720-DS-ELECT: Distilled Spirits Tax Credit Election (2025)
Kentucky · Kentucky DOR · Used for tax years 2025
Kentucky Form 720-DS-ELECT records an entity’s distilled spirits tax credit election for 2025. It provides two credit options involving a waiver of accumulated or future tax credits. The election is irrevocable and binding on both the taxpayer and the Department of Revenue.
Who files this form
Form 720-DS-ELECT is used to make a Kentucky distilled spirits tax credit election for 2025. It offers two choices: waive accumulated tax credits in exchange for the listed nonrefundable credit, or waive future tax credits in exchange for the listed refundable credit.
The form does not state who is required to make an election.
What you'll need
Have the information requested on the form ready:
- Entity name, mailing address, and telephone number.
- Federal identification number.
- Kentucky Corporation/LLET account number, if applicable.
- Beginning and ending dates if using a tax year other than calendar year 2025.
- The signing member’s name, title, signature, and date.
- Paid preparer information, if applicable, including name, signature, date, ID number, and email and/or telephone number.
The form does not list specific supporting documents to attach.
How to file
Complete the entity information and tax-year fields. Check the box for the election you are making. Complete the member signature, printed name, title, and date fields, along with the paid preparer fields if applicable. Indicate whether the Department of Revenue may discuss the return with the preparer.
Mail the form to:
Kentucky Department of Revenue
Frankfort, KY 40619-0006
The form provides no e-file instructions.
Common mistakes
- Overlooking that the election is permanent. The form states that an election is irrevocable and binds both the taxpayer and the department.
- Overlooking what you give up. The nonrefundable-credit option requires waiving accumulated tax credits. The refundable-credit option requires waiving all future tax credits allowed under this section.
- Missing the number-format reminder. The form states: “Must be 9 digits. If 6 digits, must lead with zeros.”
- Signing without checking the return. The signature declaration states, under penalties of perjury, that the return and accompanying schedules and statements are true, correct, and complete to the best of the signer’s knowledge and belief.
Questions people ask
What does the nonrefundable-credit option provide?
You waive any accumulated tax credits and may receive a nonrefundable, nontransferable credit for up to 25,000 barrels of distilled spirits in a bonded warehouse or premises for each taxable year. The credit equals 100% of the tax assessed under KRS 132.160 and paid on time by the taxpayer under KRS 132.180 on those barrels.
What does the refundable-credit option provide?
You waive all future tax credits allowed under this section and may receive a refundable credit on multiple taxes as described in KRS 141.389(7).
Can I revoke my election?
No. The form states that any election is irrevocable and binding on both the department and the taxpayer.
Where can I find more details about the election?
The form directs taxpayers to review KRS 141.389 at https://apps.legislature.ky.gov/law/statutes/statute.aspx.