(1) 154.60-040 Farmer small business tax credit -- Application requirements -- Maximum credits permitted

In order to be eligible to receive approval for a tax credit, a selling farmer shall have, at a minimum: (a) 1

Demonstrated the active use, management, and operation of real and personal property for the production of a farm product; Executed and effectuated a purchase contract to sell agricultural land with a beginning farmer for an amount evidenced by an appraisal; and 2

(b) Sold, conveyed, and transferred ownership of related agricultural land and assets to a beginning farmer

(2) The selling farmer shall submit an application after consummation of the sale, transfer of title, and conveyance of a farm and farming assets together with all information necessary for the authority to determine eligibility for the tax credit

(3) An application for the farmer small business tax credit shall contain, at a minimum, information about the: (a) Selling farmer and purchasing beginning farmer eligibility; (b) Purchase contract and closing statement; (c) Documentation, such as a deed, title conveyance for the transfer of assets, including verification of Kentucky residency; and (d) Any other information the authority may require to determine eligibility for (4) (a) the credit

The maximum amount of the farmer small business tax credit for an approved selling farmer in each calendar year shall not exceed twenty-five thousand dollars ($25,000) and shall be prorated based on factors determined by the authority

(b) The maximum amount of credit an individual may claim over a lifetime shall not exceed one hundred thousand dollars ($100,000)

The credit shall be claimed on the tax return for the year during which the credit was approved. Unused credits may be carried forward for up to five (5) years

(c) (5) Beginning January 1, 2020, the authority may approve farmer small business tax credits for selling farmers

Effective:March 26, 2019 History: Created 2019 Ky. Acts ch. 172, sec. 7, effective March 26, 2019