Kentucky Statutes 141.3841 – Selling farmers tax credit
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41.3841 Selling farmers tax credit.
(1) The selling farmers tax credit permitted by KRS § 154.60-040: (a) Shall be nonrefundable and nontransferable; and
(b) May be claimed against the taxes imposed in KRS § 141.020 or 141.040 and
141.0401, with the ordering of the credit as provided in KRS § 141.0205.
(2) (a) The maximum amount of credit that may be claimed by a selling farmer in each taxable year is limited to:
1. No more than the total amount of credit approved by the Kentucky
Economic Development Finance Authority;
2. Twenty-five thousand dollars ($25,000) in any taxable year; and
3. No more than one hundred thousand dollars ($100,000) total tax credit over the lifetime of the selling farmer.
(b) The credit shall be first claimed on the tax return for the taxable year during which the credit was approved.
(c) Any unused credit in a taxable year may be carried forward for up to five (5)
taxable years and, if not utilized within the five (5) year period, shall be lost. (3) In order for the General Assembly to evaluate the fulfillment of the purpose stated
in KRS § 154.60-040, the department shall provide the following information, on a
cumulative basis, for each selling farmer, for each taxable year:
(a) The location, by county, of the agricultural assets sold to a beginning farmer and approved for a tax credit under KRS § 154.60-040;
(b) The total amount of tax credit approved by the Kentucky Economic
Development Finance Authority for each selling farmer;
(c) The amount of tax credit claimed for each selling farmer in each taxable year;
and
(d) 1. In the case of all taxpayers other than corporations, based on ranges of adjusted gross income of no larger than five thousand dollars ($5,000) for the taxable year, the total amount of tax credits claimed and the number of returns claiming a tax credit for each adjusted gross income range; and
2. In the case of all corporations, based on ranges of net income no larger than fifty thousand dollars ($50,000) for the taxable year, the total amount of tax credit claimed and the number of returns claiming a tax credit for each net income range.
(4) The report required by subsection (3) of this section shall be submitted to the Interim Joint Committee on Appropriations and Revenue beginning no later than November 1, 2021, and no later than each November 1 thereafter, as long as the credit is claimed on any return processed by the department.
Effective: April 15, 2020
History: Created 2020 Ky. Acts ch. 91, sec. 19, effective April 15, 2020.
(1) The selling farmers tax credit permitted by KRS § 154.60-040: (a) Shall be nonrefundable and nontransferable; and
Terms Used In Kentucky Statutes 141.3841
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- corporations: means :
1. See Kentucky Statutes 141.900 - Department: means the Department of Revenue. See Kentucky Statutes 141.010
- Joint committee: Committees including membership from both houses of teh legislature. Joint committees are usually established with narrow jurisdictions and normally lack authority to report legislation.
- Taxable year: means the calendar year or fiscal year ending during such calendar year, upon the basis of which net income is computed, and in the case of a return made for a fractional part of a year under the provisions of this chapter or under administrative regulations prescribed by the commissioner, "taxable year" means the period for which the return is made. See Kentucky Statutes 141.010
- Year: means calendar year. See Kentucky Statutes 446.010
(b) May be claimed against the taxes imposed in KRS § 141.020 or 141.040 and
141.0401, with the ordering of the credit as provided in KRS § 141.0205.
(2) (a) The maximum amount of credit that may be claimed by a selling farmer in each taxable year is limited to:
1. No more than the total amount of credit approved by the Kentucky
Economic Development Finance Authority;
2. Twenty-five thousand dollars ($25,000) in any taxable year; and
3. No more than one hundred thousand dollars ($100,000) total tax credit over the lifetime of the selling farmer.
(b) The credit shall be first claimed on the tax return for the taxable year during which the credit was approved.
(c) Any unused credit in a taxable year may be carried forward for up to five (5)
taxable years and, if not utilized within the five (5) year period, shall be lost. (3) In order for the General Assembly to evaluate the fulfillment of the purpose stated
in KRS § 154.60-040, the department shall provide the following information, on a
cumulative basis, for each selling farmer, for each taxable year:
(a) The location, by county, of the agricultural assets sold to a beginning farmer and approved for a tax credit under KRS § 154.60-040;
(b) The total amount of tax credit approved by the Kentucky Economic
Development Finance Authority for each selling farmer;
(c) The amount of tax credit claimed for each selling farmer in each taxable year;
and
(d) 1. In the case of all taxpayers other than corporations, based on ranges of adjusted gross income of no larger than five thousand dollars ($5,000) for the taxable year, the total amount of tax credits claimed and the number of returns claiming a tax credit for each adjusted gross income range; and
2. In the case of all corporations, based on ranges of net income no larger than fifty thousand dollars ($50,000) for the taxable year, the total amount of tax credit claimed and the number of returns claiming a tax credit for each net income range.
(4) The report required by subsection (3) of this section shall be submitted to the Interim Joint Committee on Appropriations and Revenue beginning no later than November 1, 2021, and no later than each November 1 thereafter, as long as the credit is claimed on any return processed by the department.
Effective: April 15, 2020
History: Created 2020 Ky. Acts ch. 91, sec. 19, effective April 15, 2020.