Form 765-Gp - Kentucky General Partnership Income Return

136.120 that serves a corporation that owns fossil energy

(ii) For a taxpayer’s residence or single–family residential rental

unit, 30% of the installed cost of an active solar space–heating

resources subject to tax under KRS 143.020 or 143A.020 or

biomass resources shall be entitled to a nonrefundable tax

system, passive solar space–heating system, combined active

solar space–heating and water–heating system, solar water–

credit against taxes imposed under KRS 141.040 and 141.0401

heating system, and wind turbine or wind machine, or $3 per

equal to twenty-five percent (25%) of the expenditures paid or

watt of direct current of a solar photovoltaic system. The total

incurred by the corporation or railway company to expand or

credit is limited to $500.

upgrade railroad track, including roadbeds, bridges, and related

track structures, to accommodate the transport of fossil energy

(iii) For a multifamily residential rental unit or commercial

resources or biomass resources.

property, 30% of the installed cost of an active solar space–

heating system, passive solar space–heating system, combined

The credit amount approved for a calendar year for all

taxpayers under KRS 141.386 shall be limited to $1 million.

active solar space–heating and water–heating system, solar

water–heating system, and wind turbine or wind machine, or

If the total amount of approved credit exceeds $1 million,

$3 per watt of direct current of a solar photovoltaic system.

the department shall determine the amount of credit each

The total credit is limited to $1,000.

corporation and railroad company receives by multiplying $1

million by a fraction, the numerator of which is the amount

of approved credit for a corporation or railway company and

(iv) For commercial property, 30% of the installed cost of

an energy–efficient interior lighting system that meets the

the denominator of which is the total approved credit for all

corporations and railway companies.

maximum reduction in lighting power density requirements

for the federal energy–efficient commercial building deduction

Each corporation or railway company eligible for the credit

under 26 U.S.C. § 179D, as it existed on December 31, 2007. The

total credit is limited to $500.

provided under this section shall file a railroad expansion

tax credit claim on forms prescribed by the department by

(v) For commercial property, 30% of the installed cost of an

the fifteenth day of the first month following the close of the

energy–efficient heating, cooling, ventilation, or hot water

preceding calendar year. The department shall determine the

amount of the approved credit and issue a credit certificate

system that meets the requirements for the federal energy–

efficient commercial building deduction under 26 U.S.C. § 179D,

to the corporation or railway company by the fifteenth day of

the third month following the close of the calendar year. KRS

as it existed on December 31, 2007. The total credit is limited

to $500. KRS 141.436

141.386

ENERGY STAR Home or ENERGY STAR Manufactured Home

ENDOW Kentuc k y Tax Cre dit—A taxpayer making an

endowment gift to a permanent endowment fund of a qualified

Tax Credit—A nonrefundable tax credit against the tax imposed

under KRS 141.040, and KRS 141.0401 is allowed if a taxpayer

community foundation, or county-specific component fund,

builds a new ENERGY STAR home located in the Commonwealth

or affiliate community foundation, which has been certified

under KRS 147A.325, is entitled to a tax credit equal to twenty

for use as a principal place of residence, or sells a new ENERGY

STAR manufactured home to a buyer who uses that home as

percent (20%) of the endowment gift, not to exceed $10,000.

The nonrefundable tax credit is allowed against the taxes

a principal place of residence in the Commonwealth. The tax

credit shall equal: (a) $800 if the taxpayer builds an ENERGY

imposed by KRS 141.020 or 141.040 and KRS 141.0401 and if

not use in the year the tax credit is awarded may be carried

STAR home; or (b) $400 if the taxpayer sells an ENERGY STAR

manufactured home. The tax credit shall not apply if the tax

forward for a period not to exceed five years. The department

shall issue a credit certification (Schedule ENDOW) to a

credit has been previously taken by another taxpayer on the

same ENERGY STAR home or ENERGY STAR manufactured

taxpayer upon receiving proof that the endowment gift was

home, or the taxpayer has taken the energy efficiency products

made to the approved community foundation as provided by

tax credit. KRS 141.437

KRS 141.438(7). Schedule ENDOW must be attached to the

taxpayer’s tax return each year to claim the credit. A partner,

member or shareholder of a pass-through entity shall attach a

Railroad Maintenance and Improvement Tax Credit—For tax

years beginning on or after January 1, 2010, an owner of any

copy of Schedule K-1, Form 720S, 765 or 765-GP to the partner’s,

member’s or shareholder’s tax return each year to claim the

Class II railroad or Class III railroad located in Kentucky or

any person who transports property using the rail facilities

tax credit.

of a Class II railroad or Class III railroad located in Kentucky

or furnishes railroad-related property or services to a Class

New Markets Development Program Tax Credit—KRS 141.432

II railroad or Class III railroad located in Kentucky, but only

to 141.434 was created to encourage taxpayer investment in

with respect to miles of railroad track assigned to the person

qualified low-income communities. A taxpayer that makes

by a Class II railroad or Class III railroad, shall be entitled to a

a qualified equity investment as provided by KRS 141.432(7)

in a qualified community development entity as provided by

nonrefundable credit against taxes imposed by KRS 141.020 or

141.040 and KRS 141.0401 in an amount equal to fifty percent

KRS 141.432(6) shall be entitled to a nonrefundable tax credit

against the taxes imposed by KRS 141.020, 141.040, 141.0401,

(50%) of the qualified expenditures paid or incurred to maintain

or improve railroads located in Kentucky, including roadbeds,

136.320, 136.330, 136.340, 136.350, 137.370, 136.390 or 304.3-

270. The total amount of tax credits that may be awarded by

bridges, and related structures, that are owned or leased as of

January 1, 2008, by a Class II or Class III railroad.

the department shall be limited to $5 million. “Qualified low-

income community investment” means any capital or equity

The credit allowed shall not exceed the product of $3,500

investment in, or loan to, any qualified active low-income

multiplied by the sum of: (i) The number of miles of railroad

community business made after June 4, 2010. With respect to

any one qualified active low-income community business, the

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

maximum amount of qualified active low-income community

investments that may be made in the business, on a collective

railroad track in Kentucky assigned to the eligible taxpayer by

a Class II railroad or Class III railroad which owns or leases the

basis with all of its affiliates, with the proceeds of qualified

equity investments that have been certified under KRS 141.433

railroad track as of the close of the taxable year. KRS 141.385

shall be $10 million, whether made by one or several qualified

community development entities.

Railroad Expansion Tax Credit—For tax years beginning on or

after January 1, 2010: (a) a corporation that owns fossil energy

resources subject to tax under KRS 143.020 or 143A.020 or

The amount of the credit shall be equal to 39% of the purchase

price of the qualified equity investment made by the taxpayer.

biomass resources and transports these resources using rail

facilities; or (b) a railway company subject to tax under KRS

A taxpayer is allowed to claim zero percent (0%) for each of

Form 765-Gp - Kentucky General Partnership Income Return - 2012 Page 12

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