KRS 141.065 — Credit allowed for hiring person classified as unemployed

(1) For the purposes of this section, "code" or "Internal Revenue Code" means the
Internal Revenue Code in effect as of December 31, 1981.
(2) There shall be allowed as a credit for any taxpayer against the tax imposed by
KRS 141.020 or 141.040 and 141.0401 for any taxable year, with the ordering
of the credits as provided in KRS 141.0205, an amount equal to one hundred
dollars ($100) for each person hired by the taxpayer, if that person has been
classified as unemployed by the Office of Unemployment Insurance in the
Education and Labor Cabinet and has been so classified for at least sixty (60)
days prior to his employment by the taxpayer, and if further that person has
remained in the employ of the taxpayer for at least one hundred eighty (180)
consecutive days during the taxable year in which the taxpayer claims the
credit.
(3) No credit shall be allowed to any taxpayer for any person hired under any of
the following circumstances:
(a) A person for whom the taxpayer receives federally funded payments for
on-the-job training;
(b) For any person who bears any of the relationships to the taxpayer
described in paragraphs (1) through (8) of Section 152(a) of the Internal
Revenue Code, or, if the taxpayer is a corporation, to an individual who
owns, directly or indirectly, more than fifty percent (50%) in value of the
outstanding stock of the corporation as determined with the application of
Section 267(c) of the code;
(c) If the taxpayer is an estate or trust, to any person who is a grantor,
beneficiary, or fiduciary of the estate or trust, or is an individual who bears
any of the relationships described in paragraphs (1) through (8) of Section
152(a) of the code to a grantor, beneficiary, or fiduciary of the estate or
trust; or
(d) To any person who is a dependent of the taxpayer as described in code
Section 152(a)(9), or, if the taxpayer is an estate or trust, of a grantor,
beneficiary, or fiduciary of the estate or trust.
(4) For purposes of this section, all employees of all corporations which are
members of the same controlled group of corporations shall be treated as
employed by a single employer. In no instance shall the credit, if any, allowable
by subsection (2) of this section for any employee qualified thereunder be
claimed more than once for any taxable year by such a controlled group of
corporations. For purposes of this subsection, the term "controlled group of
corporations" has the meaning given to that term by code Section 1563(a),
except that "more than fifty percent (50%)" shall be substituted for "at least
eighty percent (80%)" each place it appears in code Section 1563(a)(1), and
the determination shall be made without regard to subsections (a)(4) and
(e)(3)(c) of code Section 1563.
(5) For purposes of this section, all employees of trades or businesses (whether or
not incorporated) which are under common control shall be treated as
employed by a single employer, and in no instance shall the credit, if any,
allowable by subsection (2) of this section for any employee qualified
thereunder be claimed more than once for any taxable year.
(6) No credit shall be allowed under subsection (2) of this section to any
organization which is exempt from income tax by this chapter.
(7) In the case of a pass-through entity, the amount of the credit determined under
this section for any taxable year shall be applied at the entity level against the
limited liability entity tax imposed by KRS 141.0401 and shall also be
apportioned pro rata among the members, partners, or shareholders of the
limited liability entity on the last day of the taxable year, and any person to
whom an amount is so apportioned shall be allowed, subject to code Section
53, a credit under subsection (2) of this section for that amount.
(8) In the case of an estate or trust, the amount of the credit determined under this
section for any taxable year shall be apportioned between the estate or trust
and the beneficiaries on the basis of income of the estate or trust allocable to
each, and any beneficiary to whom any amount has been apportioned under
this subsection shall be allowed, subject to code Section 53, a credit under
subsection (2) of this section for that amount.
(9) In no event shall the credit allowed, pursuant to this section, for any taxable
year exceed the tax liability of the taxpayer for the taxable year.