Kentucky Food Donation Tax Credit - Schedule 41A720FD

Food Donation Tax Credit - Schedule 41A720FD
Schedule FD
SCHEDULE FD

Taxable Year Ending

*1600010340*

41A720FD (06-16)
Commonwealth of Kentucky
DEPARTMENT OF REVENUE

	

__ __ / __ __
Mo.	Yr.

FOOD DONATION TAX CREDIT
KRS 141.392

➤  Attach to Form 720, 720S, 725, 740, 740-NP, 741, 765 or 765-GP.

	 Name of Entity (Donor)	

Identification Number (SSN or FEIN)	

	

Kentucky Corporation/LLET Account Number
(if applicable)

	 __ __ __ __ __ __ __ __ __	

		
	 Address (Number, Street, and Room or Suite No.)	

__ __ __ __ __ __

City, State and Zip Code

Part I - Qualifications
	 •	 Are you a person responsible for and deriving income from:
		 1.	 Growing fruits, vegetables, or other edible agricultural products; or
		 2.	 Raising beef, poultry, pork, fish, or other edible agricultural products?.....................................	 ¨ YES  ¨ NO
	 •	 Was the edible agricultural products that is intended for and fit for human
		 consumption raised or grown in Kentucky?.......................................................................................	 ¨ YES  ¨ NO
	 •	 Was the edible agricultural products provided free of fee or charge to a
		 nonprofit food program operating in Kentucky?................................................................................	 ¨ 
YES  ¨ NO
If you answered “No” to any of these questions above, STOP, you do not qualify for this credit.
If you answered “Yes” to all questions above, go to Part II.
Part II - Information on Donated Food - To be completed by taxpayer making the donation and/or donee
	
	

	 Fruits 	
	Pork	

	 Beef 	
	Poultry
	 Other edible product___________________________________	

	Vegetables	
	Fish	

A

Description of
Donated Food

B

Date
Donated

C

Quantity of
Donation

D

Fair Market Price
Per Unit of Measure

E

Fair Market Value
(multiply Column C by Column D)

	 1.			 1	
	 2.			 2	
	 3.			 3	
	 4.			 4	
	 5.			 5	
	 6.			 6	
	 7.	 Total fair market value of donation (add Column E, lines 1 through 6)............................... 	7	
	 8.	 Reimbursements received from all sources.......................................................................... 	8	
	 9.	 Total fair market value of donation less reimbursements (subtract line 8 from line 7)..... 	9	
	10.	 Credit percentage		 10	
	11.	 Credit amount. Multiply line 9 by line 10............................................................................... 	11	
12.	 Enter the unused prior year carryforward amount from the total line of the
		 Carryforward Worksheet.......................................................................................................... 	12	
13.	 Total credit amount (add lines 11 and 12). Enter result here and on applicable form or
		schedule.................................................................................................................................... 	13	

00
00
00
00
00
00
00
00
00
10%
00
00
00

Part III - Taxpayer (Donor) Statement

I, the undersigned, declare under the penalties of perjury, that to the best of my knowledge and belief, the information
and fair market values included in Part I are true, correct and complete.
		 Signature of Taxpayer (Donor)__________________________________________________________	Date___________________________________

		
______________________________________________________________________________________
		 Type Name and Title of Person Signing This Document

	

41A720FD (06-16)

Commonwealth of Kentucky
DEPARTMENT OF REVENUE

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*1600010345*

Part IV - Donee Acknowledgement - To be completed by the charitable organization

I, the undersigned, declare under the penalties of perjury, that this charitable organization is exempt from federal
income tax under Section 501(c)(3) of the Internal Revenue Code, that it operates a surplus food collection and
distribution program as defined in KRS 141.392(1)(c), and that I have examined this schedule, and to the best of my
knowledge and belief, it is true, correct and complete.
Name of Charitable Organization (Donee)	

Employer Identification Number

Address (Number, Street, and Room or Suite No.)	

City, State and Zip Code

Authorized Signature	

Title	

Date

INSTRUCTIONS—SCHEDULE FD
PURPOSE OF SCHEDULE—This schedule is used by a
qualified taxpayer (donor) who provides free of fee or
charge edible agriculture products to a nonprofit food
program operating in Kentucky as provided by KRS
141.392.

A tax credit not used by a qualified taxpayer in the
current taxable year may be carried forward for up to
four (4) succeeding years.

