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AN ACT relating to tax credits for support provided to victims of domestic 1
violence. 2
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 3
SECTION 1. A NEW SECTION OF KRS CHAPTER 141 IS CREATED TO 4
READ AS FOLLOWS: 5
(1) For purposes of this section: 6
(a) "Domestic violence shelter" means: 7
1. A tax-exempt organization under Section 501(c)(3) of the Internal 8
Revenue Code; and 9
2. A facility located in this state that provides services to individuals who 10
have been abused by: 11
a. A spouse; 12
b. A former spouse; 13
c. An intimate partner who meets the definition of a member of an 14
unmarried couple pursuant to KRS 403.720; or 15
d. A member of a dating relationship as defined in KRS 456.010; 16
(b) "Qualified contribution" means a monetary donation or donation of real 17
property; and 18
(c) "Rape crisis center" means a tax-exempt organization under Section 19
501(c)(3) of the Internal Revenue Code that is: 20
1. Located in this state and provides services in accordance with KRS 21
211.600(3); and 22
2. Designated as such by the Cabinet for Health and Family Services in 23
accordance with KRS 211.600. 24
(2) (a) For taxable years beginning on or after January 1, 2026, but before 25
January 1, 2030, there shall be allowed a nonrefundable credit against the 26
taxes imposed in KRS 141.020 or 141.040 and 141.0401 for qualified 27 UNOFFICIAL COPY 25 RS BR 963
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contributions made to a domestic violence shelter or rape crisis center in 1
this state with the ordering of the credits as provided in Section 6 of this Act. 2
(b) In order for a taxpayer to qualify for the credit under this section, a 3
minimum qualified contribution of one hundred dollars ($100) shall be 4
required. 5
(c) The credit shall be equal to the qualified contribution not to exceed the 6
lesser of: 7
1. Seventy percent (70%) of the total contributions made for the taxable 8
year; or 9
2. Fifty thousand dollars ($50,000) per taxable year. 10
(d) Any unused credit in a taxable year may be carried forward to the 11
succeeding taxable year, but shall not extend beyond one (1) taxable year. 12
(e) Any taxpayer claiming a credit under this section shall not also take a 13
deduction under Sections 2 and 3 of this Act for the same contribution. 14
(3) (a) In order for the General Assembly to evaluate the effectiveness of this 15
credit, the department shall submit the following information to the 16
Legislative Research Commission and the Interim Joint Committee on 17
Appropriations and Revenue on or before November 1, 2027, and on or 18
before each November 1 thereafter as long as the qualified contribution 19
credit may be claimed on a return: 20
1. The location of the taxpayer claiming the credit, by county, as 21
reflected on the return filed for the taxable year; 22
2. The amount of qualified contribution credits claimed by the taxpayer 23
for the taxable year; 24
3. The total cumulative amount of all qualified contribution credits 25
claimed for the taxable year; and 26
4. a. In the case of all taxpayers other than corporations, based on 27 UNOFFICIAL COPY 25 RS BR 963
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ranges of adjusted gross income of no larger than five thousand 1
dollars ($5,000) for the taxable year, the total amount of credit 2
claimed and the total number of returns claiming this credit for 3
each income range. 4
b. In the case of all corporations, based on ranges of net income no 5
larger than fifty thousand dollars ($50,000) for the taxable year, 6
the total amount of credit claimed and the number of returns 7
claiming a credit for each net income range. 8
(b) The information required to be reported under this section shall not be 9
considered confidential taxpayer information and shall not be subject to 10
KRS Chapter 131 or any other provisions of the Kentucky Revised Statutes 11
prohibiting disclosure or reporting of information. 12
Section 2. KRS 141.019 is amended to read as follows: 13
In the case of taxpayers other than corporations: 14
(1) Adjusted gross income shall be calculated by subtracting from the gross income of 15
those taxpayers the deductions allowed individuals by Section 62 of the Internal 16
Revenue Code and adjusting as follows: 17
(a) Exclude income that is exempt from state taxation by the Kentucky 18
Constitution and the Constitution and statutory laws of the United States; 19
(b) Exclude income from supplemental annuities provided by the Railroad 20
Retirement Act of 1937 as amended and which are subject to federal income 21
tax by Pub. L. No. 89-699; 22
(c) Include interest income derived from obligations of sister states and political 23
subdivisions thereof; 24
(d) Exclude employee pension contributions picked up as provided for in KRS 25
6.505, 16.545, 21.360, 61.523, 61.560, 65.155, 67A.320, 67A.510, 78.610, 26
and 161.540 upon a ruling by the Internal Revenue Service or the federal 27 UNOFFICIAL COPY 25 RS BR 963
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courts that these contributions shall not be included as gross income until such 1
time as the contributions are distributed or made available to the employee; 2
(e) Exclude Social Security and railroad retirement benefits subject to federal 3
income tax; 4
(f) Exclude any money received because of a settlement or judgment in a lawsuit 5
brought against a manufacturer or distributor of "Agent Orange" for damages 6
