.","body":"(1) For taxable years beginning after December 31, 2009, an approved company may\nbe eligible for a credit of up to one hundred percent (100%) of the Kentucky\nincome tax imposed under KRS 141.020 or 141.040, and the limited liability entity\ntax imposed under KRS 141.0401, that would otherwise be owed by the approved\ncompany to the Commonwealth for the approved company's taxable year, on the\nincome, Kentucky gross profits, or Ken tucky gross receipts of the approved\ncompany generated by or arising from the economic development project.\n(2) The credit allowed the approved company shall be applied against both the income\ntax imposed by KRS 141.020 or 141.040, and the limited liabilit y entity tax\nimposed by KRS 141.0401, with credit ordering as provided in KRS 141.0205, for\nthe taxable year for which the tax return of the approved company is filed, subject\nto the annual maximum set forth in the tax incentive agreement. Any credit not used\nin the year in which it was first available may be carried forward to subsequent\nyears, provided that no credit may be carried forward beyond the term of the tax\nincentive agreement.\n(3) The approved company shall not be required to pay estimated tax p ayments under\nKRS 141.044 on the Kentucky taxable income, Kentucky gross receipts, or\nKentucky gross profits generated by or arising from the eligible project.\n(4) The credit provided by this section shall be determined as provided in KRS\n141.415.\n(5) The amount of incentives allowed under subsections (1) to (4) of this section shall\nnot exceed the lesser of the tax liability of the approved company related to the\neconomic development project for that year or the annual maximum approved costs\nset forth in the tax incentive agreement in any year. The incentives shall be allowed\nfor each fiscal year of the approved company during the term of the tax incentive\nagreement for which a tax return is filed by the approved company.\n(6) (a) An approved company receiving preliminary approval after July 1, 2026, may\nreceive, in addition to the inducements provided under subsections (1) to (4)\nof this section, a credit as provided under KRS 141.399 in an amount up to:\n1. Two and one -quarter percent (2.25%) of the wages pa id to full -time\nemployees who are subject to the tax imposed by KRS 141.020 and\nmaintained at an economic development project located in a heritage\ncounty; and\n2. One and one -quarter percent (1.25%) of the wages paid to full -time\nemployees who are subject to the tax imposed by KRS 141.020 and\nmaintained at an economic development project located in any other\ncounty.\n(b) The cumulative credits awarded:\n1. To an approved company under this subsection for any year of the\nagreement shall not exceed the annual maximum approved costs of the\neconomic development project as provided in the tax incentive\nagreement; and\n2. Shall not exceed four million dollars ($4,0 00,000) per taxable year, of\nwhich no more than one million dollars ($1,000,000) shall be allowed\nfor wages paid to full -time employees in counties other than heritage\ncounties.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57129","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:56Z","sha256":"0c3ab4a653ab1daa4d6ea330dc37356d20630612808e04a8a0910a3e04036899","source_id":"us-ky","stale":false,"prev":"us-ky/krs-154.32-060","next":"us-ky/krs-154.32-080"},"notice":"GroundRules: Original legal text. Not legal advice."}