Kentucky Unemployment Tax Credit

Unemployment Tax Credit
Schedule UTC
SCHEDULE

UTC

2023

UNEMPLOYMENT TAX CREDIT

Commonwealth of Kentucky
Department of Revenue

 See instructions.

KRS 141.065

 Attach to Form 720, 720U, PTE, 725, 740, 740-NP, or 741.
Name of Entity			

Social Security Number

__ __ __ – __ __ – __ __ __ __

Street Address		

Apt. Number	

City	

State	

ZIP Code	

Federal Identification Number

__ __– __ __ __ __ __ __ __
Kentucky Corporation/LLET Account Number

__ __ __ __ __ __

PERSONS EMPLOYED
Enter below the name(s), Social Security number(s), and Office of Employment and Training Certificate number(s) of employee(s) for
whom you are claiming a credit and enter the date employed and the last date the employee was on your payroll during the tax year.

Employee’s Name

Social Security Number

Office of
Employment
and Training
Certificate Number

Employment Dates
Date
Employed
Mo.

Day

Yr.

Date Employed
Through
Mo.

 1
 2
 3
 4
 5
 6
 7
 8
 9
10
11
12
13
14
15
16
17
18
19
20
21
22
23

24	 Enter total number of employees listed above........................................................................................... 	24

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Day

Yr.

Schedule UTC
(2023)

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PERSONS EMPLOYED—continued

25	 Enter total number of employees listed on line 24..................................................................................	25
26	 Unemployment tax credit (multiply line 25 by $100)...............................................................................	26
27	 Form 720 or 720U—Enter on Schedule TCS, Part II, Columns E and F................................................	27
28	 Form PTE—Enter on Schedule TCS, Part II, Column E and on PTE, Schedule K. General
Partnerships only enter on Form PTE, Schedule K...........................................................................	28
29	 Form 725—Enter on Schedule TCS, Part II, Column E..........................................................................	29
30	 Form 740—Enter on Schedule ITC, Section A, Line 7...........................................................................	30
31	 Form 740-NP—Enter on Schedule ITC, Section A, Line 7.....................................................................	31
32	 Form 741—Enter on Form 741, Line 18.................................................................................................	32

INSTRUCTIONS FOR SCHEDULE UTC
KRS 141.065(2) provides a tax credit for a taxpayer against the taxes imposed by KRS 141.020 or 141.040 and 141.0401 in an
amount equal to one hundred dollars ($100) for each person hired by the taxpayer. The person(s) must have been classified as
unemployed by the Education and Workforce Development Cabinet, Department of Workforce Investment, Office of Development
and Training for at least sixty (60) days prior to employment by the taxpayer. The person(s) must remain employed by the
taxpayer for at least one hundred eighty (180) consecutive days during the taxable year in which the credit is claimed. This
credit is subject to the ordering of credits per KRS 141.0205.
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. 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 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.

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