resulting from exposure to Agent Orange by a member or veteran of the 7
Armed Forces of the United States or any dependent of such person who 8
served in Vietnam; 9
(g) 1. a. For taxable years beginning after December 31, 2005, but before 10
January 1, 2018, exclude up to forty-one thousand one hundred ten 11
dollars ($41,110) of total distributions from pension plans, annuity 12
contracts, profit-sharing plans, retirement plans, or employee 13
savings plans; and 14
b. For taxable years beginning on or after January 1, 2018, exclude 15
up to thirty-one thousand one hundred ten dollars ($31,110) of 16
total distributions from pension plans, annuity contracts, profit-17
sharing plans, retirement plans, or employee savings plans. 18
2. As used in this paragraph: 19
a. "Annuity contract" has the same meaning as set forth in Section 20
1035 of the Internal Revenue Code; 21
b. "Distributions" includes but is not limited to any lump-sum 22
distribution from pension or profit-sharing plans qualifying for the 23
income tax averaging provisions of Section 402 of the Internal 24
Revenue Code; any distribution from an individual retirement 25
account as defined in Section 408 of the Internal Revenue Code; 26
and any disability pension distribution; and 27 UNOFFICIAL COPY 25 RS BR 963
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c. "Pension plans, profit-sharing plans, retirement plans, or employee 1
savings plans" means any trust or other entity created or organized 2
under a written retirement plan and forming part of a stock bonus, 3
pension, or profit-sharing plan of a public or private employer for 4
the exclusive benefit of employees or their beneficiaries and 5
includes plans qualified or unqualified under Section 401 of the 6
Internal Revenue Code and individual retirement accounts as 7
defined in Section 408 of the Internal Revenue Code; 8
(h) 1. a. Exclude the portion of the distributive share of a shareholder's net 9
income from an S corporation subject to the franchise tax imposed 10
under KRS 136.505 or the capital stock tax imposed under KRS 11
136.300; and 12
b. Exclude the portion of the distributive share of a shareholder's net 13
income from an S corporation related to a qualified subchapter S 14
subsidiary subject to the franchise tax imposed under KRS 15
136.505 or the capital stock tax imposed under KRS 136.300. 16
2. The shareholder's basis of stock held in an S corporation where the S 17
corporation or its qualified subchapter S subsidiary is subject to the 18
franchise tax imposed under KRS 136.505 or the capital stock tax 19
imposed under KRS 136.300 shall be the same as the basis for federal 20
income tax purposes; 21
(i) Exclude income received for services performed as a precinct worker for 22
election training or for working at election booths in state, county, and local 23
primaries or regular or special elections; 24
(j) Exclude any capital gains income attributable to property taken by eminent 25
domain; 26
(k) 1. Exclude all income from all sources for members of the Armed Forces 27 UNOFFICIAL COPY 25 RS BR 963
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who are on active duty and who are killed in the line of duty, for the 1
year during which the death occurred and the year prior to the year 2
during which the death occurred. 3
2. For the purposes of this paragraph, "all income from all sources" shall 4
include all federal and state death benefits payable to the estate or any 5
beneficiaries; 6
(l) Exclude all military pay received by members of the Armed Forces while on 7
active duty; 8
(m) 1. Include the amount deducted for depreciation under 26 U.S.C. sec. 167 9
or 168; and 10
2. Exclude the amounts allowed by KRS 141.0101 for depreciation; 11
(n) Include the amount deducted under 26 U.S.C. sec. 199A; 12
(o) Ignore any change in the cost basis of the surviving spouse's share of property 13
owned by a Kentucky community property trust occurring for federal income 14
tax purposes as a result of the death of the predeceasing spouse; 15
(p) Allow the same treatment allowed under Pub. L. No. 116-260, secs. 276 and 16
278, related to the tax treatment of forgiven covered loans, deductions 17
attributable to those loans, and tax attributes associated with those loans for 18
taxable years ending on or after March 27, 2020, but before January 1, 2022; 19
and 20
(q) For taxable years beginning on or after January 1, 2020, but before March 11, 21
2023, allow the same treatment of restaurant revitalization grants in 22
accordance with Pub. L. No. 117-2, sec. 9673 and 15 U.S.C. sec. 9009c, 23
related to the tax treatment of the grants, deductions attributable to those 24
grants, and tax attributes associated with those grants; and 25
(2) Net income shall be calculated by subtracting from adjusted gross income all the 26
deductions allowed individuals by Chapter 1 of the Internal Revenue Code, as 27 UNOFFICIAL COPY 25 RS BR 963
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modified by KRS 141.0101, except: 1
(a) Any deduction allowed by 26 U.S.C. sec. 164 for taxes; 2
(b) Any deduction allowed by 26 U.S.C. sec. 165 for losses, except wagering 3
losses allowed under Section 165(d) of the Internal Revenue Code; 4
(c) Any deduction allowed by 26 U.S.C. sec. 213 for medical care expenses; 5
(d) Any deduction allowed by 26 U.S.C. sec. 217 for moving expenses; 6
(e) Any deduction allowed by 26 U.S.C. sec. 67 for any other miscellaneous 7
