Kentucky Tracking Schedule for a KREDA Project

Tracking Schedule for a KREDA Project
10_41A720-S17 (KREDA-T)(0001).indd
SCHEDULE KREDA-T

*1000020253*

41A720-S17 (10-10)
Commonwealth of Kentucky
DEPARTMENT OF REVENUE

TRACKING SCHEDULE
FOR A KREDA PROJECT

➤ See instructions.
➤ Attach to Schedule KREDA or KREDA-SP.

KRS 154.22-010 to 102

Name of Entity

Entity Type

Corporation
Limited Liability Pass-through Entity
General Partnership
Other

______________________

Location of Project

Federal Identification Number

Kentucky Corporation/LLET
Account Number

__ __ — __ __ __ __ __ __ __

__ __ __ __ __ __

Activation Date of KREDA
Incentive Agreement

Economic Development
Project Number

__/__/__
City

Mo.

County

Day

Yr.

A

B

C*

D

E

F

Taxable
Year
Ended

Excess
Debt Service
Payment/Approved Costs
(Col. E – Col. F
from Prior Year)

Debt
Service Payment
or
Approved Costs

Employee Wage
Assessments
Withheld

KREDA
Credit Limitation
(Col. B + C – D)

KREDA Tax
Credit Claimed

–

=

+

–

=

+

–

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+

–

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–

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–

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–

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–

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–

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–

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–

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–

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–

=

+

–

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+

–

=

+

–

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+

–

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+

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* Debt Service Payment refers to KREDA projects subject to the provisions of KRS 154.22-010 to 154.22-100 in effect prior to July 15, 2002.
Approved Costs refers to KREDA projects subject to the provisions of KRS 154.22-010 to 154.22-102 in effect after July 14, 2002.

41A720-S17 (10-10)

Page 2

Commonwealth of Kentucky
DEPARTMENT OF REVENUE

INSTRUCTIONS—SCHEDULE KREDA-T

PURPOSE OF SCHEDULE—This schedule is used
by a company which has entered into a financing
agreement or tax incentive agreement for a Kentucky
Rural Economic Development Act (KREDA) project
to maintain a record of the debt service payments
or approved costs, whichever is applicable, wage
assessments and tax credits (income tax and limited
liability entity tax (LLET)) for the duration of the
agreement. This information is necessary for the
company to determine the limitation of the tax credit for
each year of the agreement and to allow the Kentucky
Department of Revenue to verify that the credit has
been properly computed.
GENERAL INSTRUCTIONS
The 2002 General Assembly amended KRS 154.22010 to 154.22-100, effective on July 15, 2002. Projects
that received preliminary approval from the Kentucky
Economic Development Finance Authority (KEDFA)
prior to July 15, 2002, and have entered into a financing
agreement no later than June 30, 2003, shall be subject
to KRS 154.22-010 to 154.22-100 as in effect prior to
July 15, 2002.
A separate Schedule KREDA-T, Tracking Schedule
for a KREDA Project, shall be maintained for the
duration of each KREDA project. Beginning with the
first tax year of the KREDA financing agreement or tax
incentive agreement, complete Columns A through F
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
KREDA or Schedule KREDA-SP which is filed with the
Kentucky tax return for the year.
For Form 720, all tax credits are entered on Schedule
TCS, a tax credit summary. 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.
Activation Date of KREDA Incentive Agreement—For
projects which received preliminary approval from
the Kentuck y Economic Development Finance
Authority (KEDFA) prior to July 15, 1996, enter the

date the financing agreement was executed. For
projects which received preliminary approval from
KEDFA after July 15, 1996, enter the date established
by the approved company as the activation date for
implementation of the inducements authorized by the
financing agreement.
SPECIFIC INSTRUCTIONS
Column A—Enter on each line the ending date (month,
day and year) of the tax year for which the information
requested in Columns B through F is entered.
Column B—This column will always be blank for the
first taxable year of the agreement. For each year
thereafter, if the amount entered in Column E for the
prior year exceeds the amount entered in Column F
for the prior year, enter the difference. If the amount
entered in Column F for the prior year equals the
amount entered in Column E for the prior year, enter
zero (-0-).
Column C—Enter the total amount of debt service
payment or approved costs, whichever is applicable
in accordance with the agreement, for the taxable
year. Debt service payment includes both principal
and interest paid in accordance with the financing
agreement.
Column D—Enter the total amount of employee wage
assessments (both the state and local portion) withheld
from the salaries of employees during the taxable
year.
Column E—Enter the result of adding the amounts
entered in Columns B and C and subtracting the
amount entered in Column D. Also, enter on Schedule
KREDA, Part III, Line 2 or Schedule KREDA-SP, Part I,
Line 8, whichever is applicable.
Column F—The KREDA 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.