Kentucky Statutes 141.408 – Inventory tax credit — Applies on or after January 1, 2018 — Pass-through entities, allowable credit — Annual report
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(1) There shall be allowed a nonrefundable and nontransferable credit against the tax imposed by KRS § 141.020 or 141.040 and 141.0401, with the ordering of the credits as provided in KRS § 141.0205, for any taxpayer that, on or after January 1, 2018, timely pays an ad valorem tax to the Commonwealth or any political subdivision thereof for property described in KRS § 132.020(1)(e) or 132.099.
(2) The credit allowed under subsection (1) of this section shall be in an amount equal to:
(a) Twenty-five percent (25%) of the ad valorem taxes timely paid for taxable years beginning on or after January 1, 2018, and before January 1, 2019;
(b) Fifty percent (50%) of the ad valorem taxes timely paid for taxable years beginning on or after January 1, 2019, and before January 1, 2020;
(c) Seventy-five percent (75%) of the ad valorem taxes timely paid for taxable years beginning on or after January 1, 2020, and before January 1, 2021; and
(d) One hundred percent (100%) of the ad valorem taxes timely paid, for taxable years beginning on or after January 1, 2021.
(3) If the taxpayer is a pass-through entity, the taxpayer may apply the credit against the limited liability entity tax imposed by KRS § 141.0401, and shall pass the credit through to its members, partners, or shareholders in the same proportion as the distributive share of income or loss is passed through.
(4) No later than October 1, 2019, and annually thereafter, the department shall report to the Interim Joint Committee on Appropriations and Revenue:
(a) The name of each taxpayer taking the credit permitted by subsection (1) of this section;
(b) The location of the property upon which the credit was allowed; and
(c) The amount of credit taken by that taxpayer.
Effective: June 27, 2019
History: Amended 2019 Ky. Acts ch. 151, sec. 55, effective June 27, 2019. — Created
2018 Ky. Acts ch. 171, sec. 115, effective April 14, 2018; and ch. 207, sec. 115, effective April 27, 2018.
Legislative Research Commission Note (4/27/2018). This statute was created by 2018
Ky. Acts ch. 171, sec. 115 and ch. 207, sec. 115, which are nearly identical and have been codified together.
(2) The credit allowed under subsection (1) of this section shall be in an amount equal to:
Terms Used In Kentucky Statutes 141.408
- 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.
- Pass-through entity: means any partnership, S corporation, limited liability company, limited liability partnership, limited partnership, or similar entity recognized by the laws of this state that is not taxed for federal purposes at the entity level, but instead passes to each partner, member, shareholder, or owner their proportionate share of income, deductions, gains, losses, credits, and any other similar attributes. See Kentucky Statutes 141.010
- Statute: A law passed by a legislature.
(a) Twenty-five percent (25%) of the ad valorem taxes timely paid for taxable years beginning on or after January 1, 2018, and before January 1, 2019;
(b) Fifty percent (50%) of the ad valorem taxes timely paid for taxable years beginning on or after January 1, 2019, and before January 1, 2020;
(c) Seventy-five percent (75%) of the ad valorem taxes timely paid for taxable years beginning on or after January 1, 2020, and before January 1, 2021; and
(d) One hundred percent (100%) of the ad valorem taxes timely paid, for taxable years beginning on or after January 1, 2021.
(3) If the taxpayer is a pass-through entity, the taxpayer may apply the credit against the limited liability entity tax imposed by KRS § 141.0401, and shall pass the credit through to its members, partners, or shareholders in the same proportion as the distributive share of income or loss is passed through.
(4) No later than October 1, 2019, and annually thereafter, the department shall report to the Interim Joint Committee on Appropriations and Revenue:
(a) The name of each taxpayer taking the credit permitted by subsection (1) of this section;
(b) The location of the property upon which the credit was allowed; and
(c) The amount of credit taken by that taxpayer.
Effective: June 27, 2019
History: Amended 2019 Ky. Acts ch. 151, sec. 55, effective June 27, 2019. — Created
2018 Ky. Acts ch. 171, sec. 115, effective April 14, 2018; and ch. 207, sec. 115, effective April 27, 2018.
Legislative Research Commission Note (4/27/2018). This statute was created by 2018
Ky. Acts ch. 171, sec. 115 and ch. 207, sec. 115, which are nearly identical and have been codified together.