deduction; 8
(f) Any deduction allowed by the Internal Revenue Code for amounts allowable 9
under KRS 140.090(1)(h) in calculating the value of the distributive shares of 10
the estate of a decedent, unless there is filed with the income return a 11
statement that the deduction has not been claimed under KRS 140.090(1)(h); 12
(g) Any deduction allowed by 26 U.S.C. sec. 151 for personal exemptions and 13
any other deductions in lieu thereof; 14
(h) Any deduction allowed for amounts paid to any club, organization, or 15
establishment which has been determined by the courts or an agency 16
established by the General Assembly and charged with enforcing the civil 17
rights laws of the Commonwealth, not to afford full and equal membership 18
and full and equal enjoyment of its goods, services, facilities, privileges, 19
advantages, or accommodations to any person because of race, color, religion, 20
national origin, or sex, except nothing shall be construed to deny a deduction 21
for amounts paid to any religious or denominational club, group, or 22
establishment or any organization operated solely for charitable or educational 23
purposes which restricts membership to persons of the same religion or 24
denomination in order to promote the religious principles for which it is 25
established and maintained;[ and] 26
(i) Any deduction allowed by 26 U.S.C. sec. 170 for a contribution that is 27 UNOFFICIAL COPY 25 RS BR 963
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claimed as a qualified contribution for credit under Section 1 of this Act; 1
and 2
(j) A taxpayer may elect to claim the standard deduction allowed by KRS 3
141.081 instead of itemized deductions allowed pursuant to 26 U.S.C. sec. 63 4
and as modified by this section. 5
Section 3. KRS 141.039 is amended to read as follows: 6
In the case of corporations: 7
(1) Gross income shall be calculated by adjusting federal gross income as defined in 8
Section 61 of the Internal Revenue Code as follows: 9
(a) Exclude income that is exempt from state taxation by the Kentucky 10
Constitution and the Constitution and statutory laws of the United States; 11
(b) Exclude all dividend income; 12
(c) Include interest income derived from obligations of sister states and political 13
subdivisions thereof; 14
(d) Exclude fifty percent (50%) of gross income derived from any disposal of 15
coal covered by Section 631(c) of the Internal Revenue Code if the 16
corporation does not claim any deduction for percentage depletion, or for 17
expenditures attributable to the making and administering of the contract 18
under which such disposition occurs or to the preservation of the economic 19
interests retained under such contract; 20
(e) Include the amount calculated under KRS 141.205; 21
(f) Ignore the provisions of Section 281 of the Internal Revenue Code in 22
computing gross income; 23
(g) Include the amount of deprecation deduction calculated under 26 U.S.C. sec. 24
167 or 168; 25
(h) Allow the same treatment allowed under Pub. L. No. 116-260, secs. 276 and 26
278, related to the tax treatment of forgiven covered loans, deductions 27 UNOFFICIAL COPY 25 RS BR 963
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attributable to those loans, and tax attributes associated with those loans for 1
taxable years ending on or after March 27, 2020, but before January 1, 2022; 2
and 3
(i) For taxable years beginning on or after January 1, 2020, but before March 11, 4
2023, allow the same treatment of restaurant revitalization grants in 5
accordance with Pub. L. No. 117-2, sec. 9673 and 15 U.S.C. sec. 9009c, 6
related to the tax treatment of the grants, deductions attributable to those 7
grants, and tax attributes associated with those grants; and 8
(2) Net income shall be calculated by subtracting from gross income: 9
(a) The deduction for depreciation allowed by KRS 141.0101; 10
(b) Any amount paid for vouchers or similar instruments that provide health 11
insurance coverage to employees or their families; 12
(c) All the deductions from gross income allowed corporations by Chapter 1 of 13
the Internal Revenue Code, as modified by KRS 141.0101, except: 14
1. Any deduction for a state tax which is computed, in whole or in part, by 15
reference to gross or net income and which is paid or accrued to any 16
state of the United States, the District of Columbia, the Commonwealth 17
of Puerto Rico, any territory or possession of the United States, or to any 18
foreign country or political subdivision thereof; 19
2. The deductions contained in Sections 243, 245, and 247 of the Internal 20
Revenue Code; 21
3. The provisions of Section 281 of the Internal Revenue Code shall be 22
ignored in computing net income; 23
4. Any deduction directly or indirectly allocable to income which is either 24
exempt from taxation or otherwise not taxed under the provisions of this 25
chapter, except for deductions allowed under Pub. L. No. 116-260, secs. 26
276 and 278, related to the tax treatment of forgiven covered loans and 27 UNOFFICIAL COPY 25 RS BR 963
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deductions attributable to those loans for taxable years ending on or 1
after March 27, 2020, but before January 1, 2022; and deductions 2
allowed under Pub. L. No. 117-2, sec. 9673 and 15 U.S.C. sec. 9009c, 3
related to the tax treatment of restaurant revitalization grants and 4
deductions attributable to those grants for taxable years beginning on or 5
