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Kentucky Qualified Research Facility Tax Credit - Form 41A720QR
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Extracted from PDF file 2023-kentucky-schedule-qr.pdf, last modified June 2023Qualified Research Facility Tax Credit - Form 41A720QR
SCHEDULE QR QUALIFIED RESEARCH FACILITY TAX CREDIT Commonwealth of Kentucky Department of Revenue 2023 See instructions. KRS 141.395 Attach to Form 720, 720U, PTE, 725, 740, 740-NP, or 741. Name of Entity Taxed as: Corporation Limited Liability Pass-through Entity General Partnership Individual Other _________________________________________ Location of Research Facility within Kentucky New Construction County Where Project is Located Federal Identification Number Kentucky Corporation/LLET Account Number (if applicable) Date of Completion __ __ /__ __ / __ __ __ __ Expansion PART I—Computation of Allowable Tax Credit 1 Cost of construction (attach schedule)...................................................................................... 1 00 2 Cost of equipment (attach schedule)........................................................................................ 2 00 3 Total qualified costs (add lines 1 and 2).................................................................................... 3 00 4 Allowable tax credit (enter 5% of line 3).................................................................................... 4 00 PART II—Current Year Credit 1 LLET Credit—Enter on Schedule TCS, Part II, Column E........................................................ 1 00 2 Corporation Income Tax Credit—Enter on Schedule TCS, Part II, Column F........................... 2 00 3 Individual Income Tax Credit—Enter on Form 740, 740-NP, or 741......................................... 3 00 PART III—Amount of Credit Claimed A B C Taxable Year Credit Taken Balance of Qualified Amount of Credit Used Research Facility Tax Credit (Month/Year) LLET Income Tax LLET Income Tax 1 __ __ / __ __ __ __ 00 00 00 00 2 __ __ / __ __ __ __ 00 00 00 00 3 __ __ / __ __ __ __ 00 00 00 00 4 __ __ / __ __ __ __ 00 00 00 00 5 __ __ / __ __ __ __ 00 00 00 00 6 __ __ / __ __ __ __ 00 00 00 00 7 __ __ / __ __ __ __ 00 00 00 00 8 9 __ __ / __ __ __ __ 00 00 00 00 __ __ / __ __ __ __ 00 00 00 00 10 __ __ / __ __ __ __ 00 00 00 00 11 __ __ / __ __ __ __ 00 00 00 00 230227 41A720QR (10-23) Page 1 of 2 Schedule QR (2023) INSTRUCTIONS—QUALIFIED RESEARCH FACILITY TAX CREDIT Page 2 of 2 The Qualified Research Facility Tax Credit is applied against the individual income tax imposed by KRS 141.020 or the corporation income tax imposed by KRS 141.040 and the limited liability entity tax (LLET) imposed by KRS 141.0401. The amount of credit claimed against the corporation income tax and the LLET can be different. The amount of credit claimed from Part I, Line 4 and the resulting balance of credit available must be calculated separately for income tax and the LLET. If the balance available for the income tax or the LLET reaches zero, no further credit is allowed against that tax liability. For example, any balance available for income tax cannot be used as a credit against the LLET nor can any balance available for the LLET be used as a credit against the income tax liability. For tax years beginning on or after January 1, 2007, Kentucky law permits a credit against the income tax liability and the LLET liability for the construction of research facilities. “Construction of research facilities” means constructing, remodeling and equipping facilities in this state or expanding existing facilities in this state for qualified research and includes only tangible, depreciable property, and does not include any amounts paid or incurred for replacement property. The credit is available once the tangible, depreciable property is placed in service. “Qualified research” means qualified research as defined in §41 of the Internal Revenue Code. Purpose of Schedule—This schedule is used by taxpayers to determine the credit against the income tax liability and the LLET liability allowed for completion of research facilities per KRS 141.395. It is also used to record the credit claimed each tax year. A copy must be submitted each year until the full credit is utilized or the 10-year carryforward period has expired. Complete a separate schedule each year that a new project qualifies. General Instructions—If the entity type is not listed, check the “Other” box and list the entity type. PART I—Computation of Allowable Tax Credit Line 1—Enter the cost of construction of qualified research facilities.* Line 2—Enter the cost of equipment. NOTE: Attach a schedule of the tangible, depreciable property included in Lines 1 and 2 listing the date purchased, date placed in service, description, and cost. Line 2—Corporation Income Tax Credit—Enter the amount of current year credit claimed against the corporation income tax. Line 3—Individual Income Tax Credit—Enter the amount of current year credit claimed against the individual income tax. A pass-through entity must include on each Schedule K-1 the partner’s, member’s, shareholder’s, or beneficiary’s pro rata share of the approved credit. PART III—Amount of Credit Claimed Column A—Enter the month and year the tax credit is taken for this project. Column B—Enter for year 1, the allowable credit from Part I, Line 4. Enter for each succeeding year, the difference between Column B and Column C for the LLET and income tax. Line 3—Enter the sum of Line 1 and Line 2. Note: The 2007 beginning balance of the Qualified Research Facility Tax Credit for LLET will be the same as the balance for income tax purposes. Line 4—Enter the amount of Line 3 multiplied by 5 percent (.05). Column C—Enter the amount of credit used for that year. If the amount is zero, enter -0-. PART II—Current Year Credit Line 1—LLET Credit—Enter the amount of current year credit claimed against the LLET. This credit cannot reduce the LLET below the $175 minimum. 41A720QR (10-23)
Schedule QR
More about the Kentucky Schedule QR Corporate Income Tax Tax Credit TY 2023
We last updated the Qualified Research Facility Tax Credit - Form 41A720QR in February 2024, so this is the latest version of Schedule QR, fully updated for tax year 2023. You can download or print current or past-year PDFs of Schedule QR directly from TaxFormFinder. You can print other Kentucky tax forms here.
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| Form Code | Form Name |
|---|---|
| Form PTE Instructions | Kentucky Pass-Through Entity Income and LLET Return - Instructions |
| Form 720S | Kentucky S Corporation Income Tax and LLET Return |
| Schedule A | Apportionment and Allocation for corporations and pass-through entities taxable both within and without Kentucky - Schedule 41A720A |
| Form 725 | Kentucky Single Member LLC Individually Owned & LLET Return |
| Form 92A205 | Inheritance Tax Return - Short Form |
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 QR from the Department of Revenue in February 2024.
Schedule QR 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 QR
We have a total of eleven past-year versions of Schedule QR 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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