Tax News

CCH (cch.taxgroup.com) reports:

  An amended version of Gov. Steve Beshear's special session economic development package containing income tax credits, sales and use tax incentives, and a pari-mutuel tax exemption for certain horse racing events passed by a wide margin in the Kentucky Senate. The original provisions proposed by the governor (TAXDAY, 2009/06/12, S.17), along with amendments made by the House of Representatives (TAXDAY, 2009/06/19, S.5), were retained in the Senate version, but the following provisions were added or changed:

  -- companies eligible to claim the new economic development credit against the corporation income tax, limited liability entity tax (LLET), and personal income tax, which would replace the Kentucky Rural Economic Development Act (KREDA), the Kentucky Economic Opportunity Zone Act (KEOZ), the Kentucky Jobs Development Act (KJDA), and the Kentucky Industrial Development Act (KIDA) credit programs, would be required to pay at least 90% of all new employees at the target minimum wage levels and advance disbursement of the credits would be subject to General Assembly approval;

  -- companies eligible to claim the alternative and renewable energy facilities credit against corporation and personal income tax, limited liability entity tax (LLET), sales and use tax, and severance tax liability would be allowed to use tar sands as an energy feedstock;

  -- personal income taxpayers would be allowed to claim a one-time, nonrefundable credit for the purchase of a new home;

  -- a 10% surcharge would be imposed on purchases of Kentucky lottery tickets to be remitted in the same manner as sales and use taxes; and

  -- an excise tax would be imposed on horse racing tracks equal to 1.5% of the taxable handle attributable to each live race conducted at the track.

  Subscribers can view the bill as passed by the Senate.

 
H.B. 3, as passed by the Kentucky Senate on June 19, 2009