Kentucky Kentucky New Markets Development Program Tax Credit Request for Refund of Performance Fee

Kentucky New Markets Development Program Tax Credit Request for Refund of Performance Fee
Form 8874(K)-C
8874(K)-C

41A720-S83 (5-15)
Commonwealth of Kentucky
DEPARTMENT OF REVENUE

KENTUCKY NEW MARKETS DEVELOPMENT PROGRAM TAX CREDIT
REQUEST FOR REFUND OF PERFORMANCE FEE

➤ 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

Number and Street (taxpayer’s address)		
	
					
					

D	 Certified purchase price of

–

the qualified equity investment

City
State
Zip Code
									
									
$

E	

Date of this request for refund of performance	
fee
			
	 		
	 		

 /     /

	

Mo.	

Day

F	

What type of entity is the CDE? 	

¨ Corporation	

¨  Limited Liability Pass-through Entity	

¨  General Partnership	

¨ Other____________________________________________

Yr.

	 1.	 Enter the amount of the qualified equity investment certified by the department which the
		 CDE received cash in exchange for qualified equity investment within 90 days after the
		 qualified equity investment was certified........................................................................................................ 	
	 2.	 Enter the amount of the qualified equity investment in qualified active low-income community
		 businesses located in the Commonwealth 12 months after the CDE received cash in exchange
		 for the qualified equity investment.................................................................................................................. 	

%
	 3.	 Divide line 2 by line 1 and enter the resultant percentage here.................................................................... 	
		
100%
	4.	
Percentage required to be invested outlined under KRS 141.433(6)......................................................... 	
		
	5.	
If line 3 is smaller than line 4, subtract line 3 from line 4 and enter the resultant percentage here;
%
		 otherwise, enter 0%.................................................................................................................................... 		
	
			
		
	6.	
Enter the refundable performance fee paid by the CDE.............................................................................
		
	7.	
Multiply the percentage on line 5 by the amount on line 6, this is the amount of the forfeited
		performance fee.......................................................................................................................................... 		
		
	8.	
Subtract the amount on line 7 from the amount on line 6 and enter here; this is the amount of
	
performance fee to be refunded.................................................................................................................
Under the penalty of perjury, I declare that I have examined the information on this form, including all accompanying
documents and statements, and to the best of my knowledge and belief, it is true, correct, and complete.
By:__________________________________________________________ 	
	
Signature of executive officer of CDE	

__________________________________________________
Date

Print name:___________________________________________________
Title:_________________________________________________________

Department of Revenue Use Only
A refund of the performance fee is approved in the amount of................................................	 ______________________

		

By: 
___________________________________________ 	Date: 
______________________

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

41A720-S83 (8874(K)-C) (5-15)

Page 2

Commonwealth of Kentucky
DEPARTMENT OF REVENUE

INSTRUCTIONS—KENTUCKY NEW MARKETS DEVELOPMENT PROGRAM TAX CREDIT
REQUEST FOR REFUND OF PERFORMANCE FEE
KRS 141.433(8)(c)3 provides that a qualified community development entity (CDE) may request a refund of the
performance fee no sooner than thirty (30) days after having met all the requirements of KRS 141.433(8). The refund
request shall be made in writing to the department (the submission of this form shall comply with this requirement).
The department shall review the refund request within thirty (30) days, and shall either comply with the request
and issue the refund of the performance fee, without interest, if the CDE has met all of the requirement of KRS
141.433(8), or give written notice to the CDE that it is noncompliant and subject to possible forfeiture of the fee.
The entire amount of the fee shall be forfeited if the CDE, or any subsidiary of the CDE, fail to issue the total amount
of qualified equity investment certified by the department and receive cash in exchange therefore within ninety
(90) days after receipt of the notice of certification.
A portion of the performance fee shall be forfeited if the CDE, or any subsidiary of the CDE, that issues a qualified
equity investment certified by the department fails to meet the percentage of investment required by KRS 141.433(6)
by the first allowance date of the qualified equity investment. The forfeiture shall be proportionate to the amount
of the qualified equity investment that is not invested as required by KRS 141.433(6). Forfeiture of the fee shall be
subject to the ninety (90) day cure period allowed under KRS 141.433(6)(b).
SPECIFIC INSTRUCTIONS
Line 3—Convert Line 3 to a percentage carried out to two decimal places.
In the case of a qualified equity investment issued on or after January 1, 2014, at least one hundred percent
(100%) of the purchase price of the qualified equity investment in qualified low-income community investments
in qualified active low-income community businesses located in the Commonwealth within twelve (12) months
of the issuance of the qualified equity investment and maintain this level of investment in qualified low-income
community investments in qualified active low-income community businesses located in the Commonwealth until
the last credit allowance date for the qualified equity investment. In this case, the department’s recapture shall
be proportionate to the amount of the redemption or repayment with respect to the qualified equity investment.
REQUIRED ATTACHMENTS
Proof of certification and proof that the requirements under KRS 141.433(8)(d) have been met are required to be
included with the submission of this form.