Kentucky Notice of Kentucky New Markets Development Program Tax Credit and Certification

Notice of Kentucky New Markets Development Program Tax Credit and Certification
Form 8874(K)-A
8874(K)-A

*1600010320*

41A720-S81 (5-16)
Commonwealth of Kentucky
DEPARTMENT OF REVENUE

NOTICE OF KENTUCKY NEW MARKETS DEVELOPMENT
PROGRAM TAX CREDIT AND CERTIFICATION
KRS 141.433

➤ See instructions.

A	 Name of Qualified Community	
B	 Federal Identification Number	
Development Entity (CDE)	
of CDE	
					

C	 Kentucky Corporation/LLET
Account Number (if applicable)
of CDE

D	 Name of taxpayer making the qualified	

E	 Identification number of taxpayer 	
equity investment	
	 	
					
					 –

F	

Number and Street (taxpayer’s address)
				
	
					
					

G	 Certified purchase price of
the taxpayer’s qualified equity
investment

–

City

State

Kentucky Corporation/LLET
Account Number (if applicable)
of taxpayer			

Zip Code

					
$
									

H	 Date the CDE received cash for	

taxpayer’s qualified equity investment
			

 /     /

			
	

Mo.	

Day

I	

What type of entity is the taxpayer? 	

¨ Individual	

¨ Estate	

¨ Trust	

¨  General Partnership

¨ Corporation	 ¨  S Corporation	 ¨  Limited Liability Pass-through Entity	
Yr.

	 Under penalties of perjury, I declare that I have examined this form, including all
accompanying documents and statements, and to the best of my knowledge and belief,
it is true, correct and complete.
		

_______________________________________ 	

		

Signature of executive officer of CDE	

_______________________________________

		

___________________________________________________________________________________

		

Type or print name and title

Date

Department of Revenue Use Only
	
1.	 Total Allowable Credit
		 (add lines 2a through 2g)	

$		

	

2.	 a.	 Allowable credit: Year 1	

$	

0	

		 b.	Allowable credit: Year 2	

$	

0	

		 c.	 Allowable credit: Year 3 (7%)	

$	

		 d.	Allowable credit: Year 4 (8%)	

$	

		 e.	 Allowable credit: Year 5 (8%)	

$	

		 f.	 Allowable credit: Year 6 (8%)	

$	

		 g.	Allowable credit: Year 7 (8%)	

$	

		 The above tax credits are approved for each year.
		

By: 
___________________________________________ 	Date: 
______________________

Mail to Department of Revenue, Division of Corporation Tax, Station 52, 501 High Street, Frankfort, KY 40601–2103.

41A720-S81 (8874(K)–A) (5-16)

Page 2

Commonwealth of Kentucky
DEPARTMENT OF REVENUE

INSTRUCTIONS—NOTICE OF KENTUCKY NEW MARKETS
DEVELOPMENT PROGRAM TAX CREDIT AND CERTIFICATION
As provided by KRS 141.433(4), cash in the amount of the certified purchase price of the qualified equity investment
must be received by the qualified community development entity (CDE) from each taxpayer in exchange for the
taxpayer’s qualified equity investment within ninety (90) days after receipt of the approved application (Form
8874(K)) by the CDE. The CDE shall provide the department with evidence of the receipt of the cash in exchange for
the qualified equity investment within ten (10) business days after receipt of the cash. If the CDE does not receive
cash in the amount of certified purchase price of the qualified equity investment within ninety (90) days following
receipt of the application approved by the department, the certification of the taxpayer shall lapse and the CDE may
not issue a qualified equity investment without filing a new application with the department.
A CDE shall file this form (Form 8874(K)-A) with the department for each taxpayer as evidence of the receipt of the
cash for the taxpayer’s qualified equity investment.
If the department is satisfied that the cash amount of the qualified equity investment was received by the CDE, a
copy of Form 8874(K)-A will be returned to the taxpayer and CDE with the department’s approval of the tax credit
available to the taxpayer for each of the next seven years.
A taxpayer shall attach a copy of the approved Form 8874(K)-A to the tax return each year to claim the tax credit
against the taxes imposed by KRS 141.020, 141.040, 141.0401, 136.320, 136.330, 136.340, 136.350, 136.370, 136.390 or
304.3-270. For the tax credit against taxes imposed by KRS 141.020, 141.040 or 141.0401, the ordering of the credits
shall be as provided by KRS 141.0205. An insurance company claiming a tax credit against the insurance premium
tax is not required to pay additional retaliatory tax levied pursuant to KRS 304.3-270.
A partner, member or shareholder claiming the tax credit shall attach a copy of Schedule K-1, Form 720S; Schedule
K-1, Form 765; or Schedule K-1, Form 765-GP to the tax return each year to claim the tax credit.
If there is an event as provided by KRS 141.433(6) which would result in the recapture of any portion of the tax credit
previously approved: (i) the CDE shall notify the department upon discovery of such event; or (ii) the department
upon discovery of such event or after receiving notice from the CDE of such event shall provide written notice (via
certified mail) of the proposed recapture to the CDE as provided by KRS 141.433(6)(b).
If the CDE fails or is unable to cure the deficiency as provided by KRS 141.433(6)(b), the department shall notify the
CDE and each taxpayer of the amount of the recapture or the balance of the tax credit on Form 8874(K)-B.