after January 1, 2020, but before March 11, 2023. Nothing in this 6
chapter shall be construed to permit the same item to be deducted more 7
than once; 8
5. Any deduction for amounts paid to any club, organization, or 9
establishment which has been determined by the courts or an agency 10
established by the General Assembly and charged with enforcing the 11
civil rights laws of the Commonwealth, not to afford full and equal 12
membership and full and equal enjoyment of its goods, services, 13
facilities, privileges, advantages, or accommodations to any person 14
because of race, color, religion, national origin, or sex, except nothing 15
shall be construed to deny a deduction for amounts paid to any religious 16
or denominational club, group, or establishment or any organization 17
operated solely for charitable or educational purposes which restricts 18
membership to persons of the same religion or denomination in order to 19
promote the religious principles for which it is established and 20
maintained; 21
6. Any deduction prohibited by KRS 141.205;[ and] 22
7. Any dividends-paid deduction of any captive real estate investment 23
trust; and 24
8. Any deduction allowed by 26 U.S.C. sec. 170 for a contribution that is 25
claimed as a qualified contribution for credit under Section 1 of this 26
Act; and 27 UNOFFICIAL COPY 25 RS BR 963
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(d) 1. A deferred tax deduction in an amount computed in accordance with this 1
paragraph. 2
2. For purposes of this paragraph: 3
a. "Net deferred tax asset" means that deferred tax assets exceed the 4
deferred tax liabilities of the combined group, as computed in 5
accordance with accounting principles generally accepted in the 6
United States of America; and 7
b. "Net deferred tax liability" means deferred tax liabilities that 8
exceed the deferred tax assets of a combined group as defined in 9
KRS 141.202, as computed in accordance with accounting 10
principles generally accepted in the United States of America. 11
3. Only publicly traded companies, including affiliated corporations 12
participating in the filing of a publicly traded company's financial 13
statements prepared in accordance with accounting principles generally 14
accepted in the United States of America, as of January 1, 2019, shall be 15
eligible for this deduction. 16
4. If the provisions of KRS 141.202 result in an aggregate increase to the 17
member's net deferred tax liability, an aggregate decrease to the 18
member's net deferred tax asset, or an aggregate change from a net 19
deferred tax asset to a net deferred tax liability, the combined group 20
shall be entitled to a deduction, as determined in this paragraph. 21
5. For ten (10) years beginning with the combined group's first taxable 22
year beginning on or after January 1, 2026, a combined group shall be 23
entitled to a deduction from the combined group's entire net income 24
equal to one-tenth (1/10) of the amount necessary to offset the increase 25
in the net deferred tax liability, decrease in the net deferred tax asset, or 26
aggregate change from a net deferred tax asset to a net deferred tax 27 UNOFFICIAL COPY 25 RS BR 963
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liability. The increase in the net deferred tax liability, decrease in the net 1
deferred tax asset, or the aggregate change from a net deferred tax asset 2
to a net deferred tax liability shall be computed based on the change that 3
would result from the imposition of the combined reporting requirement 4
under KRS 141.202, but for the deduction provided under this paragraph 5
as of June 27, 2019. 6
6. The deferred tax impact determined in subparagraph 5. of this paragraph 7
shall be converted to the annual deferred tax deduction amount, as 8
follows: 9
a. The deferred tax impact determined in subparagraph 5. of this 10
paragraph shall be divided by the tax rate determined under KRS 11
141.040; 12
b. The resulting amount shall be further divided by the 13
apportionment factor determined by KRS 141.120 or 141.121 that 14
was used by the combined group in the calculation of the deferred 15
tax assets and deferred tax liabilities as described in subparagraph 16
5. of this paragraph; and 17
c. The resulting amount represents the total net deferred tax 18
deduction available over the ten (10) year period as described in 19
subparagraph 5. of this paragraph. 20
7. The deduction calculated under this paragraph shall not be adjusted as a 21
result of any events happening subsequent to the calculation, including 22
but not limited to any disposition or abandonment of assets. The 23
deduction shall be calculated without regard to the federal tax effect and 24
shall not alter the tax basis of any asset. If the deduction under this 25
section is greater than the combined group's entire Kentucky net income, 26
any excess deduction shall be carried forward and applied as a deduction 27 UNOFFICIAL COPY 25 RS BR 963
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to the combined group's entire net income in future taxable years until 1
fully utilized. 2
8. Any combined group intending to claim a deduction under this 3
paragraph shall file a statement with the department on or before July 1, 4
2019. The statement shall specify the total amount of the deduction 5
which the combined group claims on the form, including calculations 6
and other information supporting the total amounts of the deduction as 7
required by the department. No deduction shall be allowed under this 8
