Tax News

CCH (cch.taxgroup.com) reports:

  After the Kentucky Legislature adjourned from its regular session without a final agreement on an economic incentives package (TAXDAY, 2009/03/30, S.14) and finally reached consensus on a package during a special session (TAXDAY, 2009/06/25, S.7), Gov. Steve Beshear signed legislation that creates and amends numerous credits that may be claimed against the Kentucky corporation income tax, the limited liability entity tax (LLET) and the personal income tax. The legislation includes new and amended credits for investment, job training, job retention, employer-paid tuition, first-time new home purchases, small business development, the film industry, and alternative energy facilities. In addition, all military pay received by active duty members of the U.S. Armed Forces, reserve members, and National Guard members, including compensation for state active duty, may be excluded from personal income effective for taxable years beginning on or after January 1, 2010. Provisions of the legislation that provide sales and use tax incentives (TAXDAY, 2009/06/29, S.11) and a pari-mutuel tax exemption for certain horse racing events and a motor vehicle usage tax incentive (TAXDAY, 2009/06/29, S.13) are covered in other stories.