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Kentucky Tax Credit Computation Schedule
Schedule KREDA is obsolete, and is no longer supported by the Kentucky Department of Revenue.
Extracted from PDF file 2020-kentucky-schedule-kreda.pdf, last modified December 2008Tax Credit Computation Schedule
SCHEDULE KREDA For taxable year ended *0800020252* 41A720-S16 (10-08) Commonwealth of Kentucky DEPARTMENT OF REVENUE __ __ / __ __ Mo. Yr. TAX CREDIT COMPUTATION SCHEDULE (FOR A KREDA PROJECT OF CORPORATIONS) KRS 154.22-010 to 100 ➤ Attach this schedule to Form 720. Name of Corporation Federal Identification Number __ __ — __ __ __ __ __ __ __ Location of Project City Date KREDA Financing/Tax Incentive Agreement was Executed or Activation Date County Mo. / / Day Kentucky Corporation/LLET Account Number __ __ __ __ __ __ Economic Development Project Number Yr. PART I—Computation of LLET Excluding KREDA Project 1. LLET from Form 720, Part I, line 1........................................................................................................... 1 2. LLET on KREDA project (see instructions)............................................................................................. 2 3. LLET excluding LLET on KREDA project (line 1 less line 2).................................................................. 3 PART II—Computation of Taxable Net Income Excluding Net Income from KREDA Project and KREDA Tax Credit Section A–Computation of Corporation Tax 1. Enter income tax from Form 720, Part III, line 1..................................................................................... 1 2. LLET of corporation (Part I, line 1)........................................................................................................... 2 3. LLET credit allowed (line 2 less $175, but not more than Section A, line 1)........................................ 3 4. Total corporation tax (add lines 1 and 2 less line 3).............................................................................. 4 Section B–Computation of Tax Excluding KREDA Project 1. Enter taxable net income from Form 720, Part II, line 23...................................................................... 1 2. Enter net income from KREDA project, if loss enter -0-........................................................................ 2 3. Taxable income excluding net income from KREDA project (line 1 less line 2). If line 2 is greater than line 1, enter -0-................................................................................................................................. 3 4. Corporation income tax on amount of line 3: Taxable Net Income Rate Tax (a) First $50,000........................ ______________________________ X 4% ________________________ (b) Next $50,000........................ ______________________________ X 5% ________________________ (c) All income over $100,000.... ______________________________ X 6% ________________________ (d) Total income tax liability excluding KREDA project (add lines 4(a) through 4(c))........................ 4(d) 5. LLET excluding LLET on KREDA project (Part I, Line 3)........................................................................ 6. Enter LLET from line 5 less $175, but not more than Section B, line 4(d)........................................... 7. Total tax excluding KREDA project (add lines 4(d) and 5 less line 6)................................................... 8. Total tax attributable to KREDA project (Section A, line 4 less Section B, line 7) Continue to Part III and enter this amount on Part III, line 1................................................................. PART III—Limitation 5 6 7 8 1. Enter tax liability attributable to KREDA project from Part II, Section B, line 8................................... 1 2. Enter limitation from Schedule KREDA -T, Column E............................................................................ 2 3. Allowable KREDA tax credit (lesser of line 1 or line 2).......................................................................... 3 Enter allowable credit on Schedule TCS, Part I, Column E and Column F ➤ Economic development project means a project authorized under the Kentucky Industrial Development Act (KIDA), the Kentucky Rural Economic Development Act (KREDA), the Kentucky Jobs Development Act (KJDA), the Kentucky Industrial Revitalization Act (KIRA), the Kentucky Economic Opportunity Zone (KEOZ), the Kentucky Reinvestment Act (KRA), the Kentucky Job Retention Act (KJRA) or the Skills Training Investment Credit Act (STICA). The Kentucky Corporation Income Tax and LLET Return (Form 720), including this schedule must be mailed to Economic Development Tax Credits, Corporation Income and License Tax Branch, Kentucky Department of Revenue, P.O. Box 181, Frankfort, Kentucky 40602-0181. 