paragraph for any taxable year, except to the extent claimed on the 9
timely filed statement in accordance with this paragraph. 10
SECTION 4. A NEW SECTION OF KRS CHAPTER 141 IS CREATED TO 11
READ AS FOLLOWS: 12
(1) There is hereby established a nonrefundable qualified rental credit for taxable 13
years beginning on or after January 1, 2026, but before January 1, 2030, against 14
the tax imposed under KRS 141.020 or 141.040 and 141.0401 for any taxpayer 15
who rents residential property to a protected tenant as defined in KRS 383.300. 16
(2) (a) The ordering of the credit shall be as provided in Section 6 of this Act. 17
(b) The credit shall be equal to five hundred dollars ($500) per residential 18
rental unit occupied by a protected tenant during the taxable year. 19
(3) (a) The taxpayer claiming the credit shall provide the name and Social Security 20
number of the protected tenant for which the credit is being claimed. 21
(b) The department shall coordinate and receive information from the 22
Administrative Office of the Courts to determine that an individual is 23
considered a protected tenant evidenced by a valid: 24
1. Domestic violence order pursuant to KRS 403.740; 25
2. Interpersonal protective order pursuant to KRS 456.060; 26
3. Emergency protective order pursuant to KRS 403.730; 27 UNOFFICIAL COPY 25 RS BR 963
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4. Temporary interpersonal protective order pursuant to KRS 456.040; or 1
5. Pretrial release order issued pursuant to KRS 431.064(2)(b). 2
(4) (a) In order for the General Assembly to evaluate the effectiveness of this 3
credit, the department shall provide the following information to the 4
Legislative Research Commission and the Interim Joint Committee on 5
Appropriations and Revenue no later than November 1, 2027, and on or 6
before each November 1 thereafter as long as the credit is claimed on any 7
return: 8
1. The cumulative amount of credits claimed by taxpayers for each 9
taxable year; 10
2. The cumulative number of returns that claimed the credit for each 11
taxable year; 12
3. Based on the mailing address of the return, the cumulative total 13
amount of credits claimed by county for each taxable year; and 14
4. a. In the case of taxpayers, other than corporations, based on 15
ranges of adjusted gross income of no larger than five thousand 16
dollars ($5,000) for the taxable year, the total amount of credit 17
claimed and the total number of returns claiming this credit for 18
each income range. 19
b. In the case of all corporations, based on ranges of net income of 20
no larger than fifty thousand dollars ($50,000) for the taxable 21
year, the total amount of credit claimed and the number of 22
returns claiming a credit for each net income range. 23
(b) The information required to be reported under this section shall not be 24
considered confidential taxpayer information and shall not be subject to 25
KRS Chapter 131 or any other provisions of the Kentucky Revised Statutes 26
prohibiting disclosure or reporting of information. 27 UNOFFICIAL COPY 25 RS BR 963
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SECTION 5. A NEW SECTION OF KRS CHAPTER 141 IS CREATED TO 1
READ AS FOLLOWS: 2
(1) For purposes of this section: 3
(a) "Domestic violence shelter" has the same meaning as in Section 1 of this 4
Act; and 5
(b) "Condemned property" means real or personal property that is condemned 6
under the provisions of KRS 416.540 to 416.670. 7
(2) For taxable years beginning on or after January 1, 2026, but before January 1, 8
2030, there shall be allowed a nonrefundable credit against the tax imposed 9
under KRS 141.020 or 141.040 and 141.0401 with the ordering of the credit as 10
provided in Section 6 of this Act. 11
(3) A credit of one thousand dollars ($1,000) shall be allowed in the taxable year in 12
which a taxpayer converts acquired condemned property into a domestic violence 13
shelter in this state. 14
(4) In order for the department to verify the credit, the taxpayer shall include with 15
their return verification from: 16
(a) The Circuit Court in the locality in which the property has been condemned 17
in accordance with KRS 416.540 to 416.670; and 18
(b) The Cabinet for Health and Family Services that determines the domestic 19
violence shelter meets the qualifications established in Section 1 of this Act. 20
(5) (a) In order for the General Assembly to evaluate the effectiveness of this 21
credit, the department shall provide the following information to the 22
Legislative Research Commission and the Interim Joint Committee on 23
Appropriations and Revenue no later than November 1, 2027, and on or 24
before each November 1 thereafter as long as the credit is claimed on any 25
return: 26
1. The cumulative amount of credits claimed by taxpayers for each 27 UNOFFICIAL COPY 25 RS BR 963
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taxable year; 1
2. The cumulative number of returns that claimed the credit for each 2
taxable year; 3
3. Based on the mailing address of the return, the cumulative total 4
amount of credits claimed by county for each taxable year; and 5
4. a. In the case of taxpayers, other than corporations, based on 6
ranges of adjusted gross income of no larger than five thousand 7
dollars ($5,000) for the taxable year, the total amount of credit 8
claimed and the total number of returns claiming this credit for 9
each income range. 10
