Schedule Utc - Unemployment Tax Credit Krs 141.065 (Page 2 of 2) in pdf

Page 2

42A740-UTC (10-12)

*1200020021*

Commonwealth of Kentucky

DEPARTMENT OF REVENUE

PERSONS EMPLOYED—continued

25. Enter total number of employees listed on line 24 ...........................................................................

26. Unemployment tax credit (multiply line 25 by $100) ........................................................................

27. Form 720—Enter on Schedule TCS, Part II, Columns E and F .........................................................

28. Form 720S—Enter on Schedule TCS, Part II, Column E and on Form 720S, Schedule K ..............

29. Form 725—Enter on Schedule TCS, Part II, Column E ......................................................................

30. Form 740—Enter on Form 740, Section A .........................................................................................

31. Form 740-NP—Enter on Form 740-NP, Section A .............................................................................

32. Form 741—Enter on Form 741, Line 18 ..............................................................................................

33. Form 765—Enter on Schedule TCS, Part II, Column E and on Form 765, Schedule K ...................

34. Form 765-GP—Enter on Form 765-GP, Schedule K ..........................................................................

INSTRUCTIONS FOR SCHEDULE UTC

KRS 141.065(2) provides a tax credit for a taxpayer against the tax imposed by KRS 141.020 or 141.040 and 141.0401

for any taxable year, with the ordering of the credits as provided in KRS 141.0205, in an amount equal to one hundred

dollars ($100) for each person hired by the taxpayer, if that person has been classified as unemployed by the Office of

Employment and Training of the Department of Workforce Investment in the Education and Workforce Development

Cabinet and has been so classified for at least sixty (60) days prior to his employment by the taxpayer, and if that

person has remained in the employ of the taxpayer for at least one hundred eighty (180) consecutive days during the

taxable year in which the taxpayer claims the credit.

KRS 141.065(3) provides that no credit shall be allowed to any taxpayer for any person hired under any of the following

circumstances: (a) A person for whom the taxpayer receives federally funded payments for on–the–job training;

(b) For any person who bears any of the relationships to the taxpayer described in paragraphs (1) through (8) of

Section 152(a) of the Internal Revenue Code, or, if the taxpayer is a corporation, to an individual who owns, directly

or indirectly, more than fifty percent (50%) in value of the outstanding stock of the corporation as determined with

the application of Section 267(c) of the Internal Revenue Code; (c) If the taxpayer is an estate or trust, to any person

who is a grantor, beneficiary, or fiduciary of the estate or trust, or is an individual who bears any of the relationships

described in paragraphs (1) through (8) of Section 152(a) of the Internal Revenue Code to a grantor, beneficiary, or

fiduciary of the estate or trust; or (d) To any person who is a dependent of the taxpayer as described in Section 152(a)

(9) of the Internal Revenue Code, or, if the taxpayer is an estate or trust, of a grantor, beneficiary, or fiduciary of the

estate or trust.

KRS 141.065(4) and (5) provide that related corporations or unincorporated trades and business shall be treated as a

single employer for purposes of the tax credit, and in no instance shall the credit for any qualified employee be claimed

more than once for any tax year. Also, KRS 141.065(6) provides that no tax credit shall be allowed to any organization

which is exempt from income tax as provided by KRS Chapter 141.

KRS 141.065(7) provides that the tax credit for a pass–through entity shall be applied at the entity level against the

limited liability entity tax imposed by KRS 141.0401 and also shall be distributed to each partner, member or shareholder

based on the partner’s, member’s or shareholder’s pro rata share.

KRS 141.065(8) provides that the tax credit for an estate or trust shall be apportioned between the estate or trust and

the beneficiaries on the basis of income of the estate or trust allocable to each.

Schedule Utc - Unemployment Tax Credit Krs 141.065 Page 2