Looking for a Kentucky Tax Forms And Templates? Download it for free!

41A720ETH (10-08)

Page 2

Commonwealth of Kentucky

INSTRUCTIONS FOR SCHEDULE ETH

DEPARTMENT OF REVENUE

The ethanol tax credit is applied against individual income tax imposed under KRS 141.020, the corporation income tax

imposed under KRS 141.040 and/or the limited liability entity tax (LLET) imposed under KRS 141.0401. The amount of tax

credit claimed against the corporation income tax and LLET can be different.

Purpose of Schedule—The application and credit

Part II and Part III

certiﬁ cation schedule is to report the number of gallons of

These parts are completed by the Department of Revenue

ethanol produced in this state meeting the current ASTM

to determine the ethanol credit for each taxpayer. Part III is

standards. The Department of Revenue will certify the

used if the total amount of approved credit for all ethanol

amount of ethanol credit for each taxpayer. It is effective

producers exceeds the annual ethanol tax credit cap.

for ethanol produced on or after January 1, 2008. The

taxpayer is not entitled to the credit for ethanol produced

Part II Instructions

in another state.

Line 1—This is the amount of ethanol gallons approved

The credit rate is up to $1 per gallon with a total cap for all

by the Department of Revenue for credit. If the approved

taxpayers not to exceed $5,000,000 annually, except in the

credit exceeds the ethanol tax credit cap, then the

case of the unused cap of the cellulosic ethanol tax credit.

credit is determined by the department in Part III. It is a

See Part III Instructions for further explanation. There is

nonrefundable credit.

no carryforward for any unused credit.

If the ethanol producer is a pass-through entity, report

To ensure proper processing, fax or e-mail Schedule

the pro rata share of the approved credit on Schedule(s)

ETH to the Department of Revenue no later than January

K-1. In the case of an entity that has a ﬁ scal year end, the

15 following the close of the preceding calendar year.

approved credit shall be claimed on the return ﬁ led for

Schedules postmarked or sent after January 15 are void.

the ﬁ rst ﬁ scal year ending after the close of the preceding

Credit certiﬁ cation cannot be guaranteed for schedules

calendar year.

sent through regular mail.

Part III Instructions

Fax number: (502) 564-0058

The Department of Revenue determines the total approved

credit. If it exceeds the ethanol tax credit cap of $5,000,000,

E-mail address:

the department will compute each taxpayer’s approved

KRC.WEBResponseEconomicDevelopmentCredits@

credit based upon a fraction the numerator (Line 1(a))

ky.gov

being the credit approved for the taxpayer and the

denominator (Line 1(b)) being the total credit approved for

all taxpayers. The ethanol tax credit cap is multiplied by

The Department of Revenue will confirm the receipt

this fraction to determine each producer’s and/or blender’s

of the application. If you do not receive conﬁ rmation

approved credit.

within two weeks of submitting the application, contact

the Corporation Income and License Tax Branch at (502)

The annual ethanol tax credit cap of $5,000,000 will be

564-8139.

increased by the unused cap of the cellulosic ethanol tax

credit if the total approved applications for the ethanol

The Department of Revenue will issue the credit certiﬁ cate,

tax credit exceeds its $5,000,000 cap. The amount of

listing the amount of credit available, by April 15 following

credit cap transferred to the ethanol tax credit shall not

the close of the preceding calendar year. Attach the credit

exceed the amount necessary for all applicants to receive

certiﬁ cate to the tax return claiming the credit.

the one dollar ($1) per gallon credit provided for in KRS

141.4242.

General Instructions—For the calendar year, enter the

applicable year.

Part IV Instructions

Check the appropriate entity type. If taxed as entity type

other than corporation, limited liability pass-through

Line 1—Enter the amount of credit claimed for the taxable

entity, general partnership or individual, check the “Other”

year against the LLET on Schedule TCS, Part III, Column

box and list the entity type.

E. The credit amount cannot reduce the LLET below the

$175 minimum.

Identification Number—For an individual, enter the

Social Security number; for a general partnership, enter

Line 2—Enter the amount of credit claimed for the taxable

the FEIN.

year against the corporation income tax on Schedule TCS,

Part III, Column F .

Part I Instructions

Line 1—Enter the number of gallons of ethanol produced

Line 3—Enter the amount of credit claimed for the taxable

in this state for the calendar year.

year on Form 740, Form 740NP or Form 741.

Form 41a720eth - Schedule Eth Draft - Application And Credit Certificate Of Income Tax/llet Credit Ethanol Page 2

Related Articles

Related forms

Related Categories