Instructions For Forms 740 And 740-Ez - Kentucky Individual Income Tax Return - 2011 Page 16
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30annual ethanol tax credit cap by a fraction, the numerator
Line 20, Endow Kentucky Credit—Effective for taxable years
of which is the amount of approved credit for the ethanol
beginning on or after Jan. 1, 2011, the Endow Kentucky Tax
producer and the denominator of which is the total approved
Credit was created to encourage donations to community
credit for all ethanol producers. The credit allowed shall be
foundations across the Commonwealth. KRS 141.438 was
applied both to the income tax imposed under KRS 141.020
created to allow a nonrefundable income tax and limited
or 141.040 and to the limited liability entity tax imposed
liability entity tax credit of 20 percent of the value of the
under KRS 141.0401, with the ordering of credits as provided
endowment gift, not to exceed $10,000.
in KRS 141.0205. Any remaining ethanol credit shall be
disallowed and shall not be carried forward to the next year.
A taxpayer shall attach a copy of the approved Schedule
“Ethanol producer” is defined as an entity that uses corn,
ENDOW to the tax return each year to claim the tax credit
soybeans, or wheat to manufacture ethanol at a location in
against the taxes imposed by KRS 141.020 or 141.040 and
this Commonwealth.
141.0401.
Line 17, Cellulosic Ethanol Tax Credit—A cellulosic ethanol
A partner, member or shareholder of a pass–through entity
producer shall be eligible for a nonrefundable tax credit
shall attach a copy of Schedule K–1, Form 720S; Schedule K–1,
against the taxes imposed by KRS 141.020 or 141.040 and
Form 765; or Schedule K–1, Form 765–GP to the partner’s,
141.0401 in an amount certified by the department. The
member’s or shareholder’s tax return each year to claim the
credit rate shall be one dollar ($1) per cellulosic ethanol
tax credit.
gallon produced, unless the total amount of approved credit
for all cellulosic ethanol producers exceeds the annual
Unused credit may be carried forward for use in a subsequent
cellulosic ethanol tax credit cap. If the total amount of
taxable year, for a period not to exceed five years.
approved credit for all cellulosic ethanol producers exceeds
the annual cellulosic ethanol tax credit cap, the department
shall determine the amount of credit each cellulosic ethanol
producer receives by multiplying the annual cellulosic
ethanol tax credit cap by a fraction, the numerator of which
is the amount of approved credit for the cellulosic ethanol
producer and the denominator of which is the total approved
credit for all cellulosic ethanol producers. The credit allowed
shall be applied both to the income tax imposed under
KRS 141.020 or 141.040 and to the limited liability entity tax
imposed under KRS 141.0401, with the ordering of credits as
provided in KRS 141.0205. Any remaining cellulosic ethanol
credit shall be disallowed and shall not be carried forward to
the next year. “Cellulosic ethanol producer” is defined as an
entity that uses cellulosic biomass materials to manufacture
cellulosic ethanol at a location in this Commonwealth.
Line 18, Energy Efficiency Products Tax Credits—This
nonrefundable credit is available to taxpayers who install
energy efficiency products for residential and commercial
property located in Kentucky as provided by KRS 141.436
for taxable years beginning after December 31, 2008, and
before January 1, 2016.
Complete Form 5695-K, Kentucky Energy Efficiency Products
Tax Credit, to see if you meet the qualifications for this
credit.
Individuals or businesses can apply the credit against their
state income tax liability and carry the credit forward for
one (1) year if the credit cannot be taken in full in the year
in which the installation is completed.
Line 19, Railroad Maintenance and Improvement Credit—The
railroad maintenance and improvement credit provided by
KRS 141.385 is a nonrefundable credit that can be applied
against the taxes imposed by KRS 141.020, KRS 141.040 and
KRS 141.0401. The tax credit shall be used in the tax year of
the qualified expenditures which generated the tax credit and
cannot be carried forward to a return for any other period.
An eligible taxpayer means the owner of a Class II or Class III
railroad located in Kentucky, the transporter of property using
the rail facilities of a Class II or III railroad in Kentucky, or any
person that furnishes railroad-related property or services to
a Class II or Class III railroad located in Kentucky. A copy of
Schedule RR-I must be attached to your return.
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