(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 employer 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.