{"data":{"id":"us-ky/krs-154.34-120","jurisdiction":"us-ky","citation":"KRS 154.34-120","heading":"Nonrefundable tax credit for reinvestment project by approved","body":"company.\n(1) Except as provided in subsection (5) of this section, for taxable years beginning\nafter December 31, 2009, an approved company may be eligible for a nonrefundable\ncredit of up to one hundred percent (100%) of the Kentucky income tax imposed\nunder KRS 141.020 or 141.040, and the limited liability entity tax imposed under\nKRS 141.0401 that would otherwise be owed by the approved company to the\nCommonwealth for the approved company's tax year, on the income, Kentucky\ngross profits, or Kentucky gross recei pts of the approved company generated by or\narising from the reinvestment 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 liability entity tax\nimposed by KRS 141.0401, with credit ordering as provided in KRS 141.0205, for\nthe tax year for which the tax return of the approved company is filed. Any credit\nnot used in the year in which it was first available may be carried forward to\nsubsequent years, provided that no credit may be carried forward beyond the term of\nthe reinvestment agreement.\n(3) The approved company shall not be required to pay estimated tax payments 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) (a) For an approved company which receives preliminary approval prior to\nFebruary 1, 2010, the amount of i ncentives allowed in any year shall not\nexceed the lesser of the tax liability of the approved company related to the\nreinvestment project for that taxable year or the approved costs that have not\nyet been recovered.\n(b) For an approved company which recei ves preliminary approval on or after\nFebruary 1, 2010, the amount of incentives allowed in any year shall not\nexceed the lesser of the tax liability of the approved company related to the\nreinvestment project for that taxable year or twenty percent (20%) o f the total\namount of the approved costs.\n(c) The incentives shall be allowed for each taxable year of the approved\ncompany during the term of the reinvestment agreement for which a tax return\nis filed by the approved company.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=49215","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:56Z","sha256":"93b6e43ab96a1820a30c84f74bec1f191931a8f2e76497ae73f5c716016f1630","source_id":"us-ky","stale":false,"prev":"us-ky/krs-154.34-110","next":"us-ky/krs-154.340"},"notice":"GroundRules: Original legal text. Not legal advice."}