750: Business Development Corporation Tax Return (2024)

Who files this form

Kentucky Form 750 is only for Business Development Corporations organized under KRS 155.020. The filing instructions specify that only corporations authorized by Chapter 155 of the Kentucky Revised Statutes should file this return.

When it's due

For tax year 2024, the return must be filed by June 1 after the close of the calendar year. The full amount of tax must be paid when the return is filed.

What you'll need

Have the following information and records available:

• The corporation’s federal identification number, incorporation date, Kentucky Corporation/LLET account number, name, and address.
• Books and records showing income, expenses, beginning- and end-of-year balances, and earned surplus activity.
• Details needed for the applicable schedules, such as inventory, dividends, officer compensation, bad debts, taxes, contributions, depreciation, and other deductions.
• The Kentucky Employer Withholding Number and, if applicable, the Kentucky Retail Sales and Use Tax Permit number.

Include applicable supporting documents:

• Federal Schedule D for sales or exchanges of property.
• Schedules for other income, casualty or theft losses, depletion, and other costs reported in Schedule A.
• A detailed supporting schedule for each line used in Schedule I, Depreciation and Amortization.
• Supporting schedules requested for balance-sheet and earned-surplus entries.
• A copy of any IRS changes to taxable income, if the IRS made changes.

How to file

Complete the return and applicable schedules using the corporation’s books and records. Complete the questions on page 4, and have an officer sign and date the return.

Make the check payable to Kentucky State Treasurer. Mail the check with the return to:

Department of Revenue

Frankfort, Kentucky 40620-0020

Pay the full amount of tax when filing.

Common mistakes

• Do not deduct salaries and wages on line 14 if they were deducted elsewhere.
• Do not include improvements or capital expenditures in the repairs deduction on line 16.
• Do not include federal taxes measured by income in Schedule G.
• Include federal income tax refunds in other income on line 11, and attach a schedule.
• Report capital-asset securities that became worthless during the taxable year on a separate Schedule D.
• Attach detailed support for each line used in Schedule I.

Questions people ask

What tax rate applies for 2024?

The rate is 4.5%. Total tax is taxable net income on line 30 multiplied by 4.5%, or $10, whichever is greater.

Should income and deductions come from the corporation’s books?

Yes. The instructions say taxable net income is the same as “book income.” Use income and deduction items from the corporation’s accounting records without special income-tax adjustments. Do not include income specifically exempted by the Kentucky Constitution or the Constitution and/or laws of the United States.

Does this payment replace other Kentucky taxes?

Under Chapter 155, payment of the tax determined by this return is accepted in place of the state income tax imposed by KRS 141.040 and the tax imposed by KRS 141.0401.

Should I use Schedule A or Schedule B for costs?

Use Schedule A for cost of goods sold when inventories are an income-determining factor. Use Schedule B for cost of operations when inventories are not an income-determining factor.

Official sources

• https://revenue.ky.gov/Forms/Form%20750%202024.pdf