Kentucky Application for Coal Incentive Tax Credit

Application for Coal Incentive Tax Credit
Schedule CI
Schedule CI

*1600010221*

41A720CI (10–16)

Commonwealth of Kentucky
DEPARTMENT OF REVENUE

Taxable Year Ending

__ __ / __ __

	

Mo.	Yr.

APPLICATION FOR COAL INCENTIVE TAX CREDIT
KRS 141.0405

➤  See instructions.
➤  For Coal Purchased During Calendar Year
Name of Entity	

Federal Identification Number

  __ __ __ __ __ __ __ __ __

	
Number and Street	
	
City	

Kentucky Corporation/LLET Account Number

  __ __ __ __ __ __
State	

Type of Entity (check applicable box) :	
		

Corporation 	
Other ➤

ZIP Code	

Telephone Number (Include Area Code)

Limited Liability Pass-through Entity	

General Partnership	

Kentucky Group Notice Code (GNC) Number  __ __ __ __ __ __

PART I—Qualifying Tons of Coal Purchased During the Base Year (Calendar Year 1999)
		A	

B	

Name and Kentucky Coal Severance Tax Account
		
Number of Taxpayer Subject to Kentucky
Name of Supplier
							
Tax On Qualifying Coal Purchases
					 Coal Severance
					

C	
Qualifying Tons of
Coal Purchased

D

For Department of
Revenue Use Only
Approved Tons Purchased

  1.
 2.
  3.
 4.
 5.
 6.
 7.
 8.
 9.
10.
11.	 Total Approved Tons for the Base Year ..............................................................................................................
PART II—Qualifying Tons of Coal Purchased During the Current Calendar Year
	
A	
B	
C	D
Name of Supplier

Name and Kentucky Coal Severance Tax Account
Number of Taxpayer Subject to Kentucky
Coal Severance Tax On Qualifying Coal Purchases

Qualifying Tons of
Coal Purchased

For Department of
Revenue Use Only
Approved Tons Purchased

 1.
 2.
 3.
 4.
 5.
 6.
 7.
 8.
 9.
10.
11.	 Total Approved Tons for the Current Calendar Year...........................................................................................
I, the undersigned, declare under the penalties of perjury, that I have examined this application, including all accompanying schedules and statements,
and to the best of my knowledge and belief, it is true, correct and complete.

	

Signature of Principal Officer or Chief Accounting Officer	

	

Type or Print Name and Title of Principal Officer or Chief Accounting Officer

Date

	

41A720CI (10–16)

Commonwealth of Kentucky
DEPARTMENT OF REVENUE

INSTRUCTIONS FOR SCHEDULE CI

Page 2

The Coal Incentive Tax Credit is applied against the individual income tax imposed by KRS 141.020, the corporation income tax imposed by
KRS 141.040, the limited liability entity tax (LLET) imposed by KRS 141.0401 and the public service corporation property tax (state portion
only) imposed by KRS 136.120. The amount of credit claimed against the corporation income tax and the LLET can be different.
Purpose of Schedule—This schedule is used by taxpayers to apply
for the coal incentive tax credit provided by KRS 141.0405 and
by the Department of Revenue to determine the approved tons
of coal purchased.
Who is Entitled to the Tax Credit —A taxpayer or a parent
company if the taxpayer is a wholly owned subsidiary that:
(a)  is an alternative fuel facility as defined in KRS 154.27–010 or a
gasification facility as defined in KRS 154.27–010 that has not been
approved for incentives under Subchapter 27 of KRS Chapter 154;
(b)  remits tax to the Commonwealth under KRS 136.120, 141.020,
141.040 or 141.0401; and
(c) purchases coal subject to the tax imposed by KRS 143.020
that is used as feedstock for an alternative fuel facility as defined
in KRS 154.27–010 or a gasification facility as defined in KRS
154.27–010.
Amount of Credit—The credit is equal to $2 for each incentive
ton of coal. Incentive tons of coal are calculated by subtracting
the tons of qualifying coal purchased during the base year from
the tons of qualifying coal purchased during the prior calendar
year. “Qualifying coal” means coal subject to the coal severance
tax imposed by KRS 143.020 which is purchased and used as a
feedstock for an alternative fuel facility or a gasification facility
as defined in KRS 154.27–010. For entities existing prior to July
14, 2000, the base year amount of qualifying tons of coal is the
qualifying tons of coal purchased in the calendar year 1999. For
entities that come into existence after July 14, 2000, the base year
amount shall be equal to zero.
Due Date of Schedule—The taxpayer must submit this schedule
by March 15 of each year to apply for the credit on coal purchases
for the prior calendar year.
Where to Submit Schedule—This schedule should be submitted to:
	
