Schedule Kbi-T - Tracking Schedule For A Kbi Project (Page 2 of 2) in pdf

41A720-S55 (10-14)

Page 2

Commonwealth of Kentucky

DEPARTMENT OF REVENUE

INSTRUCTIONS—SCHEDULE KBI-T

PURPOSE OF SCHEDULE—This schedule is used by

SPECIFIC INSTRUCTIONS

a company which has entered into a tax incentive

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

agreement for a Kentucky Business Incentive Program

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

(KBI) project to maintain a record of the approved

requested in Columns B through F is entered.

costs, wage assessments and tax credits (income tax

and limited liability entity tax (LLET)) for the duration

Column B—This column will always be blank for the

of the agreement. This information is necessary for the

first taxable year of the agreement. For each year

company to determine the limitation of the tax credit for

thereafter, if the amount entered in Column E for the

each year of the agreement and to allow the Kentucky

prior year exceeds the amount entered in Column F

Department of Revenue to verify that the credit has

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

been properly computed.

entered in Column F for the prior year equals the

amount entered in Column E for the prior year, enter

zero (-0-).

GENERAL INSTRUCTIONS

Column C—Enter the total amount of approved costs in

accordance with the agreement for the taxable year.

A separate Schedule KBI-T, Tracking Schedule

Column D—Enter the total amount of employee wage

for a KBI Project, shall be maintained for the duration

assessments imposed on the salaries of employees

of each KBI project. Beginning with the first tax year

during the taxable year.

of the KBI tax incentive agreement, complete Columns

A through F using a separate line for each year of the

Column E—Enter the result of adding the amounts

agreement. The company shall attach a copy of this

entered in Columns B and C and subtracting the

schedule updated with current year information to the

amount entered in Column D. Also, enter on Schedule

Schedule KBI or Schedule KBI-SP which is filed with

KBI, Part III, Line 2, or Schedule KBI-SP , Part I, Line 8,

the Kentucky tax return for the year.

whichever is applicable.

Column F—The KBI project tax credit is applied against

For Form 720, all tax credits are entered on Schedule

the corporation income tax imposed under KRS 141.040

TCS, Tax Credit Summary Schedule. The total tax credits

and/or the limited liability entity tax imposed under

calculated may exceed the amount that can be used.

KRS 141.0401. The tax credit calculated for each tax

Credits must be claimed in the order prescribed by KRS

can be different; however, for tracking purposes, the

141.0205. Total credits claimed cannot reduce the LLET

larger amount used against either tax is recorded as

below the $175 minimum. Total credits claimed cannot

the amount claimed. Enter the greater of Column E or

reduce the income tax liability below zero.

Column F from Schedule TCS for this project.

Schedule Kbi-T - Tracking Schedule For A Kbi Project Page 2

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