KRS 141.063 — Skills training investment credits allowed by KRS 154.12-204 to 154.12-208 -- Application to income tax obligations -- Annual report

(1) As used in this section, unless the context requires otherwise:
(a) "Approved company" has the same meaning as in KRS 154.12-204;
(b) "Corporation" has the same meaning as in KRS 154.12-204;
(c) "Occupational upgrade training" has the same meaning as in KRS 154.12-204;
(d) "Qualified company" has the same meaning as in KRS 154.12-204;
(e) "Skills training inve stment credit" has the same meaning as in KRS 154.12 -
204; and
(f) "Skills upgrade training" has the same meaning as in KRS 154.12-204.
(2) For taxable years beginning on or after July 1, 2022, the corporation shall not accept
applications for the skills training investment credits allowed by KRS 154.12-204 to
154.12-208.
(3) The amount of skills training investment credit awarded by the corporation under
KRS 154.12-204 to 154.12 -208 shall be credited on the tax return of the approved
company in the year the corporation's closeout of approved training costs were
incurred. The skills training investment credits allowed shall only be used by the
approved company that has been awarded the credits in accordance with KRS
154.12-204 to 154.12-208. The skills training investment credits shall be applied to
the income tax imposed by KRS 141.020 or 141.040. The credit may also be
applied to the limited liability entity tax imposed by KRS 141.0401, with the order
of the credits as provided in KRS 141.0205. These credits shall be in addition to all
other tax credits granted under the laws of the Commonwealth.
(4) The skills training investment credit may be carried forward for three (3) successive
fiscal years by the approved company if the amount allowable as credits exceeds the
income tax liability of the approved company in the tax year during which the final
closeout of the approved training costs were incurred. Any excess credits shall not
be refundable or carried forward beyond the third fiscal year.
(5) A qualified company shall not be entitled to receive the grant -in-aid under KRS
154.12-207 or skills training investment credits if the qualified company requires
the employee to reimburse the employer or otherwise pay for any costs or expenses
incurred in connection with the occupational upgrade training or skills upgrade
training.
(6) To the extent that any expenditures of a qualified company constitute approved
costs and are the basis for the skills upgrade or occupational upgrade training under
KRS 154.12 -207, thes e expenditures shall only be eligible as the basis for either
grants-in-aid or skills training investment credits.
(7) By October 1 of each year, the Department of Revenue shall certify to the
corporation the amount of any skills training investment credit s taken pursuant to
KRS 154.12-207 on tax returns filed during the fiscal year ending June 30 of that
year.
(8) The Department of Revenue may promulgate administrative regulations in
accordance with KRS Chapter 13A to adopt forms and procedures for the rep orting
of the credit authorized in KRS 154.12-204 to 154.12-208.
(9) (a) In order for the General Assembly to evaluate the fulfillment of the purposes
of this section, the department shall submit the following information, related
to each taxable year that a grant -in-aid under KRS 154.12 -207 or skills
training investment credit is claimed on any income tax return filed:
1. The cumulative amount of tax credits by taxable year claimed by entity
type, including:
a. Person;
b. Corporation;
c. Limited liability company;
d. Partnership;
e. Limited partnership;
f. Sole proprietorship;
g. Holding company;
h. Joint stock company;
i. Professional services corporation; or
j. Any other legal entity through which business is conducted;
2. The number of returns filed claiming a tax credit for each taxable year
by entity type;
3. In the case of a taxpayer other than a corporation, based on the mailing
address of the return, the total amount of credits claimed by county;
4. In the case of a taxpayer other than a corporation, based on ranges of
adjusted gross income of no larger than five thousa nd dollars ($5,000),
the total amount of credit claimed for each adjusted gross income range
by taxable year; and
5. In the case of a corporation, based on ranges of net income no larger
than fifty thousand dollars ($50,000), the total amount of credit cl aimed
for each net income range.
(b) The report required by paragraph (a) of this subsection shall be submitted to
the Interim Joint Committee on Appropriations and Revenue beginning no
later than November 1, 2018, and no later than each November 1 thereafter, as
long as the skills training investment credit is claimed on any return processed
by the department.