Kentucky Clarifies that State HTC can only be Transferred to LLCs that Pay Bank Franchise Tax

Monday, August 19, 2019 - 10:45am

The Kentucky Department of Revenue issued a general information letter clarifying that a nonprofit entity that received a state historic tax credit (HTC) could not transfer the credit to a new, single-member limited liability company (LLC) unless that LLC was subject to the financial institution franchise tax. Kentucky HTC regulations require that the HTC only be transferred to entities that pay the bank franchise tax.