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Kentucky Railroad Maintenance and Improvement Tax Credit
Extracted from PDF file 2023-kentucky-schedule-rr-i.pdf, last modified June 2023Railroad Maintenance and Improvement Tax Credit
SCHEDULE RR-I RAILROAD MAINTENANCE AND IMPROVEMENT TAX CREDIT Commonwealth of Kentucky Department of Revenue 2023 See instructions. Attach to Form 720, 720U, PTE, 725, 740, 740-NP, or 741. Name of Entity Mailing Address Location Address KRS 141.385 and 141.387 Federal Identification Number Kentucky Corporation/LLET Account Number (if applicable) __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ Taxed as: Corporation Limited Liability Pass-through Entity General Partnership Individual Other Part I—Qualifications Yes 1 Were the “qualified expenditures” made on property that was not owned or leased on January 1, 2008, by a Class II or Class III railroad?................................................................... 2 3 Was a tax credit claimed per KRS 141.386 on the same “qualified expenditures”?........................ Was a tax credit claimed per KRS 141.385 or 141.386 by another taxpayer on the same “qualified expenditures”?........................................................................................................ No If you answered “yes” to any of the questions above, STOP; you do not qualify for this credit. If you answered “no” to ALL of the questions above, go to Part II. Part II—Computation of the Credit 1 Enter the amount of qualified expenditures paid or incurred 3 Enter the number of miles of railroad track in Kentucky owned or 00 00 by the taxpayer during the tax year............................................................................................................. 1 2 Enter 50% of line 1...................................................................................................................................... leased by the taxpayer at the close of the taxable year 3 00 4 5 00 00 2 4 Enter the number of miles of railroad track in Kentucky assigned to the taxpayer by a Class II railroad or Class III railroad 5 Enter the total of lines 3 and 4 6 Multiply line 5 by $3,500.............................................................................................................................. 6 00 00 7 Enter the lesser of line 2 or line 6................................................................................................................ 7 Part III—Railroad Maintenance and Improvement Credit Used By Taxpayer 00 00 00 1 LLET Credit—Enter on Schedule TCS, Part II, Column E ......................................................................... 1 2 Corporation Income Tax Credit—Enter on Schedule TCS, Part II, Column F......................................... 2 3 Individual Income Tax Credit—Enter on Form 740, 740–NP, or 741....................................................... 3 No Carryforward Allowed 230318 41A720RR-I (10-23) Page 1 of 2 Schedule RR-I (2023) INSTRUCTIONS FOR SCHEDULE RR–I Page 2 of 2 The railroad maintenance and improvement credit per KRS 141.385 is a nonrefundable credit that can be applied against the income taxes imposed by KRS 141.020 or 141.040, and the limited liability entity tax (LLET) imposed by KRS 141.0401. The tax credit must be used in the tax year of the qualified expenditures which generated the tax credit and cannot be carried forward to a return for any other period. If a qualified expenditure qualifies for both the railroad maintenance and improvement credit per KRS 141.385 and the railroad expansion tax credit as per KRS 141.386, the taxpayer must claim either the credit per KRS 141.385 or the credit per KRS 141.386, but not both. Purpose of Schedule—This schedule is used to compute the railroad maintenance and improvement credit. An eligible taxpayer means: (i) the owner of any Class II railroad or Class III railroad located in Kentucky; or (ii) any person who transports property using the rail facilities of a Class II railroad or Class III railroad located in Kentucky or furnishes railroad– related property or services to a Class II railroad or Class III railroad located in Kentucky, but only with respect to miles of railroad track assigned to the person by a Class II railroad or Class III railroad for purposes of the tax credit. Part II—Computation of the Credit Class II railroad means a railroad company classified as a Class II carrier by the federal Surface Transportation Board. Line 4—Enter the number of miles of railroad track in Kentucky assigned for purposes of the tax credit per KRS 141.385 to the eligible taxpayer by a Class II railroad or Class III railroad