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41A720-S86 (2-11)

Commonwealth of Kentucky

DEPARTMENT OF REVENUE

INSTRUCTIONS—NOTICE OF ENDOW KENTUCKY TAX CREDIT AND CERTIFICATION

As provided by KRS 141.438(8)(b), a taxpayer within thirty (30) days of receiving the Department of Revenue

The process for finalizing the endowment gift after preliminary authorization is received is set forth in 103 KAR 15:195E

(department) notice of preliminary authorization of the Endow Kentucky tax credit shall make the endowment gift

Section 4, or 103 KAR 15:195 Section 4. All questions shall be directed to:

to the permanent endowment held by the approved foundation (qualified community foundation, county–specific

KRC.WEBResponseEconomicDevelopmentCredits@ky.gov.

component fund, or affiliate community foundation). Within ten (10) days of making the endowment gift, the

taxpayer shall file Schedule ENDOW, Notice of Endow Kentucky Tax Credit and Certification, with the department

A taxpayer shall attach a copy of the approved Schedule ENDOW to the tax return each year to claim the tax credit

as proof of the endowment gift.

against the taxes imposed by KRS 141.020 or 141.040 and 141.0401. The ordering of the credits shall be as provided

by KRS 141.0205.

Schedule ENDOW shall be delivered to the department via fax, e–mail, or hand–delivery as provided on page 1 of

A partner, member, or shareholder of a pass-through entity shall attach a copy of Schedule K-1, Form 720S; Schedule

this form. The department shall not accept a Schedule ENDOW by any other delivery method. An e–mail of Schedule

K-1, Form 765; or Schedule K-1, Form 765-GP to the partner's, member's, or shareholder's tax return each year to

ENDOW shall be a scanned copy containing the signature of the foundation officer or designee. The date and time

claim the tax credit.

that a Schedule ENDOW is received by the department shall be used to determine whether a taxpayer has made

timely notification as required by KRS 141.438(7) and (8).

A beneficiary of an estate or trust shall attach a copy of the Schedule K-1, Form 741, to the beneficiary's tax return

each year to claim the tax credit.

If the taxpayer fails to make an endowment gift to the approved foundation within thirty (30) days of receiving

the department’s preliminary authorization of the Endow Kentucky tax credits, or does not provide proof of

the endowment gift by filing Schedule ENDOW with the department within ten (10) days of making the gift, the

department shall void the preliminary authorization and shall restore the allocated amount to the tax credit cap.

If the department is satisfied that the endowment gift was made to the approved foundation, the department shall

return a copy of Schedule ENDOW to the taxpayer containing the department’s written approval of the Endow

Kentucky tax credit. Schedule ENDOW will not be deemed received unless all items are completed, including the

certification by the foundation’s officer (or designee).

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Form 41a720-S86 - Instruction - Notice Of Endow Kentucky Tax Credit And Certification