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141.4246 Ethanol or cellulosic ethanol credit distribution for pass-through entities.

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Page 1 of 1 141.4246 Ethanol or cellulosic ethanol credit distribution for pass-through entities. (1) An ethanol producer or a cellulosic ethanol producer that is a pass-through entity not subject to tax under KRS 141.040 shall apply the amount of approved credit <br>against the tax imposed by KRS 141.0401 at the entity level, and shall also <br>distribute the amount of the approved credit to each partner, member, shareholder, <br>or beneficiary based on the partner's, member's, shareholder's, or beneficiary's <br>distributive share of the income of the pass-through entity. (2) Each ethanol producer or cellulosic ethanol producer shall notify the department electronically of all partners, members, shareholders, or beneficiaries who may <br>claim any amount of the approved credit. Failure to provide information to the <br>department in a manner prescribed by administrative regulation may result in the <br>forfeiture of available credits to all partners, members, shareholders, or beneficiaries <br>in the pass-through entity. (3) An agricultural cooperative association organized under KRS Chapter 272 may elect to apportion pro rata any amount of the approved credit among the members of <br>the association on the basis of the quantity or value of business done with or for <br>such members for the taxable year. The agricultural cooperative association shall <br>notify the department electronically of all members who may claim any amount of <br>the approved credit if the election is made. (4) Failure to provide information to the department in a manner prescribed by administrative regulation may result in the forfeiture of available credits to all <br>partners, members, shareholders, or beneficiaries in the pass-through entity or <br>agricultural cooperative association. Effective: August 30, 2007 <br>History: Created 2007 (2d Extra. Sess.) Ky. Acts ch. 1, sec. 25, effective August 30, 2007.