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141.062 Premiums paid for health insurance to be treated as income tax credit.
(1)
(2)
The amount of premiums paid for health insurance shall be treated as an income tax
credit for state income tax purposes, and as a credit against the limited liability
entity tax imposed by KRS 141.0401, with the ordering of the credits as provided in
KRS 141.0205, as follows:
(a) Twenty percent (20%) of the first year premium;
(b) Fifteen percent (15%) of the second year premium;
(c) Ten percent (10%) of the third year premium; and
(d) Five percent (5%) of the fourth year premium.
No employer or employee shall be eligible for the income tax credits enumerated in
this section unless:
(a) Premiums are paid into the trust prior to July 1, 1992;
(b) Fifty (50) or fewer employees are employed;
(c) No health insurance benefits have been provided by the employer during the
three (3) years preceding the date premiums are initially paid to the trust;
(d) Employers maintain participation in the trust for all full-time and part-time
employees for a period of four (4) continuous years; and
(e) Employers pay at least fifty percent (50%) of the premium.
Effective: June 28, 2006
History: Amended 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 16, effective June 28,
2006. -- Created 1990 Ky. Acts ch. 482, sec. 21, effective July 13, 1990.
Legislative Research Commission Note (6/28/2006). 2006 (1st Extra Sess.) Ky. Acts
ch. 2, sec. 73, provides that "unless a provision of this Act specifically applies to an
earlier tax year, the provisions of this Act shall apply to taxable years beginning on or
after January 1, 2007."
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