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Form 8874(K)-B - Notice Of Kentucky New Markets Development Program Tax Credit Recapture Page 2

41A720-S82 (8874(K)-B) (6-13)

Page 2

Commonwealth of Kentucky

DEPARTMENT OF REVENUE

INSTRUCTIONS—NOTICE OF KENTUCKY NEW MARKETS

DEVELOPMENT PROGRAM TAX CREDIT RECAPTURE

If there is an event as provided by KRS 141.433(6) which would result in the recapture of any portion of the tax

credit previously approved: (i) the qualified community development entity (CDE) shall notify the department upon

discovery of such event; or (ii) the department upon discovery of such event or after receiving notice from the CDE

of such event shall provide written notice (via certified mail) of the proposed recapture to the CDE as provided by

KRS 141.433(6)(b).

If the CDE fails or is unable to cure the deficiency within ninety (90) days after receiving the department’s original

notice of recapture as provided by KRS 141.433(6)(b), a copy of this form (Form 8874(K)-B) will be sent by the

department to the CDE and each taxpayer showing the amount of the tax credit recapture or balance of the tax credit.

If the taxpayer is a pass-through entity, a Form 8874(K)-B will also be sent to each partner, member or shareholder

showing the partner’s, member’s or shareholder’s tax credit recapture or balance of the tax credit.

If Form 8874(K)-B, Line 3 shows a recapture of tax credit, the taxpayer or a partner, member or shareholder of a

taxpayer shall attach a copy of Form 8874(K)-B to the tax return for the tax year that includes the credit recapture

date and enter the tax credit recapture on the applicable line of the tax return.

If Form 8874(K)-B, Line 4 shows a tax credit balance, the taxpayer or a partner, member or shareholder of a taxpayer

shall attach a copy of Form 8874(K)-B to the tax return each year to claim the tax credit against the taxes imposed

by KRS 141.020, 141.040, 141.0401, 136.320, 136.330, 136.340, 136.350, 136.370, 136.390 or 304.3-270.

Form 8874(K)-B - Notice Of Kentucky New Markets Development Program Tax Credit Recapture Page 2