AN ACT relating to revenue.

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AN ACT relating to revenue. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 141.068 is amended to read as follows: 3
(1) As used in this section, unless the context requires otherwise: 4
(a) "Authority" means the Kentucky Economic Development Finance Authority 5
as created pursuant to KRS 154.20-010; 6
(b) "Investor" has the same meaning as set forth in KRS 154.20-254; 7
(c) "Investment fund" has the same meaning as set forth in KRS 154.20-254; 8
(d) "Investment fund manager" has the same meaning as set forth in KRS 154.20 -9
254; and 10
(e) "Tax credit" means the credits provided for in KRS 154.20-258. 11
(2) (a) An investor which is an individual or a corporation shall be entitled to the 12
credit certified by t he authority under KRS 154.20 -258 against the tax due 13
computed as provided by KRS 141.020 or 141.040, respectively, and against 14
the tax imposed by KRS 141.0401, with the ordering of credits as provided in 15
KRS 141.0205. 16
(b) The amount of the certified tax c redit that may be claimed in any tax year of 17
the investor shall be determined in accordance with the provisions of KRS 18
154.20-258. 19
(3) (a) In the case of an investor that is a pass -through entity not subject to the tax 20
imposed by KRS 141.040, the amount of the tax credit certified by the 21
authority under KRS 154.20 -258 shall be taken by the pass -through entity 22
against the limited liability entity tax imposed by KRS 141.0401, and shall 23
also be apportioned among the partners, members, or shareholders at the sa me 24
ratio as the partners', members', or shareholders' distributive shares of income 25
are determined for the tax year during which the amount of the credit is 26
certified by the authority. 27
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(b) The amount of the tax credit apportioned to each partner, member, o r 1
shareholder that may be claimed in any tax year of the partner, member, or 2
shareholder shall be determined in accordance with the provisions of KRS 3
154.20-258. 4
(4) (a) In the case of an investor that is a trust not subject to the tax imposed by KRS 5
141.040, the amount of the tax credit certified by the authority under KRS 6
154.20-258 shall be apportioned to the trust and the beneficiaries on the basis 7
of the income of the trust allocable to each for the tax year during which the 8
tax credit is certified by the authority. 9
(b) The amount of tax credit apportioned to each trust or beneficiary that may be 10
claimed in any tax year of the trust or beneficiary shall be determined in 11
accordance with the provisions of KRS 154.20-258. 12
(5) The department [of Revenue ] shall promulgate administrative regulations under 13
KRS Chapter 13A to adopt procedures for the administration of the credits 14
authorized by KRS 154.20-258. 15
(6) In order for the General Assembly to evaluate the fulfillment of the purposes stated 16
in KRS 154.20 -250, the department shall work jointly with the Cabinet for 17
Economic Development to provide a report detailing each investment fund 18
agreement entered into by the cabinet. The report shall be submitted to the Interim 19
Joint Committee on Appropriations and Rev enue on or before May 1, 2019, and 20
contain the following information: 21
(a) The date the agreement was entered into by the cabinet with the investment 22
fund manager; 23
(b) The name of the investment fund manager and the name of the investment 24
fund; 25
(c) The primary business location of the investment fund; 26
(d) The total number of investment funds, the number of investors for each fund, 27
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the amount of committed cash contributions to each investment fund, and the 1
total qualified investments made by each investment f und, including initial 2
and subsequent investments, for each small business; 3
(e) A list detailing each investor within each investment fund, the amount of 4
investment made by each investor, and the amount of tax credit awarded each 5
investor; 6
(f) Whether the authority has suspended the availability of any credits, 7
terminated any agreements, or pursued any other remedy because the 8
investment fund manager failed to comply with the agreement; 9
(g) By taxable year, the amount of tax credit claimed by each investor by type of 10
tax, including income tax, any taxes imposed on financial institutions, or 11
insurance taxes; 12
(h) The number of small businesses that are active, inactive, or closed that have 13
received investments from an investment fund; 14
(i) The number and location of each new small business established or expanded; 15
(j) The number and location of each new job created; 16
(k) The number of new products and technologies created; and 17
(l) The total amount of tax credit awarded for each fiscal year. 18
(7) If either the depa rtment or the Cabinet for Economic Development does not 19
currently have the data to fulfill the reporting requirement of subsection (6) of this 20
section, the department and the cabinet shall work jointly to obtain the data in an 21
expedient manner to provide the report on or before the May 1, 2019, report date. 22