Bill > HB372

This bill modifies Kentucky's New Markets Development Program tax credit by making two key changes. First, it allows qualified community development entities to treat periodic loan repayments as "continuously held" if the repaid amounts are reinvested in another qualified low-income community investment by the end of the following calendar year. This provides more flexibility for entities managing investments in low-income communities. Second, the bill increases the total annual tax credit cap from $10 million to $20 million per fiscal year, effectively doubling the amount of tax credits available to incentivize investments in qualified low-income community businesses. The tax credit remains structured so that investors can claim 39% of their qualified equity investment's purchase price, with the ability to carry forward unused credits to subsequent tax years. These changes aim to encourage more private investment in economically disadvantaged areas of Kentucky by making the tax credit program more attractive and providing additional financial flexibility for community development entities.