(1) The amount of premiums paid for health insurance shall be treated as an income tax credit for state income tax purposes, and as a credit against the limited liability entity tax imposed by KRS 141.0401, with the ordering of the credits as provided in KRS 141.0205, as follows: (a) Twenty percent (20%) of the first year premium; (b) Fifteen percent (15%) of the second year premium; (c) Ten percent (10%) of the third year premium; and (d) Five percent (5%) of the fourth year premium. (2) No employer or employee shall be eligible for the income tax credits enumerated in this section unless: (a) Premiums are paid into the trust prior to July 1, 1992; (b) Fifty (50) or fewer employees are employed; (c) No health insurance benefits have been provided by the employe r during the three (3) years preceding the date premiums are initially paid to the trust; (d) Employers maintain participation in the trust for all full -time and part -time employees for a period of four (4) continuous years; and (e) Employers pay at least fifty percent (50%) of the premium.
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