Form 41a720ds Schedule Ds - Distilled Spirits Tax Credit

41A720DS (10–16)

Page 2

Commonwealth of Kentucky

INSTRUCTIONS FOR SCHEDULE DS

DEPARTMENT OF REVENUE

The distilled spirits credit is a nonrefundable and nontransferable credit that may be claimed against income taxes imposed by

KRS 141.020 or KRS 141.040 and the limited liability entity tax imposed by KRS 141.0401 by taxpayers that pay Kentucky property

tax on distilled spirits pursuant to KRS 132.160. If the taxpayer is a pass-through entity, such as a partnership, S-corporation or

limited liability company classified as a pass-through entity for Kentucky income tax purposes, the taxpayer may apply the credit

against the LLET, and pass the credit through to its members, partners, or shareholders in the same proportion as the distributive

share of income or loss is passed through.

Purpose of Schedule—The schedule shall be used to report

Line 4—Enter the amount of the ad valorem tax that was

the capital improvements for which the credit is claimed, up to

assessed and paid on the dates entered on Lines 2 and 3,

respectively.

the amount of distilled spirits ad valorem tax paid during the

period the capital improvements were made. The credit must

be claimed on the return filed for the year during which the

Line 5—Enter the applicable percentage for the taxable year

credits were used, which is the year the capital improvements

as follows:

are completed.

•

For taxable years beginning on or after January 1, 2015,

and before December 31, 2015, the credit shall be equal

How to File—Schedule DS must be attached to the tax

to twenty percent (20%) of the tax assessed under KRS

return.

132.160 and paid under KRS 132.180 on a timely basis.

Maintaining Records—The taxpayer must maintain records

•

For taxable years beginning on or after January 1, 2016,

reflecting the verification of the capital improvements made

and before December 31, 2016, the credit shall be equal to

that are associated with the credit for a period of five years.

forty percent (40%) of the tax assessed under KRS 132.160

and paid under KRS 132.180 on a timely basis.

SPECIFIC INSTRUCTIONS

•

For taxable years beginning on or after January 1, 2017,

and before December 31, 2017, the credit shall be equal to

General Information—KRS 141.389(3) provides that the

sixty percent (60%) of the tax assessed under KRS 132.160

distilled spirits credit may be accumulated for multiple taxable

years, and shall be claimed on the return of the taxpayer filed

and paid under KRS 132.180 on a timely basis.

for the taxable year during which the credits were used for

•

For taxable years beginning on or after January 1, 2018,

capital improvements as provided by KRS 141.389(2). If the

and before December 31, 2018, the credit shall be equal

distilled spirits ad valorem tax is for multiple taxable years,

to eighty percent (80%) of the tax assessed under KRS

attach a schedule providing the information on Part II of this

132.160 and paid under KRS 132.180 on a timely basis.

Schedule for each taxable year.

•

For taxable years beginning on or after January 1, 2019,

Part I—Capital Improvements

the credit shall be equal to one hundred percent (100%)

of the tax assessed under KRS 132.160 and paid under

Lines 1 to 5—Enter the capital improvement amounts at the

KRS 132.180 on a timely basis.

premises of the distiller licensed pursuant to KRS Chapter

243 for each of the categories provided on Lines 1 through 5

Line 6—Enter the amount on Line 4 multiplied by the

that were completed and specifically associated with the ad

percentage on Line 5. Enter the total of line 6 in the Total

valorem tax on Part II, Line 3.

column.

Line 6—Enter the total of Lines 1 through 5.

Line 7—Enter the lesser of Part I, line 6 or Part II, line 6; this

is the allowable distilled spirits tax credit.

Part II—Computation of the Credit

Line 1—Enter the ad valorem taxable year ending. Enter the

2-digit month and 2-digit year. Begin with the earliest taxable

year ending date.

Line 2—Enter the date the ad valorem tax was assessed

pursuant to KRS 132.160.

Line 3—Enter the date the ad valorem tax was paid pursuant

to KRS 132.180.

Form 41a720ds Schedule Ds - Distilled Spirits Tax Credit - 2016 Page 2

Related Articles

Related forms

Related Categories