Form 41a765(I) - Kentucky Partnership Income And Llet Return Instructions

Tax Credit Summary Schedule—Schedule TCS

Schedule TCS is used by corporations and limited liability pass-through entities to apply tax credits for entities subject to 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. Taxpayer as used in this section refers to corporations and limited liability pass-through entities.

Certified Rehabilitation Tax Credit—This credit is allowed only

Economic Development Tax Credits—This section is completed

if the taxpayer has been approved for the credit by the Kentucky

only if a limited liability pass-through entity has been approved

Heritage Council. Credit is allowed against the taxes imposed

for one of more of the credits authorized by the: (i) Metropolitan

College Consortium Tax Credit (MCC – KRS 141.381); (ii)

by KRS 141.020, KRS 141.040, KRS 141.0401 and KRS 136.505

for qualified rehabilitation expenses on certified historic

Kentucky Small Business Investment Credit Program (KSBIC

– KRS 141.384); or (iii) Skills Training Investment Credit Act

structures. Information regarding this credit is available at

KRS 171.397

(STICA – KRS 154.12).

Unemployment Tax Credit—If a taxpayer has hired a Kentucky

A limited liability pass-through entity shall not enter income

resident classified as unemployed for at least 60 days and

or LLET tax credits on Schedule TCS from: (i) Kentucky

the resident remains in the employ of the taxpayer for 180

Rural Economic Development Act (KREDA – KRS 154.22); (ii)

consecutive days during the tax year (a qualified person),

Kentucky Industrial Development Act (KIDA – KRS 154.28);

(iii) Kentucky Economic Opportunity Zone Act (KEOZ – KRS

the taxpayer may be entitled to the unemployment tax credit

against the taxes imposed by KRS 141.020, KRS 141.040

154.23); (iv) Kentucky Jobs Retention Agreement (KJRA – KRS

154.25); (v) Kentucky Industrial Revitalization Act (KIRA – KRS

and KRS 141.0401. For each qualified person, a one–time

nonrefundable credit of $100 may be claimed. The period

154.26); (vi) Kentucky Jobs Development Act (KJDA – KRS

of unemployment must be certified by the Education and

154.24); (vii) Kentucky Business Investment Program (KBI

Workforce Development Cabinet, Department of Workforce

– KRS 154.32); (viii) Kentucky Reinvestment Act (KRA – KRS

Investment, Office of Employment and Training, Frankfort,

154.34); or (ix) Incentives for Energy Independence Act (IEIA

KY, and a copy of the certification must be maintained by

– KRS 154.27).

the taxpayer. For certification questions, call (502) 564–7456.

A limited liability pass-through entity shall file Schedule

Schedule UTC must be attached to the return claiming this

credit. KRS 141.065

KREDA-SP, Schedule KIDA-SP, Schedule KEOZ-SP, Schedule

KJRA-SP, Schedule KIRA-SP, Schedule KJDA-SP, Schedule

Recycling/Composting Tax Credit—A taxpayer, which

KBI-SP, Schedule KRA-SP or Schedule IEIA-SP to compute the

purchases recycling and/or composting equipment to be

tax credits for these programs.

used exclusively in Kentucky for recycling or composting

post- consumer waste materials, may be entitled to a

To claim the STICA or MCC credit, a copy of the tax credit

nonrefundable credit against the taxes imposed by KRS

certification(s) received from Bluegrass State Skills Corporation

141.020, KRS 141.040 and KRS 141.0401 in an amount equal to

reflecting the amount of credit awarded shall be attached to

the tax return. The credit for either the STICA or MCC shall

50 percent of the installed cost of the equipment. Application

for this credit must be made on Schedule RC, and a copy of

be claimed on the tax return filed for the taxable year during

which the final authorizing resolution is adopted by Bluegrass

the schedule reflecting the amount of credit approved by the

Department of Revenue must be attached to the tax return on

State Skills Corporation. The STICA credit not used during

which the credit is claimed. The amount of this credit claimed

the year in which the final authorizing resolution is adopted

for the tax year may not exceed 25 percent of the tax liability

by Bluegrass State Skills Corporation may be carried forward

and cannot exceed 10 percent of the credit approved in the

three successive years; the MCC credit not used during the

first year of eligibility.

year in which the final authorizing resolution is adopted by

Bluegrass State Skills Corporation may be carried forward to

tax years ending before April 15, 2013. If a STICA or MCC credit

For taxable years beginning after December 31, 2004, a

taxpayer which purchases recycling and /or composting

is being carried forward from a prior year, attach a schedule

reflecting the original credit available, the amount of the credit

equipment to be used exclusively in Kentucky for recycling or

composting post–consumer waste material that qualifies as a

used each year and the balance of the credit.

Major Recycling Project is entitled to a nonrefundable credit

against the taxes imposed by KRS 141.020, KRS 141.040 and

To claim the KSBIC credit, a copy of the tax credit notification

KRS 141.0401. The credit is an amount equal to 50 percent of the

received from Kentucky Economic Development Finance

installed cost of the recycling or composting equipment limited

Authority (KEDFA) reflecting the amount of credit awarded

to: 50 percent of the excess of the total of each tax liability

shall be attached to the tax return. The credit for the KSBIC

shall be claimed on the tax return for the taxable year during

over the baseline tax liability of the taxpayer or $2,500,000. To

qualify, the taxpayer must: (1) invest more than $10,000,000

which the credit was approved by KEDFA. The tax credit not

used during the year of approval by KEDFA may be carried

in recycling or composting equipment to be used exclusively

in this state; (2) have more than 750 full–time employees

forward up to five years. If a KSBIC credit is being carried

with an average hourly wage of more than 300 percent of the

forward from a prior year, attach a schedule reflecting the

federal minimum wage; and (3) have plant and equipment

original credit available, the amount of the credit used each

with a total cost of more than $500,000,000. Application for

year and the balance of the credit.

this credit must be made on Schedule RC, and a copy of the

schedule reflecting the amount of credit approved by the

Economic development tax credits are allowed against the

taxes imposed by KRS 141.020 or KRS 141.040 and KRS

Department of Revenue must be attached to the tax return on

which the credit is claimed. The credit is limited to a period

141.0401.

of 10 years commencing with the approval of the recycling

credit application.

Information regarding the approval process for these credits

may be obtained from the Cabinet for Economic Development,

A taxpayer is entitled to claim the recycling credits in KRS

Department for Financial Incentives (telephone: 502-564-4554)

141.390(2)(a) and (b), but cannot claim both for the same

or Bluegrass State Skills Corporation (telephone: 502-564-

recycling and/or composting equipment. KRS 141.390

2021).

Form 41a765(I) - Kentucky Partnership Income And Llet Return Instructions - 2011 Page 12

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