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41A720-S27 (10-13)

Page 2

INSTRUCTIONS—SCHEDULE KJDA

Commonwealth of Kentucky

DEPARTMENT OF REVENUE

The KJDA tax credit is applied against the corporation income tax imposed by KRS 141.040 and/or the limited liability

entity tax (LLET) imposed by KRS 141.0401. The amount of tax credit against each tax can be different; however, for tracking

purposes, the maximum amount of credit used against either tax is the amount that is used for the tax year.

PURPOSE OF SCHEDULE—This schedule is used by

attach a copy of the certification(s) from the Bluegrass

a corporation which has entered into a tax incentive

State Skills Corporation. A corporation approved for the

agreement for a Kentucky Jobs Development Act (KJDA)

Kentucky Small Business Investment Credit Program

project that received preliminary or final approval by KRS

(KSBIC) must attach a copy of the certification from the

Chapter 154.24 on or before June 26, 2009, to determine

Kentucky Economic Development Finance Authority.

the credit allowed against the Kentucky corporation

Alternative Methods—In accordance with KRS 141.407(8),

income tax and LLET attributable to the project in

if the approved company can show that the nature of the

accordance with KRS 141.407.

operations and activities of the approved company are

such that it is not practical to use separate accounting

GENERAL INSTRUCTIONS

to determine net income, Kentucky gross receipts or

Part I—Computation of LLET Excluding KJDA Project

Kentucky gross profits from the facility at which the

project is located, the approved company shall determine

Line 2—Using Schedule LLET, create a new Schedule

net income, Kentucky gross receipts or Kentucky gross

LLET to compute the LLET of the KJDA project using

profits attributable to the project using an alternative

only the Kentucky gross receipts and Kentucky gross

method approved by the Department of Revenue. Thus,

profits of the project. Enter “KJDA” at the top center of

if any method other than separate accounting is used,

the Schedule LLET and attach it to the tax return.

a copy of the letter from the Department of Revenue

approving the alternative method must be attached to

If the corporation has operations other than the

this schedule.

KJDA project, it must attach schedules reflecting the

computation of Kentucky gross profits and Kentucky

In accordance with KRS 141.407(6)(a), if the project is a

gross receipts from the KJDA project in accordance with

totally separate facility, net income attributable to the

KRS 141.407(6)(b)** or KRS 141.407(7)(b).****

project shall be determined by the separate accounting

method.

Part II—Computation of Taxable Net Income Excluding

In accordance with KRS 141.407(6)(b), if the project is

Net Income from KJDA Project and KJDA Tax Credit

a totally separate facility, Kentucky gross receipts or

Section B

Kentucky gross profits attributable to the project shall

be determined under the separate accounting method

Line 2—Enter net income for KJDA project. If the

reflecting only the Kentucky gross receipts or Kentucky

corporation’s only operation in Kentucky is the KJDA

gross profits directly attributable to the facility.

project, the amount entered on Line 1 must be entered

***

In accordance with KRS 141.407(7)(a), if the KJDA

on Line 2. If the corporation has operations other than

project is an expansion to a previously existing facility,

the KJDA project, it must attach schedules reflecting the

net income attributable to the entire facility shall be

computation of the net income from the KJDA project in

determined under the separate accounting method and

accordance with KRS 141.407(6)(a)* or KRS 141.407(7)

the net income attributable to the KJDA project shall be

(a).***

determined by apportioning the separate accounting

net income of the entire facility to the KJDA project

See form for computation.

income using a formula approved by the Department of

Part III—Limitation

Revenue. A copy of the letter from the Department of

Revenue approving the percentage must be attached

Calculate KJDA tax credit based on the corporation’s tax

to this schedule.

liability, tax liability attributable to KJDA project, and

****

In accordance with KRS 141.407(7)(b), if the KJDA project

credit limitation from Schedule KJDA-T. Enter credit on

is an expansion to a previously existing facility, Kentucky

Schedule TCS, Part I, Column E and Column F.

gross receipts or Kentucky gross profits attributable to

A corporation with more than one economic development

the entire facility shall be determined under the separate

projec t must separately compute the tax credit

accounting method and the Kentucky gross receipts or

derived from each project. Complete an applicable tax

Kentucky gross profits attributable to the KJDA project

computation schedule (Schedule KREDA, Schedule

shall be determined by apportioning the separate

KIDA, Schedule KEOZ, Schedule KJRA, Schedule

accounting Kentucky gross receipts or Kentucky gross

KIRA, Schedule KJDA, Schedule KBI, Schedule KRA or

profits of the entire facility to the KJDA project Kentucky

Schedule IEIA) for each project. A corporation approved

gross receipts or Kentucky gross profits. A copy of the

for the Skills Training Investment Credit Act (STICA) or

letter from the Department of Revenue approving

Metropolitan College Consortium Tax Credit (MCC) must

the percentage must be attached to this schedule.

Schedule Kjda (Form 41a720-S27) - Tax Credit Computation Schedule (For A Kjda Project Of A Corporation) Page 2

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