Schedule Kreda-T (Form 41a720-S17) - Tracking Schedule For A Kreda Project (Page 2 of 2) in pdf

41A720-S17 (10-13)

Page 2

Commonwealth of Kentucky

DEPARTMENT OF REVENUE

INSTRUCTIONS—SCHEDULE KREDA-T

PURPOSE OF SCHEDULE—This schedule is used

date the financing agreement was executed. For

by a company which has entered into a financing

projects which received preliminary approval from

agreement or tax incentive agreement for a Kentucky

KEDFA after July 15, 1996, enter the date established

Rural Economic Development Act (KREDA) project

by the approved company as the activation date for

to maintain a record of the debt service payments

implementation of the inducements authorized by the

or approved costs, whichever is applicable, wage

financing agreement.

assessments and tax credits (income tax and limited

liability entity tax (LLET)) for the duration of the

SPECIFIC INSTRUCTIONS

agreement. This information is necessary for the

company to determine the limitation of the tax credit for

Column A—Enter on each line the ending date (month,

each year of the agreement and to allow the Kentucky

day and year) of the tax year for which the information

Department of Revenue to verify that the credit has

requested in Columns B through F is entered.

been properly computed.

Column B—This column will always be blank for the

GENERAL INSTRUCTIONS

first taxable year of the agreement. For each year

thereafter, if the amount entered in Column E for the

The 2002 General Assembly amended KRS 154.22-

prior year exceeds the amount entered in Column F

010 to 154.22-100, effective on July 15, 2002. Projects

for the prior year, enter the difference. If the amount

that received preliminary approval from the Kentucky

entered in Column F for the prior year equals the

Economic Development Finance Authority (KEDFA)

amount entered in Column E for the prior year, enter

prior to July 15, 2002, and have entered into a financing

zero (-0-).

agreement no later than June 30, 2003, shall be subject

to KRS 154.22-010 to 154.22-100 as in effect prior to

Column C—Enter the total amount of debt service

July 15, 2002.

payment or approved costs, whichever is applicable

in accordance with the agreement, for the taxable

A separate Schedule KREDA-T, Tracking Schedule

year. Debt service payment includes both principal

for a KREDA Project, shall be maintained for the

and interest paid in accordance with the financing

duration of each KREDA project. Beginning with the

agreement.

first tax year of the KREDA financing agreement or tax

incentive agreement, complete Columns A through F

Column D—Enter the total amount of employee wage

using a separate line for each year of the agreement.

assessments (both the state and local portion) withheld

The company shall attach a copy of this schedule

from the salaries of employees during the taxable

updated with current year information to the Schedule

year.

KREDA or Schedule KREDA-SP which is filed with the

Kentucky tax return for the year.

Column E—Enter the result of adding the amounts

entered in Columns B and C and subtracting the

For Form 720, all tax credits are entered on Schedule

amount entered in Column D. Also, enter on Schedule

TCS, Tax Credit Summary Schedule. The total tax credits

KREDA, Part III, Line 2 or Schedule KREDA-SP, Part I,

calculated may exceed the amount that can be used.

Line 8, whichever is applicable.

Credits must be claimed in the order prescribed by KRS

141.0205. Total credits claimed cannot reduce the LLET

Column F—The KREDA tax credit is applied against the

below the $175 minimum. Total credits claimed cannot

corporation income tax imposed under KRS 141.040

reduce the income tax liability below zero.

and/or the limited liability entity tax imposed under

KRS 141.0401. The tax credit calculated for each tax

Activation Date of KREDA Incentive Agreement—For

can be different; however, for tracking purposes, the

projects which received preliminary approval from

maximum amount used against either tax is recorded

the Kentucky Economic Development Finance

as the amount claimed. Enter the greater of Column E

Authority (KEDFA) prior to July 15, 1996, enter the

or Column F from Schedule TCS for this project.

Schedule Kreda-T (Form 41a720-S17) - Tracking Schedule For A Kreda Project Page 2

Related Articles

Related forms

Related Categories