	
	
	
	

Kentucky Department of Revenue
Office of Property Valuation
Division of Minerals Taxation and GIS Services
501 High Street, Station 33
Frankfort, Kentucky 40601-2103

SPECIFIC INSTRUCTIONS
General Information—The taxpayer must complete all information
in the name and address portion of this schedule. If the entity type
is not listed, check “Other” and list the entity type.
Part I—Qualifying Tons of Coal Purchased During the Base Year
(Calendar Year 1999)
Company that Came into Existence after July 14, 2000—If
the company came into existence after July 14, 2000, enter a
statement to that effect in Columns A and B, and enter zero ($0.00)
in Column C. Attach sufficient information to the application to
verify the date the company came into existence. A company
created on or before July 14, 2000, cannot create an affiliate,
subsidiary or another corporation that would qualify for a base
year amount of zero ($0.00).
Company in Existence on July 14, 2000—If the company was
in existence on or before July 14, 2000, enter in Column A the
name of each supplier from whom the coal was purchased. If
the supplier listed in Column A is the person subject to the coal
severance tax on the qualifying coal, enter the supplier’s Kentucky
Coal Severance Tax Account Number in Column B and the tons
of qualifying coal purchased in Column C. If the person subject
to the Kentucky coal severance tax on the qualifying coal is not
the supplier listed in Column A, enter in Column B the name and

Kentucky Coal Severance Tax Account Number of the person
subject to the coal severance tax and the tons of qualifying coal
purchased in Column C. If more than one person was subject
to the Kentucky coal severance tax on coal purchased from a
single supplier, use a separate line for each person subject to
the Kentucky coal severance tax and list the supplier in Column
A, the name and Kentucky Coal Severance Tax Account Number
of the person subject to the coal severance tax in Column B, and
the tons of qualifying coal purchased in Column C.
Part II—Qualifying Tons of Coal Purchased During the Current
Calendar Year
Company Filing Schedule—Enter in Column A the name of each
supplier from whom the coal was purchased. If the supplier listed
in Column A is the person subject to the coal severance tax on
the qualifying coal, enter the supplier’s Kentucky Coal Severance
Tax Account Number in Column B and the tons of qualifying coal
purchased in Column C. If the person subject to the Kentucky
coal severance tax on the qualifying coal is not the supplier
listed in Column A, enter in Column B the name and Kentucky
Coal Severance Tax Account Number of the person subject to the
coal severance tax and the tons of qualifying coal purchased in
Column C. If more than one person was subject to the Kentucky
coal severance tax on coal purchased from a single supplier,
use a separate line for each person subject to the Kentucky coal
severance tax and list the supplier in Column A, the name and
Kentucky Coal Severance Tax Account Number of the person
subject to the coal severance tax in Column B, and the tons of
qualifying coal purchased in Column C.
Subsequent Year Applications—For applications submitted
for years after the taxpayer’s initial year of application, it is not
necessary to complete Part I. In lieu of completing Part I the
taxpayer should attach a copy of the initial year’s application
which will be returned to the taxpayer with Column D completed
by the Department of Revenue with the Coal Incentive Tax Credit
Certificate for the initial year.
Maintaining Records—The taxpayer must maintain records
reflecting verification of the tons of coal purchased subject to
Kentucky coal severance tax imposed by KRS 143.020, including
invoices and proof of payments, for a period of five years.
Taxes to which the Credit Applies—KRS 141.0405 provides that
this credit shall first be applied against both the taxes imposed by
KRS 141.020 or KRS 141.040 and the tax imposed by KRS 141.0401,
with the ordering of credits as provided in KRS 141.0205. Any
remaining credit shall be applied against the taxes imposed by
KRS 136.120.
The credit shall meet the entirety of the taxpayer’s liability under
the first tax listed in consecutive order before applying any
remaining credit to the next tax listed in consecutive order. The
taxpayer’s total liability under each preceding tax must be fully
met before the remaining credit can be applied to the subsequent
tax listed in consecutive order.
Claiming Credit—Corporations and limited liability pass–through
entities are entitled to take this credit against the LLET. The credit
taken against corporation income tax is also allowed against the
LLET even though the credit is taken against the income tax. The
credit claimed may be different because of limitations.
The credit amount cannot reduce the LLET below the $175
minimum.
A pass-through entity shall include on each Schedule K-1 the
partner’s, member’s or shareholder’s pro rata share of the
approved credit.