Schedule Kra - Kentucky Tax Credit Computation Schedule (For A Kra Project Of A Corporation) Page 2
Download a blank fillable Schedule Kra - Kentucky Tax Credit Computation Schedule (For A Kra Project Of A Corporation) in PDF format just by clicking the "DOWNLOAD PDF" button.
Open the file in any PDF-viewing software. Adobe Reader or any alternative for Windows or MacOS are required to access and complete fillable content.
Complete Schedule Kra - Kentucky Tax Credit Computation Schedule (For A Kra Project Of A Corporation) with your personal data - all interactive fields are highlighted in places where you should type, access drop-down lists or select multiple-choice options.
Some fillable PDF-files have the option of saving the completed form that contains your own data for later use or sending it out straight away.
ADVERTISEMENT
1
2Page 2
41A720-S35 (10-15)
Commonwealth of Kentucky
INSTRUCTIONS—SCHEDULE KRA
DEPARTMENT OF REVENUE
The KRA 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 any
A corporation with more than one economic development
corporation which has entered into a reinvestment agreement
project must separately compute the tax credit derived
for a Kentucky Reinvestment Act (KRA) project to determine
from each project. Complete an applicable tax computation
the credit allowed against the Kentucky corporation income
schedule (Schedule KREDA, Schedule KIDA, Schedule KEOZ,
tax liability and LLET attributable to the project in accordance
Schedule KJRA, Schedule KIRA, Schedule KJDA, Schedule KBI,
with KRS 141.415.
Schedule KRA or Schedule IEIA) for each project. A corporation
approved for the Skills Training Investment Credit Act (STICA) or
GENERAL INSTRUCTIONS
Metropolitan College Consortium Tax Credit (MCC) must attach
a copy of the certification(s) from the Bluegrass State Skills
Part I—Computation of LLET Excluding KRA Project
Corporation. A corporation approved for the Kentucky Small
Line 2—Using Schedule LLET, create a new Schedule LLET to
Business Investment Credit Program (KSBIC) must attach a copy
compute the LLET of the KRA project using only the Kentucky
of the certification from the Kentucky Economic Development
gross receipts and Kentucky gross profits of the project. Enter
Finance Authority.
“KRA” at the top center of the Schedule LLET and attach it to
Alternative Methods—In accordance with KRS 141.415(8),
the tax return.
if the approved company can show that the nature of the
operations and activities of the approved company are such
If the corporation has operations other than the KRA project, it
that it is not practical to use separate accounting to determine
must attach schedules reflecting the computation of Kentucky
net income, Kentucky gross receipts or Kentucky gross profits
gross profits and Kentucky gross receipts from the KRA project
from the facility at which the project is located, the approved
in accordance with KRS 141.415(6)(b)** or KRS 141.415(7)
company shall determine net income, Kentucky gross receipts
(b).****
or Kentucky gross profits attributable to the project using an
Part II—Computation of Taxable Net Income Excluding Net
alternative method approved by the Department of Revenue.
Income from KRA Project and KRA Tax Credit
Thus, if any method other than separate accounting is used, a
copy of the letter from the Department of Revenue approving
Section B
the alternative method must be attached to this schedule.
Line 2—Enter net income from KRA project. If the corporation’s
* In accordance with KRS 141.415(6)(a), if the project is a
only operation in Kentucky is the KRA project, the amount
totally separate facility, net income attributable to the project
entered on Line 1 must be entered on Line 2. If the corporation
shall be determined by the separate accounting method.
has operations other than the KRA project, it must attach
schedules reflecting the computation of the net income from
** In accordance with KRS 141.415(6)(b), if the project is a totally
the KRA project in accordance with KRS 141.415(6)(a)* or KRS
separate facility, Kentucky gross receipts or Kentucky gross
profits attributable to the project shall be determined under
141.415(7)(a).***
the separate accounting method reflecting only the Kentucky
See form for computation.
gross receipts or Kentucky gross profits directly attributable
to the facility.
Part III—Limitation
*** In accordance with KRS 141.415(7)(a), if the KRA project is
For an approved company which received preliminary approval
an expansion to a previously existing facility, net income
for a reinvestment project prior to February 1, 2010, the amount
attributable to the entire facility shall be determined under
of incentives allowed in any tax year shall not exceed the lesser
the separate accounting method and the net income
of: (i) the tax liability of the approved company related to the
attributable to the KRA project shall be determined by
apportioning the separate accounting net income of the
reinvestment project for that taxable year, or (ii) the approved
entire facility to the KRA project income using a formula
costs that have not yet been recovered.
approved by the Department of Revenue. A copy of the letter
For an approved company which received preliminary approval
from the Department of Revenue approving the formula
must be attached to this schedule.
for a reinvestment project on or after February 1, 2010, the
amount of incentives allowed in any tax year shall not exceed
**** In accordance with KRS 141.415(7)(b), if the KRA project is
the lesser of: (i) the tax liability of the approved company related
an expansion to a previously existing facility, Kentucky gross
to the reinvestment project for that taxable year, (ii) twenty
receipts or Kentucky gross profits attributable to the entire
percent (20%) of the total amount of the approved costs, or (iii)
facility shall be determined under the separate accounting
the approved costs that have not yet been recovered.
method and the Kentucky gross receipts or Kentucky gross
profits attributable to the KRA project shall be determined
Line 3—Enter: (i) the total amount of the approved costs, if the
by apportioning the separate accounting Kentucky gross
company received preliminary approval for the project prior to
receipts or Kentucky gross profits of the entire facility to
February 1, 2010; or (ii) twenty percent (20%) of the total amount
the KRA project Kentucky gross receipts or Kentucky gross
of the approved costs, if the company received preliminary
profits. A copy of the letter from the Department of Revenue
approval for the project on or after February 1, 2010.
approving the formula must be attached to this schedule.
ADVERTISEMENT
0 votes
Related Articles
Related forms
Schedule Kra - Tax Credit Computation Schedule (for A Kra Project Of A Corporation) - Kentucky Department Of Revenue
Financial
Schedule Kbi - Kentucky Tax Credit Computation Schedule (for A Kbi Project Of A Corporation)
Financial
Schedule Kida - Kentucky Tax Credit Computation Schedule (for A Kida Project Of A Corporation)
Financial
Schedule Keoz - Kentucky Tax Credit Computation Schedule (for A Keoz Project Of A Corporation)
Financial
Schedule Kesa - Kentucky Tax Credit Computation Schedule (for A Kesa Project Of A Corporation)
Financial
Schedule Kreda - Kentucky Tax Credit Computation Schedule (for A Kreda Project Of A Corporation)
Financial
Schedule Ieia - Kentucky Tax Credit Computation Schedule (for An Ieia Project Of A Corporation)
Financial
Schedule Kra (form 41a720-s35) - Tax Credit Computation Schedule (for A Kra Project Of C Corporations)
Financial
Related Categories
Parent category: Financial