Schedule Kesa-T (Form 41a720kesa-T) - Tracking Schedule For A Kesa Project (Page 2 of 2) in pdf

41A720KESA-T (10-13)

Page 2

Commonwealth of Kentucky

DEPARTMENT OF REVENUE

INSTRUCTIONS—SCHEDULE KESA-T

PURPOSE OF SCHEDULE—This schedule is used by

KRS 154.48-025(5) provides that the carryover of

a company which has entered into an agreement

inducements shall not be longer than the earlier of: (a)

for a Kentucky Environmental Stewardship Act

the date on which the approved company has received

(KESA) project to maintain a record of the balance of

inducements equal to the approved costs of its project;

approved costs and credits claimed for the duration

or (b) ten (10) years from the activation date.

of the agreement. This information is necessary for

the company to determine the limitation of the tax

SPECIFIC INSTRUCTIONS

credit for each year of the agreement and to allow the

Kentucky Department of Revenue to verify that the

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

credit has been properly computed.

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

requested in Columns B and C is entered.

GENERAL INSTRUCTIONS

Column B—Enter the total authorized inducement for

the tax year of activation. For each year thereafter,

A separate Schedule KESA-T, Tracking Schedule for

if the amount entered in Column B for the prior year

a KESA Project, shall be maintained for the duration

exceeds the amount entered in Column C for the prior

of each KESA project. Beginning with the tax year

year, enter the difference. If the amount entered in

of activation, complete Columns A through C using

Column C for the prior year equals the amount entered

a separate line for each year of the agreement. The

in Column B for the prior year, enter zero (-0-).

company shall attach a copy of this schedule updated

with current year information to the Schedule KESA

Column C—The KESA tax credit is applied against the

or Schedule KESA-SP which is filed with the Kentucky

income tax imposed by KRS 141.020 or KRS 141.040

income tax return for the year.

and the limited liability entity tax imposed by KRS

141.0401. The tax credit calculated for each tax can

For Form 720, all tax credits are entered on Schedule

be different; however, for tracking purposes, the

TCS, Tax Credit Summary Schedule. The total tax

maximum amount used against either tax is recorded

credits calculated may exceed the amount that can be

as amount claimed. Enter the greater of Column E or

used. Credits must be claimed in the order prescribed

Column F from Schedule TCS for this project. The

by KRS 141.0205. Total credits claimed cannot reduce

maximum amount of KESA credit claimed by an

the LLET below the $175 minimum. Total credits

approved company for any single taxable year cannot

claimed cannot reduce the income tax liability below

exceed twenty-five percent (25%) of the total approved

zero.

costs.

Schedule Kesa-T (Form 41a720kesa-T) - Tracking Schedule For A Kesa Project Page 2

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