By Vidor A. Nosce, Esq., Checkpoint News
Kentucky has passed legislation that expands the state’s Angel Investor Program to allow pass-through entities to participate. (L. 2026, H577 (c. 114), effective 07/15/2026.)
Pass-through entity participation
Qualified investments can be made indirectly by a qualified investor through a pass-through entity formed for the sole purpose of making one or more investments in a single, qualified small business and treated as a pass-through entity for federal income tax purposes. The amount eligible for the tax credit will be limited to that individual’s pro rata share of the capital contributed to the entity that is ultimately invested in the qualified small business. A pass-through entity utilized to make a qualified investment must not make qualified investments in more than one company.
Take your tax and accounting research to the next level with Checkpoint Edge and CoCounsel. Get instant access to AI-assisted research, expert-approved answers, and cutting-edge tools like Advisory Maps and State Charts. Try it today and transform the way you work! Subscribe now and discover a smarter way to find answers.
