Kentucky Statutes 154.60-020 – Small Business Development Credit Program — Application requirements — Maximum credits permitted
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(1) The authority shall develop a Small Business Development Credit Program in consultation with the Office of Entrepreneurship and Innovation to assist new or existing small businesses operating in the Commonwealth. The nonrefundable credit shall be allowed against the taxes imposed by KRS § 141.020 or 141.040, and
141.0401. The ordering of credits shall be as provided in KRS § 141.0205.
(2) The authority shall determine the terms, conditions, and requirements for application for the credit, in consultation with the Office of Entrepreneurship and Innovation, subject to the provisions of subsection (3) of this section. The application shall contain identification information about the number of eligible positions created and filled, a calculation of the base employment of the small business, verification of investment of five thousand dollars ($5,000) or more in qualifying equipment or technology, and other information the authority may specify to determine eligibility for the credit.
(3) (a) The maximum amount of credits that may be committed in each fiscal year by the authority and shared between the small business tax credit program and the Selling Farmer Tax Credit Program shall be capped at three million dollars ($3,000,000).
(b) In order to be eligible to receive final approval for a credit, a small business shall, within the twenty-four (24) month period immediately preceding the application submission date:
1. Create and fill one (1) or more eligible positions over the base employment; and
2. Invest five thousand dollars ($5,000) or more in qualifying equipment or technology.
(c) Each eligible position that is created and filled shall be maintained for twelve (12) months. If a full-time employee filling a newly created eligible position ceases to be employed by the small business for any reason, that employee shall be replaced within forty-five (45) days in order for the eligible position to maintain its eligible status, in addition to meeting all other applicable requirements.
(d) The small business shall submit all information necessary for the authority to determine credit eligibility for each year, and the amount of credit for which the small business is eligible.
(e) The maximum amount of credit for each small business for each year shall not exceed twenty-five thousand dollars ($25,000).
(f) The credit shall be claimed on the tax return for the year during which the credit was approved. Unused credits may be carried forward for up to five (5) years.
Effective: June 29, 2023
History: Amended 2023 Ky. Acts ch. 75, sec. 29, effective June 29, 2023. — Amended
2021 Ky. Acts ch. 185, sec. 129, effective June 29, 2021. — Amended 2020 Ky. Acts ch. 91, sec. 23, effective April 15, 2020. — Amended 2019 Ky. Acts ch. 172, sec. 6,
effective March 26, 2019. — Amended 2018 Ky. Acts ch. 199, sec. 36, effective July
14, 2018. — Amended 2014 Ky. Acts ch. 128, sec. 2, effective July 15, 2014. — Amended 2010 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 12, effective June 4, 2010. — Created 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 66, effective June 26, 2009.
Legislative Research Commission Note (7/15/2014). In codification, the Reviser of Statutes has relocated the phrase “within a six (6) month period” from the position it had in 2014 Ky. Acts ch. 128, sec. 2, in subsection (3)(b) of this statute. The relocation did not change the meaning of subsection (3)(b).
Legislative Research Commission Note (6/26/2009). 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 73, provided that this statute and KRS § 154.60-010 and KRS § 154.60-030 “shall be known as the Emergency Small Business Stimulus Act.”
141.0401. The ordering of credits shall be as provided in KRS § 141.0205.
Terms Used In Kentucky Statutes 154.60-020
- Authority: means the Kentucky Economic Development Finance Authority. See Kentucky Statutes 154.60-010
- Base employment: means :
(a) For the first application for which credits are approved, the number of full- time employees employed on the day prior to the work start date of the new employee filling the earliest eligible position identified on the application. See Kentucky Statutes 154.60-010 - Commonwealth: means the Commonwealth of Kentucky. See Kentucky Statutes 154.1-010
- Eligible position: means each position that:
(a) Is filled by a full-time employee and that increases the total employment of the small business above its base employment. See Kentucky Statutes 154.60-010 - Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Full-time employee: means a person employed by a small business for at least an average of thirty-five (35) hours per week and subject to the state tax imposed by KRS §. See Kentucky Statutes 154.60-010
- Month: means calendar month. See Kentucky Statutes 446.010
- Qualifying equipment or technology: means equipment or technology that has been approved by the Office of Entrepreneurship and Innovation. See Kentucky Statutes 154.60-010
- Statute: A law passed by a legislature.
- Year: means calendar year. See Kentucky Statutes 446.010
(2) The authority shall determine the terms, conditions, and requirements for application for the credit, in consultation with the Office of Entrepreneurship and Innovation, subject to the provisions of subsection (3) of this section. The application shall contain identification information about the number of eligible positions created and filled, a calculation of the base employment of the small business, verification of investment of five thousand dollars ($5,000) or more in qualifying equipment or technology, and other information the authority may specify to determine eligibility for the credit.
(3) (a) The maximum amount of credits that may be committed in each fiscal year by the authority and shared between the small business tax credit program and the Selling Farmer Tax Credit Program shall be capped at three million dollars ($3,000,000).
(b) In order to be eligible to receive final approval for a credit, a small business shall, within the twenty-four (24) month period immediately preceding the application submission date:
1. Create and fill one (1) or more eligible positions over the base employment; and
2. Invest five thousand dollars ($5,000) or more in qualifying equipment or technology.
(c) Each eligible position that is created and filled shall be maintained for twelve (12) months. If a full-time employee filling a newly created eligible position ceases to be employed by the small business for any reason, that employee shall be replaced within forty-five (45) days in order for the eligible position to maintain its eligible status, in addition to meeting all other applicable requirements.
(d) The small business shall submit all information necessary for the authority to determine credit eligibility for each year, and the amount of credit for which the small business is eligible.
(e) The maximum amount of credit for each small business for each year shall not exceed twenty-five thousand dollars ($25,000).
(f) The credit shall be claimed on the tax return for the year during which the credit was approved. Unused credits may be carried forward for up to five (5) years.
Effective: June 29, 2023
History: Amended 2023 Ky. Acts ch. 75, sec. 29, effective June 29, 2023. — Amended
2021 Ky. Acts ch. 185, sec. 129, effective June 29, 2021. — Amended 2020 Ky. Acts ch. 91, sec. 23, effective April 15, 2020. — Amended 2019 Ky. Acts ch. 172, sec. 6,
effective March 26, 2019. — Amended 2018 Ky. Acts ch. 199, sec. 36, effective July
14, 2018. — Amended 2014 Ky. Acts ch. 128, sec. 2, effective July 15, 2014. — Amended 2010 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 12, effective June 4, 2010. — Created 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 66, effective June 26, 2009.
Legislative Research Commission Note (7/15/2014). In codification, the Reviser of Statutes has relocated the phrase “within a six (6) month period” from the position it had in 2014 Ky. Acts ch. 128, sec. 2, in subsection (3)(b) of this statute. The relocation did not change the meaning of subsection (3)(b).
Legislative Research Commission Note (6/26/2009). 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 73, provided that this statute and KRS § 154.60-010 and KRS § 154.60-030 “shall be known as the Emergency Small Business Stimulus Act.”