PTE(K): Kentucky Schedule K for Pass-Through Entities with Economic Development Project(s) (2025)
Kentucky · Kentucky DOR · Used for tax years 2025
Kentucky Form PTE(K) is a Schedule K for pass-through entities with economic development projects. It determines owners’ shares of income, credits, deductions, and other items excluding amounts attributable to those projects, and reports limited liability entity tax and apportion
Who files this form
A pass-through entity with one or more projects under any of the following programs must use the 2025 Kentucky Schedule PTE(K) instead of Form PTE Schedule K:
- Kentucky Rural Economic Development Act (KREDA)
- Kentucky Industrial Development Act (KIDA)
- Kentucky Jobs Retention Agreement (KJRA)
- Kentucky Industrial Revitalization Act (KIRA)
- Kentucky Jobs Development Act (KJDA)
- Kentucky Business Investment Program (KBI)
- Kentucky Reinvestment Act (KRA)
- Incentives for Energy Independence Act (IEIA)
- Incentives for Energy-related Business Act (IEBA)
- Farming Operation Networking Project (FON)
This schedule determines the owners’ shares of income, credits, deductions, and other items, excluding amounts attributable to the economic development projects.
What you'll need
Gather the forms and schedules that apply to your entries:
- Project schedules: Attach the applicable tax computation schedules, such as KREDA-SP, KIDA-SP, KJRA-SP, KIRA-SP, KJDA-SP, KBI-SP, KRA-SP, IEIA-SP, IEBA-SP, or FON-SP, and supporting schedules for each project.
- Multiple projects: Attach a schedule showing how you calculated the total project amount for each item.
- Rental real estate: Attach federal Form 8825. For expenses from other rental activities, attach a schedule.
- Capital gains and losses: Attach federal Schedule D and Kentucky Schedule D, if applicable.
- IRC §1231 gains and losses other than casualty or theft: Attach federal Form 4797 and Kentucky Form 4797.
- IRC §179 expense deduction: Attach federal Form 4562 and Kentucky Form 4562.
- Other listed items: Attach schedules for other portfolio income or loss, other income or loss, charitable contributions, deductions related to portfolio income, other deductions, and items reported separately to partners or shareholders.
- General partnership refundable credits: Attach certifications for the certified rehabilitation, Kentucky Entertainment Incentive, or decontamination tax credits you report.
You will also need the referenced amounts from Form PTE, Schedule L, and Schedule A to complete the corresponding entries. The printed instructions direct you to Form PTE Schedule K instructions for column (a) and additional guidance on Sections B, C, and D.
Common mistakes
- Using Form PTE Schedule K instead of PTE(K). The printed “IMPORTANT” notice says a pass-through entity with one or more projects under the listed economic development programs must use this schedule instead of Form PTE Schedule K.
Questions people ask
What goes in Section A, column (b)?
For each income or deduction item, enter the amount attributable to the economic development project or projects. If you have more than one project, attach a schedule showing the calculation of each total.
What if the projects are the entity’s only operations?
For each item, the amount entered in column (b) should equal the amount entered in column (a).
How do I calculate column (c), and how does it relate to owners’ Schedules K-1?
For each income or deduction item, subtract column (b) from column (a). Column (c) is used to determine the items shown on each owner’s Kentucky Schedule K-1. The total pro rata share items across all Schedules K-1 should equal the corresponding amounts on column (c), lines 1 through 23.
Who completes the refundable tax credit entries?
The refundable tax credit entries are for general partnerships only. Enter the refundable amount for the applicable credit and attach the required certifications.