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

41A720-S20 (10-13)

Page 2

INSTRUCTIONS—SCHEDULE KIDA

Commonwealth of Kentucky

DEPARTMENT OF REVENUE

The KIDA 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

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

a corporation which has entered into a tax incentive

Kentucky Economic Development Finance Authority.

agreement for a Kentucky Industrial Development Act

Alternative Methods—In accordance with KRS 141.400(8),

(KIDA) project that received preliminary or final approval

if the approved company can show that the nature of the

by KRS Chapter 154.28 on or before June 26, 2009,

operations and activities of the approved company are

to determine the credit allowed against the Kentucky

such that it is not practical to use separate accounting

corporation income tax and LLET attributable to the

to determine net income, Kentucky gross receipts or

project in accordance with KRS 141.400.

Kentucky gross profits from the facility at which the

GENERAL INSTRUCTIONS

project is located, the approved company shall determine

net income, Kentucky gross receipts or Kentucky gross

Part I—Computation of LLET Excluding KIDA Project

profits attributable to the project using an alternative

Line 2—Using Schedule LLET, create a new Schedule

method approved by the Department of Revenue. Thus,

if any method other than separate accounting is used,

LLET to compute the LLET of the KIDA project using

a copy of the letter from the Department of Revenue

only the Kentucky gross receipts and Kentucky gross

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

approving the alternative method must be attached to

this schedule.

the Schedule LLET and attach it to the tax return.

If the corporation has operations other than the

* In accordance with KRS 141.400(6)(a), if the project

KIDA project, it must attach schedules reflecting the

is a totally separate facility, net income attributable

computation of Kentucky gross profits and Kentucky

to the project shall be determined by the separate

gross receipts from the KIDA project in accordance with

accounting method.

KRS 141.400(6)(b)** or KRS 141.400(7)(b).****

** In accordance with KRS 141.400(6)(b), if the project

Part II—Computation of Taxable Net Income Excluding

is a totally separate facility, Kentucky gross receipts

Net Income from KIDA Project and KIDA Tax Credit

or Kentucky gross profits attributable to the project

shall be determined under the separate accounting

Section B

method reflecting only the Kentucky gross receipts

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

or Kentucky gross profits directly attributable to the

corporation’s only operation in Kentucky is the KIDA

facility.

project, the amount entered on Line 1 must be entered

*** In accordance with KRS 141.400(7)(a), if the KIDA

on Line 2. If the corporation has operations other than

project is an expansion to a previously existing

the KIDA project, it must attach schedules reflecting the

facility, net income attributable to the entire facility

computation of the net income from the KIDA project in

shall be determined under the separate accounting

accordance with KRS 141.400(6)(a)* or KRS 141.400(7)

method and the net income attributable to the KIDA

(a).***

project shall be determined by apportioning the

See form for computation.

separate accounting net income of the entire facility

to the KIDA project income using a formula approved

Part III—Limitation

by the Department of Revenue. A copy of the letter

Calculate KIDA tax credit based on the corporation’s tax

from the Department of Revenue approving the

liability, tax liability attributable to KIDA project, and

percentage must be attached to this schedule.

credit limitation from Schedule KIDA-T. Enter credit on

**** In accordance with KRS 141.400(7)(b), if the KIDA

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

project is an expansion to a previously existing

A corporation with more than one economic development

facility, Kentucky gross receipts or Kentucky gross

projec t must separately compute the tax credit

profits attributable to the entire facility shall be

derived from each project. Complete an applicable tax

determined under the separate accounting method

computation schedule (Schedule KREDA, Schedule

and the Kentucky gross receipts or Kentucky gross

KIDA, Schedule KEOZ, Schedule KJRA, Schedule

profits attributable to the KIDA project shall be

KIRA, Schedule KJDA, Schedule KBI, Schedule KRA or

determined by apportioning the separate accounting

Schedule IEIA) for each project. A corporation approved

Kentucky gross receipts or Kentucky gross profits

for the Skills Training Investment Credit Act (STICA) or

of the entire facility to the KIDA project Kentucky

Metropolitan College Consortium Tax Credit (MCC) must

gross receipts or Kentucky gross profits. A copy

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

of the letter from the Department of Revenue

State Skills Corporation. A corporation approved for the

approving the percentage must be attached to this

Kentucky Small Business Investment Credit Program

schedule.

Schedule Kida (Form 41a720-S20) - Tax Credit Computation Schedule (For A Kida Project Of A Corporation) Page 2

Related Articles

Related forms

Related Categories