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141.405 Tax credit for company approved for occupational or skills upgrade training program under KRS 154.12-2084 to 154.12-2089 -- Administrative regulations.

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141.405 Tax credit for company approved for occupational or skills upgrade training program under KRS 154.12-2084 to 154.12-2089 -- Administrative <br>regulations. (1) As used in this section, unless the context requires otherwise: (a) &quot;Approved company&quot; has the same meaning as set forth in KRS 154.12-2084; <br>(b) &quot;Skills training investment credit&quot; has the same meaning as set forth in KRS 154.12-2084; (c) &quot;Kentucky gross receipts&quot; means Kentucky gross receipts as defined in KRS 141.0401; and (d) &quot;Kentucky gross profits&quot; means Kentucky gross profits as defined in KRS 141.0401. (2) An approved company shall determine the tax credit as provided in this section. <br>(3) (a) An approved company which is an individual sole proprietorship subject to tax under KRS 141.020 or a corporation or pass-through entity treated as a <br>corporation for federal income tax purposes subject to tax under KRS <br>141.040(1) shall: <br>1. Compute the tax due at the applicable tax rates as provided by KRS <br>141.020 or 141.040 on net income as defined by KRS 141.010(11) or <br>taxable net income as defined by KRS 141.010(14); 2. Compute the limited liability entity tax imposed under KRS 141.0401 on <br>Kentucky gross profits or Kentucky gross receipts; and 3. Add the amounts computed under subparagraphs 1. and 2. of this <br>paragraph and, if applicable, subtract the credit permitted by KRS <br>141.0401(3) from that sum. The resulting amount shall be the net tax for <br>purposes of this subsection; (b) The amount of the skills training investment credit that the Bluegrass State Skills Corporation has given final approval for under KRS 154.12-2088(6) <br>shall be applied against the net tax computed under paragraph (a)3. of this <br>subsection; and (c) The skills training investment credit payment shall not exceed the amount of the final approval awarded by the Bluegrass State Skills Corporation under <br>KRS 154.12-2088(6). (4) (a) In the case of an approved company which is a pass-through entity not subject to the tax imposed by KRS 141.040, the amount of the tax credit awarded by <br>the Bluegrass State Skills Corporation in KRS 154.12-2088(6) shall be taken <br>against the tax imposed by KRS 141.0401 by the approved company, and shall <br>also be apportioned among the partners, members, or shareholders thereof at <br>the same ratio as the partners', members', or shareholders' distributive shares <br>of income are determined for the tax year during which the final authorization <br>resolution is adopted by the Bluegrass State Skills Corporation in KRS <br>154.12-2088(6). (b) The amount of the tax credit apportioned to each partner, member, or shareholder that may be claimed in any tax year of the partner, member, or <br>shareholder shall be determined in accordance with the provisions of KRS <br>154.12-2086. (5) (a) In the case of an approved company that is a trust not subject to the tax imposed by KRS 141.040, the amount of the tax credit awarded by the <br>Bluegrass State Skills Corporation in KRS 154.12-2088(6) shall be <br>apportioned to the trust and the beneficiaries on the basis of the income of the <br>trust allocable to each for the tax year during which the final authorizing <br>resolution is adopted by the Bluegrass State Skills Corporation in KRS <br>154.12-2088(6). (b) The amount of tax credit apportioned to each trust or beneficiary that may be claimed in any tax year of the trust or beneficiary shall be determined in <br>accordance with the provisions of KRS 154.12-2086. (6) The Department of Revenue may promulgate administrative regulations in accordance with KRS Chapter 13A adopting forms and procedures for the reporting <br>of the credit allowed in KRS 154.12-2084 to 154.12-2089. Effective: June 28, 2006 <br>History: Amended 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 26, effective June 28, 2006. -- Amended 2006 Ky. Acts ch. 252, Pt. XIII, sec. 9, effective April 25, 2006. -- <br>Amended 2005 Ky. Acts ch. 85, sec. 508, effective June 20, 2005; and ch. 168, <br>sec. 27, effective March 18, 2005. -- Amended 2000 Ky. Acts ch. 300, sec. 4, <br>effective July 14, 2000. -- Created 1998 Ky. Acts ch. 499, sec. 5, effective July 15, <br>1998. Legislative Research Commission Note (6/28/2006). 2006 (1st Extra Sess.) Ky. Acts ch. 2, sec. 73, provides that &quot;unless a provision of this Act specifically applies to an <br>earlier tax year, the provisions of this Act shall apply to taxable years beginning on or <br>after January 1, 2007.&quot; Legislative Research Commission Note (3/18/2005). 2005 Ky. Acts ch. 168, sec. 165, provides that this section shall apply to tax years beginning on or after January 1, <br>2005.