b. In the case of corporations, based on ranges of net income of no 11
larger than fifty thousand dollars ($50,000) for the taxable year, 12
the total amount of credit claimed and the number of returns 13
claiming a credit for each net income range. 14
(b) The information required to be reported under this subsection shall not be 15
considered confidential taxpayer information and shall not be subject to 16
KRS Chapter 131 or any other provisions of the Kentucky Revised Statutes 17
prohibiting disclosure or reporting of information. 18
Section 6. KRS 141.0205 is amended to read as follows: 19
If a taxpayer is entitled to more than one (1) of the tax credits allowed against the tax 20
imposed by KRS 141.020, 141.040, and 141.0401, the priority of application and use of 21
the credits shall be determined as follows: 22
(1) The nonrefundable business incentive credits against the tax imposed by KRS 23
141.020 shall be taken in the following order: 24
(a) The limited liability entity tax credit permitted by KRS 141.0401; 25
(b) The economic development credits computed under KRS 141.347, 141.381, 26
141.384, 141.3841, 141.400, 141.403, 141.407, 141.415, 154.12-207, and 27 UNOFFICIAL COPY 25 RS BR 963
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154.12-2088; 1
(c) The qualified farming operation credit permitted by KRS 141.412; 2
(d) The certified rehabilitation credit permitted by KRS 171.397(1)(a); 3
(e) The health insurance credit permitted by KRS 141.062; 4
(f) The tax paid to other states credit permitted by KRS 141.070; 5
(g) The credit for hiring the unemployed permitted by KRS 141.065; 6
(h) The recycling or composting equipment credit permitted by KRS 141.390; 7
(i) The [tax ]credit for cash contributions in investment funds permitted by KRS 8
154.20-263 in effect prior to July 15, 2002, and the credit permitted by KRS 9
154.20-258; 10
(j) The research facilities credit permitted by KRS 141.395; 11
(k) The employer High School Equivalency Diploma program incentive credit 12
permitted under KRS 151B.402; 13
(l) The voluntary environmental remediation credit permitted by KRS 141.418; 14
(m) The biodiesel and renewable diesel credit permitted by KRS 141.423; 15
(n) The clean coal incentive credit permitted by KRS 141.428; 16
(o) The ethanol credit permitted by KRS 141.4242; 17
(p) The cellulosic ethanol credit permitted by KRS 141.4244; 18
(q) The energy efficiency credits permitted by KRS 141.436; 19
(r) The railroad maintenance and improvement credit permitted by KRS 141.385; 20
(s) The Endow Kentucky credit permitted by KRS 141.438; 21
(t) The New Markets Development Program credit permitted by KRS 141.434; 22
(u) The distilled spirits credit permitted by KRS 141.389; 23
(v) The angel investor credit permitted by KRS 141.396; 24
(w) The film industry credit permitted by KRS 141.383 for applications approved 25
on or after April 27, 2018, but before January 1, 2022; 26
(x) The inventory credit permitted by KRS 141.408; 27 UNOFFICIAL COPY 25 RS BR 963
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(y) The renewable chemical production credit permitted by KRS 141.4231;[ and] 1
(z) The qualified broadband investment [tax ]credit permitted by KRS 141.391; 2
(aa) The qualified contribution credit permitted by Section 1 of this Act; 3
(ab) The qualified rental credit permitted by Section 4 of this Act; and 4
(ac) The domestic violence shelter credit permitted by Section 5 of this Act; 5
(2) After the application of the nonrefundable credits in subsection (1) of this section, 6
the nonrefundable personal tax credits against the tax imposed by KRS 141.020 7
shall be taken in the following order: 8
(a) The individual credits permitted by KRS 141.020(3); 9
(b) The credit permitted by KRS 141.066; 10
(c) The tuition credit permitted by KRS 141.069; 11
(d) The household and dependent care credit permitted by KRS 141.067; 12
(e) The income gap credit permitted by KRS 141.066; and 13
(f) The Education Opportunity Account Program [tax ]credit permitted by KRS 14
141.522; 15
(3) After the application of the nonrefundable credits provided for in subsection (2) of 16
this section, the refundable credits against the tax imposed by KRS 141.020 shall be 17
taken in the following order: 18
(a) The individual withholding tax credit permitted by KRS 141.350; 19
(b) The individual estimated tax payment credit permitted by KRS 141.305; 20
(c) The certified rehabilitation credit permitted by KRS 171.3961, 171.3963, and 21
171.397(1)(b); 22
(d) The film industry [tax ]credit permitted by KRS 141.383 for applications 23
approved prior to April 27, 2018, or on or after January 1, 2022; 24
(e) The development area [tax ]credit permitted by KRS 141.398; 25
(f) The decontamination [tax ]credit permitted by KRS 141.419; and 26
(g) The pass-through entity tax credit permitted by KRS 141.209; 27 UNOFFICIAL COPY 25 RS BR 963
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(4) The nonrefundable credit permitted by KRS 141.0401 shall be applied against the 1
tax imposed by KRS 141.040; 2
(5) The following nonrefundable credits shall be applied against the sum of the tax 3
imposed by KRS 141.040 after subtracting the credit provided for in subsection (4) 4
of this section, and the tax imposed by KRS 141.0401 in the following order: 5
(a) The economic development credits computed under KRS 141.347, 141.381, 6
141.384, 141.3841, 141.400, 141.403, 141.407, 141.415, 154.12-207, and 7
154.12-2088; 8
(b) The qualified farming operation credit permitted by KRS 141.412; 9
