KRS 141.040 — Corporation income tax -- Exemptions -- Rate

(1) Every corporation doing business in this state, except those corporations listed in
paragraphs (a) and (b) of this subsection, shall pay for each taxable year a tax to be
computed by the taxpayer on taxable net income at the rates specified in this
section:
(a) For taxable years beginning prior to January 1, 2021:
1. Financial institutions, as defined in KRS 136.500, except bankers banks
organized under KRS 286.3-135;
2. Savings and loan associations organized under the laws of this state and
under the laws of the United States and making loans to members only;
3. Banks for cooperatives;
4. Production credit associations;
5. Insurance companies, including farmers' or other mutual hail, cyclone,
windstorm, or fire insurance companies, insurers, and reciprocal
underwriters;
6. Corporations or other entities exempt under Section 501 of the Internal
Revenue Code;
7. Religious, educational, charitable, or like corporations not organized or
conducted for pecuniary profit; and
8. Corporations whose only owned or leased property located in this state
is located at the premises of a printer with which it has contracted for
printing, provided that:
a. The property consists of the final printed product, or copy from
which the printed product is produced; and
b. The corporation has no individuals receiving compensation in this
state as provided in KRS 141.120(8)(b); and
(b) For taxable years beginning on or after January 1, 2021:
1. Insurance companies, including farmers' or other mutual hail, cyclone,
windstorm, or fire insurance companies, insurers, and reciprocal
underwriters;
2. Corporations or other entities exempt under S ection 501 of the Internal
Revenue Code;
3. Religious, educational, charitable, or like corporations not organized or
conducted for pecuniary profit;
4. Corporations whose only owned or leased property located in this state
is located at the premises of a printer with which it has contracted for
printing, provided that:
a. The property consists of the final printed product, or copy from
which the printed product is produced; and
b. The corporation has no individuals receiving compensation in this
state as provided in KRS 141.120(8)(b); and
5. For taxable years beginning before January 1, 2027, a disaster response
business.
(2) For taxable years beginning on or after January 1, 2018, the rate of five percent
(5%) of taxable net income shall apply.
(3) For tax able years beginning on or after January 1, 2007, and before January 1,
2018, the following rates shall apply:
(a) Four percent (4%) of the first fifty thousand dollars ($50,000) of taxable net
income;
(b) Five percent (5%) of taxable net income over fifty thousand dollars ($50,000)
up to one hundred thousand dollars ($100,000); and
(c) Six percent (6%) of taxable net income over one hundred thousand dollars
($100,000).
(4) (a) An S corporation shall pay income tax on the same items of income and in the
same manner as required for federal purposes, except to the extent required by
differences between this chapter and the federal income tax law and
regulations.
(b) 1. If the S corporation is required under Section 1363(d) of the Internal
Revenue Code to submi t installments of tax on the recapture of LIFO
benefits, installments to pay the Kentucky tax due shall be paid on or
before the due date of the S corporation's return, as extended, if
applicable.
2. Notwithstanding KRS 141.170(3), no interest shall be ass essed on the
installment payment for the period of extension.
(c) If the S corporation is required under Section 1374 or 1375 of the Internal
Revenue Code to pay tax on built -in gains or on passive investment income,
the amount of tax imposed by this subse ction shall be computed by applying
the highest rate of tax for the taxable year.