Form 41a720-S17 Draft - Schedule Kreda-T - Tracking Schedule For A Kreda Project (Page 2 of 2) in pdf

41A720-S17 (10-07)

Page 2

INSTRUCTIONS—SCHEDULE KREDA-T

PURPOSE OF SCHEDULE—This schedule is used by

agreement was executed. For projects which received

any company which has entered into a financing

preliminary approval from KEDFA after July 15, 1996,

agreement or tax incentive agreement for a Kentucky

enter the date established by the approved company

Rural Economic Development Act (KREDA) project to

as the activation date for implementation of the

maintain a record of the debt service payments or

inducements authorized by the financing agreement.

approved costs, whichever is applicable, wage

assessment fees and tax credits (income tax and

SPECIFIC INSTRUCTIONS

limited liability entity tax) for the duration of the

agreement. This information is necessary for the

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

company to determine the limitation of the tax credit

day and year) of the tax year for which the information

for each year of the agreement and to allow the

requested in Columns B through F is entered.

Kentucky Department of Revenue to verify that the

credit has been properly computed.

Column B—This column will always be blank for the

first taxable year of the agreement. For each year

GENERAL INSTRUCTIONS

thereafter, if the amount entered in Column E for the

prior year exceeds the amount entered in Column F

The 2002 General Assembly amended KRS 154.22-010

for the prior year, enter the difference. If the amount

to 154.22-100, effective on July 15, 2002. Projects that

entered in Column F for the prior year equals the

received preliminary approval from the Kentucky

amount entered in Column E for the prior year, enter

Economic Development Finance Authority (KEDFA)

zero (-0-).

prior to July 15, 2002, and have entered into a financing

agreement no later than June 30, 2003, shall be subject

Column C—Enter the total amount of debt service

to KRS 154.22-010 to 154.22-100 as in effect prior to

payment or approved costs, whichever is applicable

July 15, 2002.

in accordance with the agreement, for the taxable year.

Debt service payment includes both principal and

A separate Schedule KREDA-T, Tracking Schedule

interest paid in accordance with the financing

for a KREDA Project, shall be maintained for the

agreement.

duration of each KREDA project. Beginning with the

first tax year of the KREDA financing agreement or tax

Column D—Enter the total amount of employee wage

incentive agreement, complete Columns A through F

assessment fees (both the state and local portion)

using a separate line for each year of the agreement.

withheld from the salaries of employees during the

The company shall attach a copy of this schedule

taxable year.

updated with current year information to the Schedule

KREDA or Schedule KREDA-SP, which is filed with the

Column E—Enter the result of adding the amounts

Kentucky tax return for the year.

entered in Columns B and C and subtracting the

amount entered in Column D. Also, enter on Schedule

For Form 720, all tax credits are entered on Schedule

KREDA, Part III, Line 2, or Schedule KREDA-SP, Part I,

TCS, a tax credit summary. The total tax credits

Line 8, whichever is applicable.

calculated may exceed the amount that can be used.

Credits must be claimed in the order prescribed by KRS

Column F—The KREDA tax credit is applied against

141.0205. Total credits claimed cannot reduce the LLET

the corporation income tax imposed under KRS

below the $175 minimum. Total credits claimed cannot

141.040 and/or the limited liability entity tax imposed

reduce the income tax liability below zero.

under KRS 141.0401. The tax credit calculated for each

tax can be different, however for tracking purposes,

Date Financing/Tax Incentive Agreement was

Executed or Activation Date—For projects which

the maximum amount used against either tax is

received preliminary approval from the Kentucky

recorded as the amount claimed. Enter the greater of

Economic Development Finance Authority (KEDFA)

Column E or Column F from Schedule TCS for this

prior to July 15, 1996, enter the date the financing

project.

Form 41a720-S17 Draft - Schedule Kreda-T - Tracking Schedule For A Kreda Project Page 2

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