which owns or leases the railroad track as of the close of the taxable year. Class III railroad means a railroad company classified as a Class III carrier by the federal Surface Transportation Board. Qualified expenditures means expenditures, whether or not otherwise chargeable to a capital account, that are made to maintain or improve railroads located in Kentucky, including roadbeds, bridges, and related structures, that are owned or leased as of January 1, 2008, by a Class II or Class III railroad. The railroad maintenance and improvement tax credit is an amount equal to 50% of the qualified expenditures paid or incurred by the taxpayer during the tax year, but must not exceed the product of $3,500 multiplied by the sum of: (i) the number of miles of railroad track in Kentucky owned or leased by the eligible taxpayer as of the close of the taxable year; and (ii) the number of miles of railroad track in Kentucky assigned per KRS 141.385 to the eligible taxpayer by a Class II railroad or Class III railroad which owns or leases the railroad track as of the close of the taxable year. Line 1—Enter the amount of qualified expenditures paid or incurred by the taxpayer during the tax year. Line 2—Enter fifty percent (50%) of Line 1. Line 3—Enter the number of miles of railroad track in Kentucky owned or leased by the eligible taxpayer as of the close of the taxable year. Line 5—Enter total of Lines 3 and 4. Line 6—Enter the amount on Line 5 multiplied by $3,500. Line 7—Enter the lesser of Line 2 or Line 6. Part III—Railroad Maintenance and Improvement Credit Used by Taxpayer Line 1—Enter the amount of the credit claimed for the taxable year against the LLET on Schedule TCS, Part II, Column E. The credit amount cannot reduce the LLET below the $175 minimum. Line 2—Enter the amount of the credit claimed for the taxable year against the corporation income tax on Schedule TCS, Part II, Column F. If a credit is taken per KRS 141.385(2), the basis of the track must be reduced by the amount of credit taken. Line 3—Enter the amount of the credit claimed for the taxable year on Form 740, 740-NP, or 741. Part I—Qualifications A pass-through entity must include on each Schedule K-1 the partner’s, member’s, shareholder’s, or beneficiary’s pro rata share of the approved credit. Qualified expenditures must be made on property that was owned or leased on January 1, 2008, by a Class II or Class III railroad. If you have taken the railroad expansion tax credit per KRS 141.386 on the same qualified expenditures, you do not qualify for this credit. If a tax credit was claimed per of KRS 141.385 or 141.386 by another taxpayer on the same qualified expenditures, you do not qualify for this credit. 41A720RR-I (10-23) Attach Schedule RR-I to the tax return claiming the credit.
Schedule RR-I
More about the Kentucky Schedule RR-I Corporate Income Tax Tax Return TY 2023
We last updated the Railroad Maintenance and Improvement Tax Credit in February 2024, so this is the latest version of Schedule RR-I, fully updated for tax year 2023. You can download or print current or past-year PDFs of Schedule RR-I directly from TaxFormFinder. You can print other Kentucky tax forms here.
Related Kentucky Corporate Income Tax Forms:
TaxFormFinder has an additional 129 Kentucky income tax forms that you may need, plus all federal income tax forms. These related forms may also be needed with the Kentucky Schedule RR-I.
| Form Code | Form Name |
|---|---|
| Schedule RR-E | Application and Credit Certificate of Income Tax / LLET Credit Railroad Expansion |
View all 130 Kentucky Income Tax Forms
Form Sources:
Kentucky usually releases forms for the current tax year between January and April. We last updated Kentucky Schedule RR-I from the Department of Revenue in February 2024.
Schedule RR-I is a Kentucky Corporate Income Tax form. Like the Federal Form 1040, states each provide a core tax return form on which most high-level income and tax calculations are performed. While some taxpayers with simple returns can complete their entire tax return on this single form, in most cases various other additional schedules and forms must be completed, depending on the taxpayer's individual situation, to create a complete income tax return package.
About the Corporate Income Tax
The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.
Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).
Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.
Historical Past-Year Versions of Kentucky Schedule RR-I
We have a total of eleven past-year versions of Schedule RR-I in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
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