Form 41a720-S25 Draft - Schedule Kira-T - Tracking Schedule For A Kira Project (Page 2 of 2) in pdf

41A720-S25 (10-07)

Page 2

INSTRUCTIONS—SCHEDULE KIRA-T

PURPOSE OF SCHEDULE—This schedule is used by

percent of the approved costs as verified by the

any company which has entered into a revitalization

Kentucky Economic Development Finance Authority.

agreement for a Kentucky Industrial Revitalization

Refer to your agreement for the applicable percentage.

(KIRA) project to maintain a record of the approved

For each year thereafter, if the amount entered in

c o s t s , w a g e a s s e s s m e n t f e e s a n d i n c o m e ,

Column D for the prior year exceeds the combined total

limited liability entity tax and license tax* credits for

of income tax credit and corporation license tax credit

the duration of the revitalization agreement. This

claimed for the prior year in Column E, enter the

information is necessary for the company to determine

difference.

the limitation of the tax credit for each year of the

revitalization agreement and to allow the Kentucky

Column C—Enter the total amount of employee wage

Department of Revenue to verify that the credit has

assessment fees (both the state and local portion)

been properly computed.

withheld from the salaries of employees during the

taxable year, or the appropriations received during the

GENERAL INSTRUCTIONS

taxable year if an appropriation agreement was entered

into in lieu of utilization of the wage assessment.

A single Schedule KIRA-T, Tracking Schedule

for a KIRA Project, shall be maintained for the duration

Column D—Enter the result of subtracting the amount

of each KIRA project. Beginning with the first taxable

entered in Column C from the amount entered in

year of the KIRA revitalization agreement, complete

Column B. Also, enter on Schedule KIRA, Part III, Line

Columns A through E using a separate line for each

2, or Schedule KIRA-SP, Part I, Line 8, whichever is

year of the revitalization agreement. The company shall

applicable.

attach a copy of this schedule updated with current

year information to the Schedule KIRA or Schedule

Column E—The KIRA tax credit is applied against the

KIRA-SP, which is filed with the Kentucky tax return

corporation income tax imposed under KRS 141.040

for the year.

and/or the limited liability entity tax imposed under KRS

141.0401. The tax credit calculated for each tax can be

For Form 720, all tax credits are entered on Schedule

different, however for tracking purposes, the maximum

TCS, a tax credit summary. The total tax credits

amount used against either tax is recorded as amount

calculated may exceed the amount that can be used.

claimed. Enter the greater of Column E or Column F

Credits must be claimed in the order prescribed by KRS

from Schedule TCS for this project.

141.0205. Total credits claimed cannot reduce the LLET

below the $175 minimum. Total credits claimed cannot

reduce the income tax liability below zero.

SPECIFIC INSTRUCTIONS

Column A—Enter on each line the ending date (month

*Prior to January 1, 2006, KIRA tax credits were applied

against corporation license tax. The tax was repealed

and year) of the taxable year for which the information

requested in Columns B through E is entered.

effective for tax periods ending on or after December

31, 2005. KIRA credit used to offset license tax prior

Column B—For the taxable year that includes the

to that effective date must be reported on the

Schedule KIRA-T.

revitalization agreement date, enter 50 percent or 75

Form 41a720-S25 Draft - Schedule Kira-T - Tracking Schedule For A Kira Project Page 2

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