Schedule KRCC: Project/Distributing Entity Share Of Capital Credit (Revision)
Alabama · Alabama DOR · Used for tax years 2024
Alabama Form K-RCC reports a recipient’s share of a qualifying project’s income allocated to Alabama and available capital credit. It identifies the recipient, project, and distributing entity and calculates the recipient’s shares using their allocation percentage.
Who files this form
A pass-through entity, such as an S corporation, partnership or LLC, that is entitled to an Income Tax Capital Credit must complete Form AR-PTE before completing Form K-RCC for each owner.
- A pass-through project entity must complete and provide Form K-RCC to each recipient to allocate project income and available capital credit.
- A distributing entity that receives a share of the credit and passes it on to its owners must complete Form K-RCC for each of its recipients.
- A separate Form K-RCC is required for each qualifying project.
- Recipients must file the completed Form K-RCC with their income tax returns.
Do not complete this form if the project entity is a C corporation.
What you'll need
Have these records and details available:
- The recipient’s name, FEIN or Social Security number, address and telephone number.
- The project number, project entity name, project address and placed-in-service date.
- The distributing entity’s name and FEIN, if applicable.
- The recipient’s ownership percentage.
- The authorized representative’s name, contact information, signature and date.
Project entities use the “Review Submission” section of the Annual Report for Capital Credit (Form AR) submitted through MAT to find project income and available capital credit. Distributing entities use the Form K-RCC they received.
Complete Form AR-PTE before preparing Form K-RCC. Individual recipients must also complete Schedule KRCC-I. C corporations and trusts claiming the credit on their returns must complete Schedule KRCC-B.
How to file
Project and distributing entities must submit Form K-RCC distributions in MAT for each owner. Follow the directions for claiming a credit in the Schedule PC or Schedule FC instructions. Include a copy of Form K-RCC with the entity’s income tax return.
The entity completing the form must provide contact information and sign it before forwarding it to the recipient.
Recipients must attach the following to their returns:
- Pass-through entities: Form K-RCC.
- Individuals: Form K-RCC and a completed Schedule KRCC-I.
- C corporations or trusts claiming the credit: Form K-RCC and a completed Schedule KRCC-B.
The supplied text does not provide a mailing address.
Common mistakes
- Treating the available credit as automatically usable in full. The credit may be limited by the tax attributed to the owner’s share of project income. The recipient must complete Schedule KRCC-I or Schedule KRCC-B to determine the amount usable on the owner’s return.
- Preparing this form for a C corporation project entity. The form specifically says not to do so.
- Skipping Form AR-PTE. Pass-through entities entitled to the credit must complete it before Form K-RCC.
- Omitting separate forms. Complete Form K-RCC for each recipient and each qualifying project.
- Leaving out the signature or contact information. Both are required before the form is forwarded to the recipient.
- Missing submission or attachment requirements. Project and distributing entities must submit owner distributions in MAT and include a copy with their returns. Recipients must attach Form K-RCC and any required credit schedule to their returns.
Questions people ask
What does Form K-RCC report?
It reports a recipient’s share of Alabama project income and the capital credit available for the tax year.
Where does a project entity get the amounts for lines 1 and 4?
Use the “Review Submission” section of Form AR submitted through MAT. For line 1, use “Total project income allocated and apportioned to project.” For line 4, use “Capital Credit available for this year.”
Where does a distributing entity get the amounts for lines 1 and 4?
Use the distributing entity’s received Form K-RCC, Part III. The instructions direct the entity to use line 1 for project income and line 5 for available capital credit.
How are the recipient’s shares calculated?
Enter the recipient’s ownership percentage on line 2. Multiply line 1 by line 2 to calculate the recipient’s share of project income on line 3. Multiply line 4 by line 2 to calculate the recipient’s share of available capital credit on line 5.
Can an individual claim the credit using only Form K-RCC?
No. An individual must attach both Form K-RCC and a completed Schedule KRCC-I to the individual income tax return. The schedule determines the amount of credit available to use.