Buying Kentucky tax credits: which Kentucky credits can be transferred
By the Tax Field Guide editorial team. Published 2026-11-05. Facts checked 2026-11-05. Related strategies: Purchased Energy Credits, Research and Development Credits.
Education only; not tax, legal or investment advice. Tax rules change, and how they apply depends on your facts. No outcome is guaranteed.
People with Kentucky tax liability sometimes look for state credits they can buy at a discount. In Kentucky, two credits we track can be transferred under the statutes, and several popular ones cannot. This guide is based on the Kentucky Revised Statutes and state agency pages; see the Kentucky state page for the full list.
Transferable Kentucky credits
| Credit | Who can buy | Key limits | Source |
|---|---|---|---|
| Historic rehabilitation credit (applications on or after April 30, 2026) | Anyone subject to Kentucky income tax and LLET, or the listed bank franchise and insurance premium taxes | Nonrefundable once transferred; 7-year carryforward; seller notifies the Department of Revenue within 30 days | KRS 171.3981 |
| Angel investor credit | Individual taxpayers only | Nonrefundable; at most 50% of the credit usable in a year; 15-year carryforward; recapture follows the credit | KRS 141.3962 |
The historic credit is the main Kentucky credit with a broad buyer pool. Before April 30, 2026, it could be transferred only to financial institutions.3 Our Kentucky historic tax credit guide explains rates, the $100 million cap and the use-or-transfer election.
The angel investor credit is awarded to qualified investors who put at least $10,000 cash into a qualified Kentucky small business; the investor can transfer it to any individual taxpayer after giving written notice to the Department of Revenue, and a transferred credit keeps the original time limits and requirements.24
Kentucky credits that cannot be bought
- Kentucky Entertainment Incentive (film): refundable and nontransferable, 30% or 35% of eligible costs.5
- Endow Kentucky credit: 20% of a community foundation endowment gift, up to $10,000; the statute says it may not be sold or transferred.6
- Kentucky Small Business Tax Credit: a nonrefundable credit of up to $25,000 a year that the business itself claims; no transfer provision is stated.7
Before buying any state credit
Ask who holds the credit, whether the state has issued the final certificate, how recapture risk is handled, and how the transfer will be reported. Our questions to ask a tax credit broker and how state tax credit transfers work cover the general process. Kentucky firms whose own sites describe historic credit and incentive work are in the advisor directory.
Common questions
Can I buy Kentucky historic tax credits?
Yes, for credits from applications received on or after April 30, 2026, if you are subject to Kentucky income, limited liability entity, bank franchise or insurance premium tax and the owner elects to transfer.
Can Kentucky film tax credits be sold?
No. The Kentucky Entertainment Incentive is refundable and nontransferable.
Can a business buy the Kentucky angel investor credit?
No. KRS 141.396 allows transfer only to individual taxpayers.
Education only; not tax, legal or investment advice. Talk to a qualified professional before acting.
Sources
- KRS 171.398, https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=56938
- KRS 141.396, https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=51575
- Kentucky Department of Revenue, Certified Rehabilitation Tax Credit, https://revenue.ky.gov/Business/Pages/Certified-Rehab-Tax-Credit.aspx
- Kentucky Cabinet for Economic Development, Angel Investment Tax Credit, https://ced.ky.gov/KAITC
- KRS 154.61-020, https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=58153
- KRS 141.438, https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=56975
- KRS 141.384, https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=43462