Schedule Tcs (Form 41a720tcs) - Tax Credit Summary Schedule (Page 2 of 2) in pdf

41A720TCS (10-13)

Page 2

Commonwealth of Kentucky

DEPARTMENT OF REVENUE

INSTRUCTIONS—SCHEDULE TCS

Schedule TCS is used by corporations and limited liability pass-through entities to apply

tax credits against the corporation income tax imposed by KRS 141.040 and/or the limited

liability entity tax imposed by KRS 141.0401. The amount of tax credit against each tax can

be different.

A corporation must complete the applicable tax credit

PURPOSE OF SCHEDULE

schedule (Schedule KREDA, Schedule KIDA, Schedule

This schedule is used by corporations to summarize all

KEOZ, Schedule KJRA, Schedule KIRA, Schedule KJDA,

tax credits being claimed against income tax as provided

Schedule KBI, Schedule KRA and Schedule IEIA) for

by KRS 141.040 and used by corporations and limited

each project.

liability pass-through entities to summarize all tax credits

being claimed against the limited liability entity tax

A corporation or limited liability pass-through entity

(LLET) as provided by KRS 141.0401.

claiming tax credits under the Metropolitan College

Consortium Tax Credit (MCC) and Skills Training

Limited liability pass-through entities shall not enter

Investment Credit Act (STICA) must attach a copy of

income or LLET tax credits on Schedule TCS from Schedule

the certification(s) from the Bluegrass State Skills

KREDA-SP, Schedule KIDA-SP, Schedule KEOZ-SP,

Corporation. A corporation or limited liability pass-

Schedule KJRA-SP, Schedule KIRA-SP, Schedule KJDA-

through entity claiming a tax credit under the Kentucky

SP, Schedule KBI-SP, Schedule KRA-SP, Schedule IEIA-SP

Small Business Investment Credit Program (KSBIC)

or Schedule FON. See instructions for those schedules.

must attach a copy of the certification from the Kentucky

Economic Development Finance Authority.

GENERAL INSTRUCTIONS

Complete a separate line for each project. Enter the

If a taxpayer is entitled to more than one of the tax credits

appropriate information in Columns A, B and C,

allowed against the taxes imposed by KRS 141.040 and

and enter in Column D the credit limitation from the

KRS 141.0401, the priority of application and use of

applicable tax credit computation schedule for each

credits shall be determined in the order that the credits

project. Enter in Column E the amount of credit claimed

are listed on Schedule TCS (KRS 141.0205). Total credits

for each project against the LLET, and in Column F the

taken against corporation income tax on Form 720 may

amount of credit claimed for each project against the

not reduce the tax below zero. Total credits taken against

corporation income tax.

LLET on Form 720, 720S, 725 or 765 may not reduce the

tax below $175.

There is no requirement to utilize credits from the

economic development projects in any particular

Part I—Economic Development Tax Credit Summary

order.

Corporation—This part is completed by a corporation

having approved projects under the Kentucky Rural

Economic Development Act (KREDA), Metropolitan

Part II—Other Tax Credits

College Consortium Tax Credit (MCC), Kentucky

Small Business Investment Credit Program (KSBIC),

For all other tax credits, enter the amount claimed on the

Kentucky Industrial Development Act (KIDA), Kentucky

applicable line. Attach tax credit schedules or approved

Economic Opportunity Zone Act (KEOZ), Kentucky

applications to tax returns.

Jobs Retention Agreement (KJRA), Kentucky Industrial

Revitalization Act (KIRA), Kentucky Jobs Development

Act (KJDA), Kentucky Business Investment Program

Part III—Total Tax Credits

(KBI), Kentucky Reinvestment Act (KRA), Skills Training

Investment Credit Act (STICA) and Incentives for Energy

The totals from Part I and Part II, Column E cannot reduce

Independence Act (IEIA).

the LLET below the $175 minimum. The totals from Part

I and Part II, Column F cannot reduce the corporation

Limited Liability Pass-Through Entity—This part is also

income tax liability below zero. If necessary, reduce

completed by a limited liability pass-through entity

the total amount of the credits beginning with the last

having approved projects under the Metropolitan

credit listed. Enter the LLET credits (Column E) claimed

College Consortium Tax Credit (MCC), Kentucky Small

on Form 720, Part I, Line 5; and Form 720S, 725 or 765,

Business Investment Credit Program (KSBIC) and Skills

Part II, Line 5. Enter the corporation credits (Column F)

Training Investment Credit Act (STICA).

claimed on Form 720, Part II, Line 7.

Schedule Tcs (Form 41a720tcs) - Tax Credit Summary Schedule Page 2

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