Schedule KRCC: Project/Distributing Entity Share Of Capital Credit (Revision)
Alabama · Alabama DOR · Used for tax years 2025
Alabama Form KRCC reports a recipient’s share of a qualifying project’s Alabama income and available capital credit. A project or distributing pass-through entity completes a separate form for each recipient and each qualifying project.
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 preparing Form K-RCC for each owner.
- A pass-through project entity must prepare and provide Form K-RCC to each recipient to allocate project income and the available capital credit.
- A distributing entity that receives a share of the credit and passes it on must prepare 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 the following forms and information ready:
- Form AR-PTE, which must be completed before Form K-RCC.
- The recipient’s name, address, telephone number, and FEIN or Social Security number.
- The project number, project entity name, project address and placed-in-service date, plus the distributing entity’s name and FEIN.
- The recipient’s percentage of ownership in the pass-through entity.
- For a project entity, the “Review Submission” section of the Annual Report for Capital Credit (Form AR) submitted through MAT. It supplies the project income and available credit amounts.
- For a distributing entity, its received Form K-RCC. The printed instructions use Part III, line 1 for project income and Part III, line 5 for available credit.
- The authorized representative’s name, contact information, signature and date.
Individual recipients must attach a completed Schedule KRCC-I along with Form K-RCC. C corporations and trusts claiming the credit on their returns must attach a completed Schedule KRCC-B along with Form K-RCC.
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 preparing the form must provide contact information, sign it and forward it to the recipient.
Recipients must attach the form to their returns:
- Pass-through entity: Attach Form K-RCC to the pass-through entity’s return.
- Individual: Attach Form K-RCC and a completed Schedule KRCC-I to the individual income tax return.
- C corporation or trust claiming the credit: Attach Form K-RCC and a completed Schedule KRCC-B to the income tax return.
Common mistakes
- Preparing the form for a C corporation project entity. The form specifically says not to do this.
- Treating the available credit as automatically usable in full. The credit may be limited by the tax attributable to the owner’s share of project income. Schedule KRCC-I or Schedule KRCC-B determines the amount usable on the owner’s return.
- Leaving out required attachments. Recipients must include Form K-RCC with their returns and the applicable completed credit schedule.
- Skipping the MAT submission. Project and distributing entities must submit distributions in MAT for each owner and include a copy of Form K-RCC with the entity’s return.
- Forwarding an unsigned form or omitting contact information. The preparing entity must sign the form and provide contact information before forwarding it.
Questions people ask
Do I need a separate form for each project?
Yes. A Form K-RCC must be completed for each qualifying project, with a form prepared for each recipient.
How is the recipient’s share calculated?
Enter the recipient’s ownership percentage on line 2. Multiply line 1 by line 2 to calculate the recipient’s share of Alabama project income on line 3. Multiply line 4 by line 2 to calculate the recipient’s share of available capital credit on line 5.
Where does a project entity find 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.”
Can the owner use the full credit shown on the form?
Not necessarily. The available credit may be limited by the tax attributable to the owner’s share of project income. The recipient must complete Schedule KRCC-I or Schedule KRCC-B to determine the usable amount.
What if the recipient passes the credit on to its own owners?
A recipient that is a distributing entity must prepare Form K-RCC for each of its recipients to allocate the portion it received.