KRS 141.017 — Deductions allowed by this chapter limited to amounts directly or indirectly subject to taxation under this chapter -- No item to be deducted more than once

(1) (a) All deductions allowed by this chapter shall be limited to amounts directly or
indirectly allocable to income subject to taxation under the provisions of this
chapter.
(b) Any deduction directly or indirectly allocable to income which is either
exempt from taxation or otherwise not taxed under this chapter shall not be
allowed.
(c) This subsection does not apply to deductions allowed under Pub. L. No. 116 -
260, secs. 276 and 278, related to the tax treatment of forgiven covered loans
and deductions attributable to those loans for taxable years ending on or after
March 27, 2020, but before taxable years beginning January 1, 2022.
(d) This subsection shall not apply to deductions allowed under Pub. L. No. 117 -
2, sec. 9673, relating to amounts allocable to income from grants to
restaurants and other food service eligible entities under the restaurant
revitalization grants program for taxable years beginning on or after January
1, 2020, but before March 11, 2023.
(2) Nothing in this chapter shall be construed to permit the same item to be deducted
more than once.