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

Page 2

41A720–CCI (10–12)

INSTRUCTIONS FOR SCHEDULE CCI

Commonwealth of Kentucky

DEPARTMENT OF REvENUE

The Clean Coal Incentive Tax Credit is applied against the individual income tax imposed by KRS 141.020, the corporation income

tax imposed by KRS 141.040, the limited liability entity tax (LLET) imposed by KRS 141.0401 and the public service corporation

property tax (state portion only) imposed by KRS 136.120. The amount of credit claimed against the corporation income tax and

the LLET can be different.

Purpose of Schedule—This schedule is used by taxpayers to

apply for the clean coal incentive tax credit provided by KRS

A pass-through entity shall include on each Schedule K-1

141.428 and by the Department of Revenue to determine the

the partner’s, member’s or shareholder’s pro rata share of

approved tons of coal purchased.

the approved credit. In addition, a pass-through entity shall

notify the department electronically of all partners, members

Who is Entitled to the Credit

or shareholders who may claim any amount of the approved

credit. Failure to provide information to the department in the

(a) Any electric power company subject to tax under KRS

following manner may constitute the forfeiture of available

136.120 and certified as a clean coal facility or any taxpayer

credits to all partners, members or shareholders in the pass-

that owns or operates a clean coal facility and purchases

through entity.

eligible coal that is used by the taxpayer in a certified clean

coal facility; or

Email address:

KRC.WEBResponseEconomicDevelopmentCredits@ky.gov

(b) A parent company of an entity identified in paragraph (a)

if the subsidiary is wholly owned.

The electronic mail shall contain a separate attachment in

plain format text or plain ASCII format that includes each

Amount of Credit—The credit is equal to $2 for each ton of

partner’s, member’s or shareholder’s: (a) Name; (b) Address;

qualifying coal. “Qualifying coal” means coal subject to the

coal severance tax imposed by KRS 143.020 which is purchased

Distributive share of the tax credit.

and used by the company to generate electricity.

Due Date of Schedule—The taxpayer must submit this

PART I—Qualifying Tons of Coal Purchased During the Taxable

schedule by March 15 of each year to apply for the credit on

Year and Used to Generate Electricity

coal purchases for the prior calendar year.

Columns A and B—Enter in Column A the name of each supplier

Where to Submit Schedule—This schedule should be submitted to:

from whom qualifying coal was purchased. If the supplier

listed in Column A is the person subject to the Kentucky coal

Kentucky Department of Revenue

severance tax on the qualifying coal, enter the supplier’s

Office of Property Valuation

Kentucky coal severance tax account number in Column B. If

Division of Minerals Taxation and GIS Services

the person subject to the Kentucky coal severance tax on the

Station 33

qualifying coal is different than the supplier listed in Column

501 High Street, Fourth Floor

A, enter in Column B the name and Kentucky coal severance

Frankfort, Kentucky 40601-2103

tax account number of the person subject to the Kentucky

coal severance tax on the qualifying coal purchased from

SPECIFIC INSTRUCTIONS

each supplier. In the event more than one person was subject

to the Kentucky coal severance tax on coal purchased from

General Information—The taxpayer must complete all

the same supplier, use a separate line to list the supplier and

information in the name and address portion of this schedule.

the name and Kentucky coal severance tax account number

If the entity type is not listed, check “Other” and list the entity

of each person subject to the Kentucky coal severance tax on

type.

the coal purchased from such supplier.

Maintaining Records—The taxpayer must maintain records

Column C—Enter on each line in this column the tons of

reflecting verification of the tons of coal purchased subject

qualifying coal purchased related to each entry in Columns

to Kentucky coal severance tax imposed by KRS 143.020,

A and B.

including invoices and proof of payments, for a period of five

years.

Part III—Recap Schedule

When Credit May be Claimed—The credit shall not be carried

Taxes to Which the Credit Applies—KRS 141.428 provides

forward and must be used on the tax return filed for the period

that this credit shall first be applied against both the taxes

during which the eligible coal was purchased.

imposed by KRS 141.020 or KRS 141.040 and the tax imposed

by KRS 141.0401, with the ordering of credits as provided in

Claiming Credit—Corporations and limited liability pass-

KRS 141.0205. Any remaining credit shall be applied against

through entities are entitled to take this credit against the LLET.

the taxes imposed by KRS 136.120.

The credit taken against corporation income tax is also allowed

against the LLET even though the credit is taken against the

The credit shall meet the entirety of the taxpayer’s liability

income tax. The credit claimed may be different because of

under the first tax listed in consecutive order before applying

limitations.

any remaining credit to the next tax listed in consecutive order.

The taxpayer’s total liability under each preceding tax must

The credit amount cannot reduce the LLET below the $175

be fully met before the remaining credit can be applied to the

minimum.

subsequent tax listed in consecutive order.

Schedule Cci (Form 41a720-Cci) - Application And Credit Certificate Of Clean Coal Incentive Tax Credit Page 2

Related Articles

Related forms

Related Categories