Instructions For Form 725 - Kentucky Single Member Llc Individually Owned Llet Return - 2011 Page 2
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16New Markets Development Program Tax Credit – KRS 141.432
investments that may be made in the business, on a collective
to 141.434 was created to encourage taxpayer investment in
basis with all of its affiliates, with the proceeds of qualified
qualified low-income communities. A taxpayer that makes
equity investments that have been certified under KRS 141.433
a qualified equity investment as provided by KRS 141.432(7)
shall be $10 million, whether made by one or several qualified
in a qualified community development entity as provided by
community development entities.
KRS 141.432(6) shall be entitled to a nonrefundable tax credit
against the taxes imposed by KRS 141.020, 141.040, 141.0401,
The amount of the credit shall be equal to 39% of the purchase
price of the qualified equity investment made by the taxpayer.
136.320, 136.330, 136.340, 136.350, 137.370, 136.390 or 304.3-
270. The total amount of tax credits that may be awarded by
A taxpayer is allowed to claim zero percent (0%) for each of
the department shall be limited to $5 million. “Qualified low-
the first two credit allowance dates, seven percent (7%) for the
income community investment” means any capital or equity
third allowance date, and eight percent (8%) for the next four
investment in, or loan to, any qualified active low-income
allowance dates. “Credit allowance date” means with respect
community business made after June 4, 2010. With respect to
to any qualified equity investment: (a) the date on which the
any one qualified active low-income community business, the
investment is initially made; and (b) each of the six anniversary
maximum amount of qualified active low-income community
dates of that date thereafter.
FILING FORM GUIDE
Kentucky Form and Tax
Corporation
Form
Income
Type of Entity
Required
Tax
LLET
1. C corporation
720
Yes
Yes
2. C corporation (consolidated group as provided by
KRS 141.200(4))
720
Yes
Yes
3. C corporation (nexus consolidated group as provided
by KRS 141.200(11))
720
Yes
Yes
4. Publicly traded partnership (taxed as a corporation
for federal income tax purposes)
720
Yes
Yes
5. S corporation
720S
Yes *
Yes
6. Single member limited liability company whose
single member is an individual
725
No
Yes
7. Limited liability company (two or more members)
765
No
Yes
8. Limited partnership
765
No
Yes
9. Limited liability partnership
765
No
Yes
10. General partnership
765-GP
No
No
11. Publicly traded partnership (taxed as a partnership
for federal income tax purposes)
765-GP
No
No
* If the S corporation has b uilt-in gains, passive investment income or installments of tax on the recapture of
LIFO benefits as provided by KRS 141.040(14).
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