(c) The certified rehabilitation credit permitted by KRS 171.397(1)(a); 10
(d) The health insurance credit permitted by KRS 141.062; 11
(e) The unemployment credit permitted by KRS 141.065; 12
(f) The recycling or composting equipment credit permitted by KRS 141.390; 13
(g) The coal conversion credit permitted by KRS 141.041; 14
(h) The enterprise zone credit permitted by KRS 154.45-090, for taxable periods 15
ending prior to January 1, 2008; 16
(i) The [tax ]credit for cash contributions to investment funds permitted by KRS 17
154.20-263 in effect prior to July 15, 2002, and the credit permitted by KRS 18
154.20-258; 19
(j) The research facilities credit permitted by KRS 141.395; 20
(k) The employer High School Equivalency Diploma program incentive credit 21
permitted by KRS 151B.402; 22
(l) The voluntary environmental remediation credit permitted by KRS 141.418; 23
(m) The biodiesel and renewable diesel credit permitted by KRS 141.423; 24
(n) The clean coal incentive credit permitted by KRS 141.428; 25
(o) The ethanol credit permitted by KRS 141.4242; 26
(p) The cellulosic ethanol credit permitted by KRS 141.4244; 27 UNOFFICIAL COPY 25 RS BR 963
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(q) The energy efficiency credits permitted by KRS 141.436; 1
(r) The ENERGY STAR home or ENERGY STAR manufactured home credit 2
permitted by KRS 141.437; 3
(s) The railroad maintenance and improvement credit permitted by KRS 141.385; 4
(t) The railroad expansion credit permitted by KRS 141.386; 5
(u) The Endow Kentucky credit permitted by KRS 141.438; 6
(v) The New Markets Development Program credit permitted by KRS 141.434; 7
(w) The distilled spirits credit permitted by KRS 141.389; 8
(x) The film industry credit permitted by KRS 141.383 for applications approved 9
on or after April 27, 2018, but before January 1, 2022; 10
(y) The inventory credit permitted by KRS 141.408; 11
(z) The renewable chemical production [tax ]credit permitted by KRS 141.4231; 12
(aa) The Education Opportunity Account Program [tax ]credit permitted by KRS 13
141.522;[ and] 14
(ab) The qualified broadband investment [tax ]credit permitted by KRS 141.391;[ 15
and] 16
(ac) The qualified contribution credit permitted by Section 1 of this Act; 17
(ad) The qualified rental credit permitted by Section 4 of this Act; and 18
(ae) The domestic violence shelter credit permitted by Section 5 of this Act; and 19
(6) After the application of the nonrefundable credits in subsection (5) of this section, 20
the refundable credits shall be taken in the following order: 21
(a) The corporation estimated tax payment credit permitted by KRS 141.044; 22
(b) The certified rehabilitation credit permitted by KRS 171.3961, 171.3963, and 23
171.397(1)(b); 24
(c) The film industry [tax ]credit permitted by KRS 141.383 for applications 25
approved prior to April 27, 2018, or on or after January 1, 2022; 26
(d) The decontamination [tax ]credit permitted by KRS 141.419; and 27 UNOFFICIAL COPY 25 RS BR 963
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(e) The pass-through entity tax credit permitted by KRS 141.209. 1
Section 7. KRS 131.190 is amended to read as follows: 2
(1) No present or former commissioner or employee of the department, present or 3
former member of a county board of assessment appeals, present or former property 4
valuation administrator or employee, present or former secretary or employee of the 5
Finance and Administration Cabinet, former secretary or employee of the Revenue 6
Cabinet, or any other person, shall intentionally and without authorization inspect 7
or divulge any information acquired by him or her of the affairs of any person, or 8
information regarding the tax schedules, returns, or reports required to be filed with 9
the department or other proper officer, or any information produced by a hearing or 10
investigation, insofar as the information may have to do with the affairs of the 11
person's business. 12
(2) The prohibition established by subsection (1) of this section shall not extend to: 13
(a) Information required in prosecutions for making false reports or returns of 14
property for taxation, or any other infraction of the tax laws; 15
(b) Any matter properly entered upon any assessment record, or in any way made 16
a matter of public record; 17
(c) Furnishing any taxpayer or his or her properly authorized agent with 18
information respecting his or her own return; 19
(d) Testimony provided by the commissioner or any employee of the department 20
in any court, or the introduction as evidence of returns or reports filed with the 21
department, in an action for violation of state or federal tax laws or in any 22
action challenging state or federal tax laws; 23
(e) Providing an owner of unmined coal, oil or gas reserves, and other mineral or 24
energy resources assessed under KRS 132.820, or owners of surface land 25
under which the unmined minerals lie, factual information about the owner's 26
property derived from third-party returns filed for that owner's property, under 27 UNOFFICIAL COPY 25 RS BR 963
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the provisions of KRS 132.820, that is used to determine the owner's 1
assessment. This information shall be provided to the owner on a confidential 2
basis, and the owner shall be subject to the penalties provided in KRS 3
131.990(2). The third-party filer shall be given prior notice of any disclosure 4
