KRS 141.405 — Tax credit for company approved for occupational or skills upgrade training program under KRS 154.12-2084 to 154.12-2089 -- Administrative regulations

(1) As used in this section, unless the context requires otherwise:
(a) "Approved company" has the same meaning as set forth in KRS 154.12-2084;
(b) "Skills training investment credit" has the same meaning as set forth in KRS
154.12-2084;
(c) "Kentucky gross receipts" means Kentucky gross receipts as defined in KRS
141.0401; and
(d) "Kentucky gro ss profits" means Kentucky gross profits as defined in KRS
141.0401.
(2) An approved company shall determine the tax credit as provided in this section.
(3) (a) An approved company which is an individual sole proprietorship subject to
tax under KRS 141.020 or a corporation or pass -through entity treated as a
corporation for federal income tax purposes subject to tax under KRS 141.040
shall:
1. Compute the tax due at the applicable tax rates as provided by KRS
141.020 or 141.040 on net income or taxable net income;
2. Compute the limited liability entity tax imposed under KRS 141.0401 on
Kentucky gross profits or Kentucky gross receipts; and
3. Add the amounts computed under subparagraphs 1. and 2. of this
paragraph and, if applicable, subtract the credit pe rmitted by KRS
141.0401(3) from that sum. The resulting amount shall be the net tax for
purposes of this subsection;
(b) The amount of the skills training investment credit that the Bluegrass State
Skills Corporation has given final approval for under KRS 154.12-2088(6)
shall be applied against the net tax computed under paragraph (a)3. of this
subsection; and
(c) The skills training investment credit payment shall not exceed the amount of
the final approval awarded by the Bluegrass State Skills Corporation under
KRS 154.12-2088(6).
(4) (a) In the case of an approved company which is a pass -through entity not subject
to the tax imposed by KRS 141.040, the amount of the tax credit awarded by
the Bluegrass State Skills Corporation in KRS 154.12 -2088(6) shall be taken
against the tax imposed by KRS 141.0401 by the approved company, and shall
also be apportioned among th e partners, members, or shareholders thereof at
the same ratio as the partners', members', or shareholders' distributive shares
of income are determined for the tax year during which the final authorization
resolution is adopted by the Bluegrass State Skil ls Corporation in KRS
154.12-2088(6).
(b) The amount of the tax credit apportioned to each partner, member, or
shareholder that may be claimed in any tax year of the partner, member, or
shareholder shall be determined in accordance with the provisions of K RS
154.12-2086.
(5) (a) In the case of an approved company that is a trust not subject to the tax
imposed by KRS 141.040, the amount of the tax credit awarded by the
Bluegrass State Skills Corporation in KRS 154.12 -2088(6) shall be
apportioned to the trust and the beneficiaries on the basis of the income of the
trust allocable to each for the tax year during which the final authorizing
resolution is adopted by the Bluegrass State Skills Corporation in KRS
154.12-2088(6).
(b) The amount of tax credit apporti oned to each trust or beneficiary that may be
claimed in any tax year of the trust or beneficiary shall be determined in
accordance with the provisions of KRS 154.12-2086.
(6) The Department of Revenue may promulgate administrative regulations in
accordance with KRS Chapter 13A adopting forms and procedures for the reporting
of the credit allowed in KRS 154.12-2084 to 154.12-2089.