2011 Kentucky Revised Statutes Subchapter 20 Financing of Development Generally 154.20.255 Tax credits available to investment fund -- Application for approval as manager -- Requirements for investment fund -- Agreement -- Total qualified investments made by fund.
KY Rev Stat § 154.20.255 (1996 through Reg Sess) What's This?
154.20-255 Tax credits available to investment fund -- Application for approval as
manager -- Requirements for investment fund -- Agreement -- Total qualified
investments made by fund.
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The total amount of tax credits available to any single investment fund shall not
exceed, in aggregate, eight million dollars (,000,000) for all investors and all
taxable years. The total tax credits available for all investors in all investment funds
shall not exceed forty million dollars (,000,000).
A person or entity seeking to be approved as an investment fund manager for the
operation of one (1) or more investment funds shall make written application to the
authority pursuant to KRS 154.20-256, in addition to complying with applicable
state and federal securities laws and regulations.
Prior to the granting of any tax credits to investors of an investment fund, the
committed cash contributions to an investment fund shall be not less than five
hundred thousand dollars (0,000).
An investment fund shall have no less than four (4) investors, and no investor or
investment fund manager, including their immediate family members, as defined in
KRS 164.6011(7), and affiliates may own or have a capital interest in more than
forty percent (40%) of the investment fund's capitalization.
Subsequent to approval of the investment fund and the investment fund manager,
the authority and the investment fund manager, on behalf of itself and any investors
in the investment fund, shall enter into an agreement with respect to the investment
fund. The terms and provisions of each agreement shall be determined by
negotiations between the authority and the investment fund manager. The effective
date of the agreement shall be the date of approval of the investment fund and the
investment fund manager by the authority. If an investment fund manager fails to
comply with any of the obligations of the agreement, the authority may, at its
option, do any one (1) or more of the following:
(a) Suspend the availability of the credits;
(b) Pursue any remedy provided under the agreement, including termination of
the agreement; or
(c) Pursue any other remedy at law to which it may be entitled.
Any investor shall be entitled to a tax credit as a result of its investment in an
investment fund as provided in KRS 154.20-258.
Total qualified investments made by an investment fund, including initial and
subsequent investments made by an investment fund, in any single small business
using approved qualified investments, shall not exceed thirty percent (30%) of the
committed cash contributions to the investment fund. This restriction shall not
apply to investments of money by the investment fund that are not qualified
investments.
The provisions of this section shall not prohibit an investment fund from investing
in a business that is not a small business, including a business that is located outside
of the Commonwealth; however, such investments shall not be eligible for the tax
credit set forth in KRS 154.20-258.
Effective: July 15, 2002
History: Created 2002 Ky. Acts ch. 230, sec. 18, effective July 15, 2002.
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