Kentucky Tracking Schedule for a FON Project

Tracking Schedule for a FON Project
Schedule FON-T
*1600010316*

SCHEDULE FON-T
41A720-S58 (10-16)
Commonwealth of Kentucky
DEPARTMENT OF REVENUE

TRACKING SCHEDULE
FOR A FON PROJECT

➤  See instructions.

KRS 141.410 to 141.414

➤  Attach to Schedule FON or FON-SP.
Name of Entity

Entity Type  	
Corporation	
	
Federal Identification Number	
	
Limited Liability Pass-through Entity			
	
General Partnership
__ __ __ __ __ __ __ __ __
	Other_________________________________________
Location of Project	
	
	

Activation Date of FON	
Incentive Agreement	

City               County

	A	

B	

Kentucky Corporation/LLET
Account Number

__ __ __ __ __ __
Farming Operation Networking
Project Number		

_ _ / _ _ / _ _

	

Mo.	Day	Yr.

C*	D	 E

Excess
Approved Costs
	
	
Approved
Taxable
for Current Taxable
				
Costs
Year
Year
				
(Col. D – Col. E
Ended
				
for Prior Year)
				
			

FON Tax
Credit Limitation
	

		=
	
+	=
	
+	=
	
+	=
	
+	=
	
+	=
	
+	=
	
+	=
	
+	=
	
+	=
	
+	=
	
+	=
	
+	=
	
+	=
	
+	=
	
+	=
	
+	=
	
+	=
	
+	=
	
+	=
	

FON Tax
Credit Claimed

	

41A720-S58 (10-16)

Commonwealth of Kentucky
DEPARTMENT OF REVENUE

INSTRUCTIONS—SCHEDULE FON-T

PURPOSE OF SCHEDULE—This schedule is used by
an entity which has a farming operation networking
project (FON) approved by the Cabinet for Economic
Development as provided by KRS 141.410 to 141.414, to
maintain a record of approved costs and the tax credits
taken for the duration of the project. This information is
necessary for the company to determine the limitation
of the tax credit for each taxable year of the agreement
and to allow the Kentucky Department of Revenue to
verify that the tax credit carryover has been properly
determined.
KRS 141.412 provides that any tax credit not used in the
taxable year in which it becomes available may be carried
forward to the next succeeding five (5) taxable years
until the tax credit has been fully used. The aggregate
tax credit used in any taxable year shall not exceed
the income, Kentucky gross profits or Kentucky gross
receipts, as the case may be, of the qualified farming
operation generated by or arising out of the qualified
farming operation’s participation in a networking project
in that taxable year.
GENERAL INSTRUCTIONS
“Approved costs” means costs incurred during the
taxable year by a qualified farming operation for training
and improving skills of managers and employees involved
in a networking project as provided by KRS 141.410(1).
“Qualified farming operation” means an individual,
sole proprietorship, partnership, joint venture, trust,
unincorporated organization, association, corporation, or
institution, engaged in farming in Kentucky that provides
raw materials for food-producing facilities in Kentucky,
and that purchases new buildings or equipment, or that
incurs training expenses, to support its participation in
a networking project.
KRS 141.414(3) provides that the net income subject to tax
and the tax credit determined under KRS 141.414(2) shall
be excluded in determining each partner’s, member’s,
shareholder’s or beneficiary’s distributive share of net
income or credit of the pass-through entity or trust.
A s i n g l e S c h e d u l e F O N -T, Tr a c k i n g S c h e d u l e
for a FON Project, shall be maintained for the duration

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of each FON project. Beginning with the first taxable
year of the FON incentive agreement, complete Columns
A through E using a separate line for each year of the
agreement. The company shall attach a copy of this
schedule updated with current year information to the
Schedule FON or Schedule FON-SP which is filed with
the Kentucky tax return for the year.
For Form 720, all tax credits are entered on Schedule
TCS, Tax Credit Summary Schedule. The total tax credits
calculated may exceed the amount that can be used.
Credits must be claimed in the order prescribed by KRS
141.0205. Total credits claimed cannot reduce the LLET
below the $175 minimum. Total credits claimed cannot
reduce the income tax liability below zero.
SPECIFIC INSTRUCTIONS
Column A—Enter on each line the ending date (month,
day and year) of the taxable year for which the information
in Columns B through E is entered.
Column B—This column will be blank for the first taxable
year of the agreement. For each year thereafter, if the
amount entered in Column D for the prior year exceeds
the amount entered in Column E for the prior year, enter
the difference. If the amount entered in Column E for the
prior year equals the amount entered in Column D for the
prior year, enter zero (-0-).
Column C—Enter the total amount of approved costs for
the taxable year.
Column D—Enter the result of adding the amounts
entered in Columns B and C. Also, enter this amount on
Schedule FON, Part III, Line 2 or Schedule FON-SP, Part
I, Line 8, whichever is applicable.
Column E—The FON tax credit is applied against the
corporation income tax imposed under KRS 141.040
and/or the limited liability entity tax imposed under KRS
141.0401. The tax credit calculated for each tax can be
different; however, for tracking purposes, the maximum
amount used against either tax is recorded as the amount
claimed. Enter the greater of Column E or Column F from
Schedule TCS for this project.