KRS 141.424 — Biodiesel credit distribution for pass-through entities

(1) In the case of a biodiesel producer, biodiesel blender, or renewable diesel producer
which is a pass-through entity not subject to tax under KRS 141.040, the amount of
approved credit shall be applied against the tax imposed by KRS 141.0401 at the
entity level, and shall also be distributed to each partner, member, shareholder, or
beneficiary based on the partner's, member's, shareholder's, or beneficiary's
distributive share of the income of the pass -through entity. Each biodiesel producer,
biodiesel blend er, or renewable diesel producer shall notify the department
electronically of all partners, members, shareholders, or beneficiaries who may
claim any amount of the approved credit. Failure to provide information to the
department in a manner prescribed by administrative regulation may constitute the
forfeiture of available credits to all partners, members, shareholders, or beneficiaries
in the pass-through entity.
(2) An agricultural cooperative association organized under KRS Chapter 272 or 272A
may elect to apportion pro rata any amount of the approved credit among the
members of the association and, if a limited cooperative association, among patron
members only, on the basis of the quantity or value of business done with or for
such members for the taxa ble year. The agricultural cooperative association shall
notify the department electronically of all members who may claim any amount of
the approved credit if the election is made.