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Kentucky Free Printable 41A720-S24.p65 for 2021 Kentucky Tax Credit Computation Schedule for a KIRA Project of a Corporation

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Tax Credit Computation Schedule for a KIRA Project of a Corporation
41A720-S24.p65

SCHEDULE KIRA For taxable year ended 41A720-S24 (12-04) TAX CREDIT COMPUTATION SCHEDULE Commonwealth of Kentucky DEPARTMENT OF REVENUE (FOR A KIRA PROJECT OF C CORPORATIONS) __ __ / __ __ Mo. Yr. KRS 154.26-010 to 120 Name of Corporation Location of Project City Federal Identification Number Kentucky Account Number __—_______ ______ Date KIRA Revitalization Agreement was Executed Economic Development Project Number __/__/__ County Mo. Day Yr. PART I. Computation of Taxable Net Income Excluding Net Income from KIRA Project 1. Kentucky taxable net income from Form 720 ....................................................................................... 1 2. Less net income from KIRA project. If loss, enter amount of loss. Skip to Part II, line 5, and enter -0- as allowable credit (see instructions) (attach schedule) ....................................................... 2 3. Kentucky taxable net income excluding net income from KIRA project (line 1 less line 2) (if line 2 is greater than line 1, enter -0-) ................................................................................................ 3 PART II. Computation of KIRA Income Tax Credit 1. Enter total income tax liability from Form 720, Part II, line 1 ............................................................... 1 2. Compute tax on amount from Part I, line 3: Taxable Net Income Rate x x x x x Tax (a) (b) (c) (d) (e) First $25,000 ..................... Next $25,000 .................... Next $50,000 .................... Next $150,000 .................. All over $250,000 ............. 4% 5% 6% 7% 8.25% (f) Total (add (a) through (e)) ............................................................................................................ 2(f) 3. Income tax liability attributable to KIRA project (subtract line 2(f) from line 1) ................................. 3 4. Limitation (Column D from Schedule KIRA-T) ...................................................................................... 4 5. Allowable KIRA tax credit (lesser of line 3 or line 4). If this project is the corporation's only economic development project, enter the amount from this line on Form 720, Part II, line 2, and in Column E of Schedule KIRA-T. If the corporation has more than one economic development project, see instructions for Part II, line 5, on the reverse ............................................ 5 ➤ 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) or the Skills Training Investment Credit Act (STICA) . Form 720, Kentucky Corporation Income and License Tax Return, 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. INSTRUCTIONS—SCHEDULE KIRA PURPOSE OF SCHEDULE—This schedule is to be used by any corporation which has entered into a revitalization agreement for a Kentucky Industrial Revitalization Act (KIRA) project to determine the KIRA income tax credit allowed against the Kentucky corporation income tax liability in accordance with KRS 141.403 on the income from the project. accounting, gross income directly attributable to the facility shall be reduced by expenses directly attributable to the facility and overhead expenses apportioned to the facility. The amounts of gross receipts and expenses to be included in this separate accounting computation should be determined in accordance with KRS 141.010 in effect for the year. GENERAL INSTRUCTIONS All gross receipts generated by the sale of product(s) produced by the facility as well as any miscellaneous income generated by the facility shall be included as gross income directly attributable to the facility. The corporation must first complete Form 720, Kentucky Corporation Income and License Tax Return, and all appropriate schedules through Part II, line 1, to determine Kentucky taxable net income and tax due from the entire operations of the corporation. The corporation must then complete Schedule KIRA to determine the KIRA income tax credit. License Tax—The corporation must complete Schedule KIRA-L to determine the KIRA license tax credit. PART I, LINE 2 INSTRUCTIONS If the corporation's only operation is the KIRA project, the amount entered on line 1 must be entered on line 2. If the corporation has operations other than the KIRA project, the corporation must attach schedules reflecting the computation of the net income from the KIRA project in accordance with the following instructions and enter such amount on line 2. Separate Facility—In accordance with KRS 141.403(6), if the project is a totally separate facility, net income attributable to the project shall be determined by the separate accounting method. Alternative Methods—In accordance with KRS 141.403(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 from the facility at which the project is located, the approved company shall determine net income attributable to the project using an alternative method approved by the Kentucky Department of Revenue. Thus, if any method other than separate accounting is used to determine the net income from the project, a copy of the letter from the Department of Revenue approving the alternative method must be attached to this schedule. Computing Net Income by Separate Accounting—To compute net income from the facility by separate Expenses directly attributable to the facility include, but are not limited to: cost of goods sold, labor, rent, depreciation, interest, supplies, maintenance, legal fees and selling expenses. Overhead expenses apportioned to the facility are general corporate expenses that are not directly attributable to a specific facility. Overhead expenses shall be reduced by income items such as interest, royalties, etc., that are not directly attributable to a specific facility before being apportioned to the facility. The net expenses shall be apportioned to the facility by a ratio of total receipts of the facility over total receipts of the corporation. PART II, LINE 5 INSTRUCTIONS A corporation with more than one economic development project must separately compute the income tax credit derived from each project. Complete an applicable tax computation schedule (Schedule KREDA, Schedule KIDA, Schedule KJDA, Schedule KIRA or Schedule KRA) for each project. Approved companies claiming income tax credits for Skills Training Investment (STICA) must attach a copy of the final resolution received from the Bluegrass State Skills Corporation. Add the allowable credits from all projects. If the total allowable credits from all projects does not exceed the income tax liability reflected on Form 720, Part II, line 1, for the taxable year, enter the total on Form 720, Part II, line 2. If the total allowable credits from all projects exceeds the income tax liability reflected on Form 720, Part II, line 1, for the taxable year, Schedule TCS, Tax Credit Summary Schedule (For C Corporations with More Than One Economic Development Project), must be completed to reflect the amount of credit from each project that is claimed for the taxable year.
Extracted from PDF file 2020-kentucky-schedule-kira.pdf, last modified January 2005

More about the Kentucky Schedule KIRA Corporate Income Tax Tax Credit TY 2020

We last updated the Tax Credit Computation Schedule for a KIRA Project of a Corporation in June 2021, so this is the latest version of Schedule KIRA, fully updated for tax year 2020. You can download or print current or past-year PDFs of Schedule KIRA directly from TaxFormFinder. You can print other Kentucky tax forms here.

Related Kentucky Corporate Income Tax Forms:

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 KIRA.

Form Code Form Name
Schedule KIRA-SP Tax Computation Schedule for a KIRA Project of a Pass-Through Entity
Schedule KIRA-T Tracking Schedule for a KIRA Project

Download all KY tax forms 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 KIRA from the Department of Revenue in June 2021.

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Schedule KIRA 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 KIRA

We have a total of six past-year versions of Schedule KIRA 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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