41A720-S16 (10-08) Commonwealth of Kentucky DEPARTMENT OF REVENUE INSTRUCTIONS—SCHEDULE KREDA Page 2 The KREDA tax credit is applied against the corporation income tax imposed under KRS 141.040 and/or the limited liability entity tax (LLET) imposed under KRS 141.0401. The amount of tax credit against each tax can be different, however, for tracking purposes, the maximum amount of credit used against either tax is the amount that is used for the tax year. PURPOSE OF SCHEDULE—This schedule is used by any corporation which has entered into a financing agreement or a tax incentive agreement for a Kentucky Rural Economic Development Act (KREDA) project to determine the credit allowed against the Kentucky corporation income tax and LLET attributable to the project in accordance with KRS 141.347. Alternative Methods—In accordance with KRS 141.347(8), if the approved company can show that the nature of the operations and activities of the approved company are such that it is not practical to use separate accounting to determine net income, gross receipts or Kentucky gross profits from the facility at which the project is located, the approved company shall determine net income, gross receipts or Kentucky gross profits attributable to the project using an alternative method approved by the Department of Revenue. Thus, if any method other than separate accounting is used, a copy of the letter from the Department of Revenue approving the alternative method must be attached to this schedule. GENERAL INSTRUCTIONS Part I—Computation of LLET Excluding KREDA Project Line 2—Using Schedule LLET, compute the LLET using only the gross receipts and gross profits of the KREDA project. Mark this schedule as KREDA and attach to the return. If the corporation has operations other than the KREDA project, it must attach schedules reflecting the computation of Kentucky gross profits and Kentucky gross receipts from the KREDA project in accordance with KRS 141.347(6)(b)** or KRS 141.347(7)(b).**** Part II—Computation of Taxable Net Income Excluding Net Income from KREDA Project and KREDA Tax Credit Section B Line 2—Enter net income for KREDA project. If the corporation’s only operation in Kentucky is the KREDA project, the amount entered on Line 1 must be entered on Line 2. If the corporation has operations other than the KREDA project, it must attach schedules reflecting the computation of the net income from the KREDA project in accordance with KRS 141.347(6)(a)* or KRS 141.347(7) (a).*** See form for computation. Part III—Limitation Calculate KREDA tax credit based on the corporation’s tax liability, tax liability attributable to KREDA project, and credit limitation from Schedule KREDA -T. Enter credit on Schedule TCS, Part I, Column E and Column F. A corporation with more than one economic development project must separately compute the tax credit derived from each project. Complete an applicable tax computation schedule (Schedule KREDA, Schedule KIDA, Schedule KJDA, Schedule KIRA, Schedule KEOZ, Schedule KRA or Schedule KJRA) for each project. Approved companies for Skills Training Investment Credit (STICA) must attach a copy of the final resolution received from the Bluegrass State Skills Corporation. * In accordance with KRS 141.347(6)(a), if the project is a totally separate facility, net income attributable to the project shall be determined by the separate accounting method. ** In accordance with KRS 141.347(6)(b), if the project is a totally separate facility, gross receipts or Kentucky gross profits attributable to the project shall be determined under the separate accounting method reflecting only the gross receipts or Kentucky gross profits directly attributable to the facility. *** In accordance with KRS 141.347(7)(a), if the KREDA project is an expansion to a previously existing facility, net income attributable to the entire facility shall be determined under the separate accounting method and the net income attributable to the KREDA project shall be determined by apportioning the separate accounting net income of the entire facility to the KREDA project income using a formula approved by the Department of Revenue. A copy of the letter from the Department of Revenue approving the percentage must be attached to this schedule. **** In accordance with KRS 141.347(7)(b), if the KREDA project is an expansion to a previously existing facility, gross receipts or Kentucky gross profits attributable to the entire facility shall be determined under the separate accounting method and the gross receipts or Kentucky gross profits attributable to the KREDA project shall be determined by apportioning the separate accounting gross receipts or Kentucky gross profits of the entire facility to the KREDA project gross receipts or Kentucky gross profits. A copy of the letter from the Department of Revenue approving the percentage must be attached to this schedule.
Schedule KREDA
More about the Kentucky Schedule KREDA Corporate Income Tax Tax Credit
We last updated the Tax Credit Computation Schedule in August 2021, and the latest form we have available is for tax year 2020. This means that we don't yet have the updated form for the current tax year. Please check this page regularly, as we will post the updated form as soon as it is released by the Kentucky Department of Revenue. You can print other Kentucky tax forms here.
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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 KREDA.
| Form Code | Form Name |
|---|---|
| Schedule KREDA-T | Tracking Schedule for a KREDA Project |
| Schedule KREDA Packet | Kentucky Rural Economic Development Act (KREDA) Tax Credit Packet (OBSOLETE) |
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 KREDA from the Department of Revenue in August 2021.
Schedule KREDA is a Kentucky Corporate Income Tax form. States often have dozens of even hundreds of various tax credits, which, unlike deductions, provide a dollar-for-dollar reduction of tax liability. Some common tax credits apply to many taxpayers, while others only apply to extremely specific situations. In most cases, you will have to provide evidence to show that you are eligible for the tax credit, and calculate the amount of the credit to which you are entitled.
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 KREDA
We have a total of seven past-year versions of Schedule KREDA 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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