KRS 141.522 — Education Opportunity Account Program tax credit -- Cap on credit -- Prioritization. (See LRC Note below)

accordance with the EOA program. To qualify for this credit, a taxpayer filing
as an individual shall elect to claim a federal and Kentucky contribution
deduction associated with the contributions made to an AGO that does not
exceed an amount equal to the total contribution fo r the taxable year less the
amount of credit allowed by this section for the taxable year.
(b) If the taxpayer is a pass -through entity, the taxpayer shall apply the credit
against the limited liability entity tax imposed by KRS 141.0401, and shall
also pa ss the credit through to its members, partners, or shareholders in the
same proportion as the distributive share of income or loss is passed through.
(2) The aggregate value of the total annual tax credit cap awarded shall not exceed
twenty-five million dollars ($25,000,000).
(3) The credit amount awarded per taxpayer per taxable year shall be no more than the
lesser of:
(a) Ninety-five percent (95%) of the total contributions made to an AGO, except
as provided in subsection (4) of this section; or
(b) One million dollars ($1,000,000).
(4) (a) The taxpayer may elect to pledge a contribution for multiple taxable years, not
to exceed a total of four (4) taxable years.
(b) If the multi -year pledge is made by the taxpayer and the amount of the
contributions for each of the multiple taxable years is equal to or more than
the amount of contributions made to the AGO in the taxable year within
which the pledge is made, the amount of allowable credit shall be increased
by two (2) percentage points to ninety-seven percent (97%) in the taxable year
within which the pledge is made and for each pledged year.
(c) If the taxpayer does not remit the pledged amount of contributions during any
taxable year for which a multi -year pledge is made, the taxpayer shall repay
the portion of the credit resulting from the increase allowed by this
subsection.
(5) Any tax credit awarded under this section that is not used by the taxpayer in the
current taxable year may be carried forward for up to five (5) succeeding taxable
years until the tax credit has been utilized.
(6) Tax credits under this section shall be awarded on a fir st-come, first-served basis
each fiscal year within the limitations set forth in this section. The date and time
stamp from each application for preapproval shall establish the order in which the
application was received. For contributions pledged for mult iple tax years, the
contribution shall be considered the first in line for the years subsequent to the
initial year of the pledge.