Instructions 2012 Kentucky Corporation Income Tax And Llet Return - 2012 Page 14
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20141.432(6) shall be entitled to a nonrefundable tax credit against
ENDOW Kentuck y Tax Credit – A taxpayer making an
the taxes imposed by KRS 141.020, 141.040, 141.0401, 136.320,
endowment gift to a permanent endowment fund of a qualified
136.330, 136.340, 136.350, 137.370, 136.390 or 304.3-270. The total
community foundation, or county-specific component fund,
amount of tax credits that may be awarded by the department
or affiliate community foundation, which has been certified
shall be limited to $5 million. “Qualified low-income community
under KRS 147A.325, is entitled to a tax credit equal to twenty
investment” means any capital or equity investment in, or loan
percent (20%) of the endowment gift, not to exceed $10,000. The
to, any qualified active low-income community business made
nonrefundable tax credit is allowed against the taxes imposed
after June 4, 2010. With respect to any one qualified active low-
by KRS 141.020 or 141.040 and KRS 141.0401 and if not use in
income community business, the maximum amount of qualified
the year the tax credit is awarded may be carried forward for
active low-income community investments that may be made in
a period not to exceed five years. The department shall issue
the business, on a collective basis with all of its affiliates, with
a credit certification (Schedule ENDOW) to a taxpayer upon
the proceeds of qualified equity investments that have been
receiving proof that the endowment gift was made to the
certified under KRS 141.433 shall be $10 million, whether made
approved community foundation as provided by KRS 141.438(7).
by one or several qualified community development entities.
Schedule ENDOW must be attached to the taxpayer’s tax return
each year to claim the credit. A partner, member or shareholder
The amount of the credit shall be equal to 39% of the purchase
of a pass-through entity shall attach a copy of Schedule
price of the qualified equity investment made by the taxpayer.
K-1, Form 720S, 765 or 765-GP to the partner’s, member’s
A taxpayer is allowed to claim zero percent (0%) for each of
or shareholder’s tax return each year to claim the tax credit.
the first two credit allowance dates, seven percent (7%) for
the third allowance date, and eight percent (8%) for the next
New Markets Development Program Tax Credit—KRS 141.432
four allowance dates. “Credit allowance date” means with
to 141.434 was created to encourage taxpayer investment in
respect to any qualified equity investment: (a) the date on
qualified low-income communities. A taxpayer that makes a
which the investment is initially made; and (b) each of the
qualified equity investment as provided by KRS 141.432(7) in a
six anniversary dates of that date thereafter. KRS 141.434
qualified community development entity as provided by KRS
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