2016 Kentucky Revised Statutes
CHAPTER 141 - INCOME TAXES
.396 Nonrefundable angel investor tax credit against individual income tax -- Carry forward -- Transfer of credit -- Recapture of credit.

Download as PDF 141.396 Nonrefundable angel investor tax credit against individual income tax -Carry forward -- Transfer of credit -- Recapture of credit. (1) (2) (3) (4) (5) (6) (7) (8) (9) As used in this section: (a) "Authority" has the same meaning as in KRS 154.20-230; (b) "Qualified investor" has the same meaning as in KRS 154.20-230; (c) "Qualified small business" has the same meaning as in KRS 154.20-230; and (d) "Taxpayer" means an individual subject to the tax imposed by KRS 141.020, who has either: 1. Received a credit from the authority pursuant to KRS 154.20-236; or 2. Received a credit through a valid transfer allowed under this section from a qualified investor that was originally awarded the credit. For taxable years beginning on or after January 1, 2015, there is hereby created the angel investor tax credit. The credit shall be nonrefundable, and shall apply against the tax imposed by KRS 141.020. The ordering of the credit shall be as provided in KRS 141.0205. A qualified investor may seek a credit by applying to the authority pursuant to KRS 154.20-236. The maximum amount of credit that may be claimed by a taxpayer in any taxable year shall not exceed fifty percent (50%) of the total amount of credit awarded or transferred to the taxpayer. Any amount of credit that a taxpayer is unable to utilize during a taxable year may be carried forward for use in a succeeding taxable year for a period not to exceed fifteen (15) years. Any amount of credit not used within fifteen (15) years shall be lost. No amount of credit may be carried back by any taxpayer. The credit shall not apply to any liability a taxpayer may have for interest, penalties, past due taxes, or any other additions to the taxpayer's tax liability. The holder of the credit shall assume any and all liabilities and responsibilities of the credit. A credit may be transferred by a qualified investor to any individual taxpayer. A qualified investor making a transfer shall give written notice to the department and shall provide any other information required by the department, in the manner prescribed by the department. Any transferred credit shall be subject to the original timeframes and requirements established by this section and KRS 154.20-230 to 154.20-240 as if held by the qualified investor. To receive the credit, a taxpayer shall claim the credit on his or her return in the manner prescribed by the department. The department shall recapture any portion, or the full amount, of a credit upon notification from the authority that a recapture is required pursuant to KRS 154.20240. Effective: July 15, 2014 History: Created 2014 Ky. Acts ch. 102, sec. 28, effective July 15, 2014.