For taxable years beginning on or after January 1, 2014,
but before January 1, 2018, any donor shall be allowed a
nonrefundable credit (food donation tax credit) against
the tax imposed by KRS 141.020 or 141.040 and 141.0401,
with the ordering of credits as provided by KRS 141.0205,
in the amount equal to ten percent (10%) of the value
of the donated edible agricultural products. A qualified
taxpayer claiming the food donation tax credit shall
attach this schedule to the applicable tax return.

Part I – Qualifications

A qualified taxpayer means a person responsible for
and deriving income from: (i) growing fruits, vegetables,
or other edible agriculture products; or (ii) raising beef,
poultry, pork, fish, or other edible agriculture products.
Edible agriculture products means fruits, vegetables,
beef, poultry, pork, fish, or any other edible product
raised or grown in Kentucky that is intended for and fit
for human consumption. KRS 141.392

Lines 1 through 6—Enter the following: Column A, the
description of the item of food being donated; Column
B, the date donated; Column C, the quantity of the food
item; Column D, the fair market price of each unit of
measure; and Colum E, the total fair market value.

A qualified taxpayer that is a pass-through entity
not subject to the tax imposed by KRS 141.040 shall
apply the food donation tax credit against the limited
liability entity tax imposed by KRS 141.0401, and shall
distribute the amount of the approved tax credit to each
partner, member or shareholder based on the partner’s,
member’s or shareholder’s distributive share of income
as determined for the taxable year during which the
tax credit is approved, with the ordering of credits as
provided by KRS 141.0205.

KRS 141.392(3)(b) provides that a donor shall determine
the value of the donated edible agriculture products
as follows: (i) if there was a previous sale of the edible
agriculture products to a buyer, the donor shall retain a
copy of an invoice or other statement identifying the price
received by the donor for the edible agriculture products
of comparable grade and quality; or (ii) If there is no
previous sale to a buyer, the donor shall on the date of
the donation, determine the value of the donated edible
agriculture products based on the fair market value as

GENERAL INSTRUCTIONS

Answer the questions provided in Part I and proceed to
Part II if applicable.
Part II – Information on Donated Food
Check the box that best describes the donated food. If
the box for “Other edible product” is checked, describe
the product in the space provided.

Attach a separate schedule if more than 6 items are
being donated.

	

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41A720FD (06-16)

Commonwealth of Kentucky
DEPARTMENT OF REVENUE

determined by average weekly regional produce auction
prices or United States Department of Agriculture prices
for meat, fish and dairy products.

Part III – Taxpayer (Donor) Statement

Line 8—Reimbursements received from all sources,
such as any reimbursed costs of picking or transporting
the donated food.

The taxpayer (donor) or the representative of the
taxpayer shall certify that the information and fair market
values included in Part I are true, correct and complete.
Enter the date signed, and type the name and title of
person signing this document in the spaces provided.
Failure to sign the schedule or to provide all information
may result in the disallowance of the tax credit.

Line 9—Subtract Line 8 from Line 7.

Part IV – Donee Acknowledgement

Line 11—Multiply Line 9 by Line 10.

The representative of the charitable organization (donee)
shall certify that the charitable organization is exempt
from federal income tax under Section 501(c)(3) of the
Internal Revenue Code, certify that it operates a surplus
food collection and distribution program as defined
in KRS 141.392(1)(c), and certify that the information
included in the schedule is true, correct and complete.
Enter the name, Employer Identification Number, and
address of the charitable organization in the spaces
provided. Also, enter the title of person signing this
document and the date in the spaces provided. Failure
to sign the schedule or to provide all information may
result in the disallowance of the tax credit.

Line 7—Add Lines 1 through 6.

Line 12— Enter the unused prior year carryforward
amount from the total line of the Carryforward
Worksheet.
Carryforward Worksheet
The Kentucky food donation tax credit can be carried
forward for up to 4 years if unused during the preceding
tax year(s). You must have completed Schedule FD for
any prior year(s) in which you are claiming a credit
carryforward.
2016 Carryforward Worksheet
A. Credit carryforward from 2014 to 2016	________________
B. Credit carryforward from 2015 to 2016	________________
C. Total carryforward	

________________

Line 13—Add Lines 11 and 12. Enter the amount on this
line and the applicable tax form or schedule. In order to
claim the credit, this schedule must be attached to the
applicable tax return.