Schedule Fd (Form 41a720fd) - Food Donation Tax Credit (Page 2 of 2) in pdf

Page 2

41A720FD (06-13)

Commonwealth of Kentucky

DEPARTMENT OF REVENUE

INSTRUCTIONS—SCHEDULE FD

determine the value of the donated edible agriculture

PURPOSE OF SCHEDULE—This schedule is used

products as follows: (i) if there was a previous sale of

by a taxpayer (donor) who provides free of fee or

the edible agriculture products to a buyer, the donor

charge edible agriculture products to a nonprofit food

shall retain a copy of an invoice or other statement

program operating in Kentucky as provided by KRS

identifying the price received by the donor for the

141.392.

edible agriculture products of comparable grade and

quality; or (ii) If there is no previous sale to a buyer,

For taxable years beginning on or after January 1,

the donor shall on the date of the donation, determine

2014, but before January 1, 2018, any donor shall

the value of the donated edible agriculture products

be allowed a nonrefundable credit (food donation

based on the fair market value as determined by

tax credit) against the tax imposed by KRS 141.020

average weekly regional produce auction prices or

or 141.040 and 141.0401, with the ordering of credits

United States Department of Agriculture prices for

as provided by KRS 141.0205, in the amount equal to

meat, fish and dairy products.

ten percent (10%) of the value of the donated edible

agricultural products. A qualified taxpayer claiming

Line 7—Add Lines 1 through 6.

the food donation tax credit shall attach this schedule

to the applicable tax return.

Line 9—Multiply Line 7 by Line 8, and enter the amount

on this line and the applicable tax form or schedule.

A qualified taxpayer that is a pass-through entity

In order to claim the credit, this schedule must be

not subject to the tax imposed by KRS 141.040 shall

attached to the applicable tax return.

apply the food donation tax credit against the limited

liability entity tax imposed by KRS 141.0401, and shall

Part II – Taxpayer (Donor) Statement

distribute the amount of the approved tax credit to

each partner, member or shareholder based on the

The taxpayer (donor) or the representative of the

partner’s, member’s or shareholder’s distributive

taxpayer shall certify that the information and fair

share of income as determined for the taxable year

market values included in Part I are true, correct and

during which the tax credit is approved, with the

complete. Enter the date signed, and type the name

ordering of credits as provided by KRS 141.0205.

and title of person signing this document in the spaces

provided. Failure to sign the schedule or to provide all

A tax credit not used by a qualified taxpayer in the

information may result in the disallowance of the tax

current taxable year may be carried forward for up to

credit.

four (4) succeeding years.

Part III – Donee Acknowledgement

GENERAL INSTRUCTIONS

The representative of the charitable organization

Part I – Information on Donated Food

(donee) shall certify that the charitable organization

is exempt from federal income tax under Section

Check the box that best describes the donated food.

501(c)(3) of the Internal Revenue Code, certify that

If the box for “Other edible product” is checked,

it operates a surplus food collection and distribution

describe the product in the space provided.

program as defined in KRS 141.392(1)(c), and certify

that the information included in the schedule is true,

Lines 1 through 6—Enter the following: Column A, the

correct and complete. Enter the name, Employer

description of the item of food being donated; Column

Identification Number, and address of the charitable

B, the date donated; Column C, the quantity of the

organization in the spaces provided. Also, enter the

food item; Column D, the fair market price of each unit

title of person signing this document and the date in

of measure; and Colum E, the total fair market value.

the spaces provided. Failure to sign the schedule or to

provide all information may result in the disallowance

KRS 141.392(3)(b) provides that a donor shall

of the tax credit.

Schedule Fd (Form 41a720fd) - Food Donation Tax Credit Page 2

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