of information to the owner that was provided by the third-party filer; 5
(f) Providing to a third-party purchaser pursuant to an order entered in a 6
foreclosure action filed in a court of competent jurisdiction, factual 7
information related to the owner or lessee of coal, oil, gas reserves, or any 8
other mineral resources assessed under KRS 132.820. The department may 9
promulgate an administrative regulation establishing a fee schedule for the 10
provision of the information described in this paragraph. Any fee imposed 11
shall not exceed the greater of the actual cost of providing the information or 12
ten dollars ($10); 13
(g) Providing information to a licensing agency, the Transportation Cabinet, or 14
the Kentucky Supreme Court under KRS 131.1817; 15
(h) Statistics of gasoline and special fuels gallonage reported to the department 16
under KRS 138.210 to 138.448; 17
(i) Providing any utility gross receipts license tax return information that is 18
necessary to administer the provisions of KRS 160.613 to 160.617 to 19
applicable school districts on a confidential basis; 20
(j) Providing documents, data, or other information to a third party pursuant to an 21
order issued by a court of competent jurisdiction; 22
(k) Publishing administrative writings on its official website in accordance with 23
KRS 131.020(1)(b); or 24
(l) Providing information to the Legislative Research Commission under: 25
1. KRS 139.519 for purposes of the sales and use tax refund on building 26
materials used for disaster recovery; 27 UNOFFICIAL COPY 25 RS BR 963
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2. KRS 141.436 for purposes of the energy efficiency products credits; 1
3. KRS 141.437 for purposes of the ENERGY STAR home and the 2
ENERGY STAR manufactured home credits; 3
4. KRS 141.383 for purposes of the film industry incentives; 4
5. KRS 154.26-095 for purposes of the Kentucky industrial revitalization 5
tax credit[credits] and the job assessment fees; 6
6. KRS 141.068 for purposes of the Kentucky investment fund; 7
7. KRS 141.396 for purposes of the angel investor [tax ]credit; 8
8. KRS 141.389 for purposes of the distilled spirits credit; 9
9. KRS 141.408 for purposes of the inventory credit; 10
10. KRS 141.390 for purposes of the recycling and composting 11
credits[credit]; 12
11. KRS 141.3841 for purposes of the selling farmer [tax ]credit; 13
12. KRS 141.4231 for purposes of the renewable chemical production [tax 14
]credit; 15
13. KRS 141.524 for purposes of the Education Opportunity Account 16
Program [tax ]credit; 17
14. KRS 141.398 for purposes of the development area [tax ]credit; 18
15. KRS 139.516 for the purposes of [the ]sales and use tax exemptions 19
for[exemption on] the commercial mining of cryptocurrency; 20
16. KRS 141.419 for purposes of the decontamination [tax ]credit; 21
17. KRS 141.391 for purposes of the qualified broadband investment [tax 22
]credit;[ and] 23
18. KRS 139.499 for purposes of the sales and use tax 24
exemptions[exemption] for a qualified data center project; and 25
19. Section 1 of this Act for purposes of the qualified contribution credit; 26
20. Section 4 of this Act for purposes of the qualified rental credit; and 27 UNOFFICIAL COPY 25 RS BR 963
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21. Section 5 of this Act for purposes of the domestic violence shelter 1
credit. 2
(3) The commissioner shall make available any information for official use only and on 3
a confidential basis to the proper officer, agency, board or commission of this state, 4
any Kentucky county, any Kentucky city, any other state, or the federal 5
government, under reciprocal agreements whereby the department shall receive 6
similar or useful information in return. 7
(4) Access to and inspection of information received from the Internal Revenue Service 8
is for department use only, and is restricted to tax administration purposes. 9
Information received from the Internal Revenue Service shall not be made available 10
to any other agency of state government, or any county, city, or other state, and 11
shall not be inspected intentionally and without authorization by any present 12
secretary or employee of the Finance and Administration Cabinet, commissioner or 13
employee of the department, or any other person. 14
(5) Statistics of crude oil as reported to the department under the crude oil excise tax 15
requirements of KRS Chapter 137 and statistics of natural gas production as 16
reported to the department under the natural resources severance tax requirements 17
of KRS Chapter 143A may be made public by the department by release to the 18
Energy and Environment Cabinet, Department for Natural Resources. 19
(6) Notwithstanding any provision of law to the contrary, beginning with mine-map 20
submissions for the 1989 tax year, the department may make public or divulge only 21
those portions of mine maps submitted by taxpayers to the department pursuant to 22
KRS Chapter 132 for ad valorem tax purposes that depict the boundaries of mined-23
out parcel areas. These electronic maps shall not be relied upon to determine actual 24
boundaries of mined-out parcel areas. Property boundaries contained in mine maps 25
required under KRS Chapters 350 and 352 shall not be construed to constitute land 26
surveying or boundary surveys as defined by KRS 322.010 and any administrative 27 UNOFFICIAL COPY 25 RS BR 963
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regulations promulgated thereto. 1