Schedule CCI: Application and Credit Certificate of Clean Coal Incentive Tax Credit (2024)
Kentucky · Kentucky DOR · Used for tax years 2024
Kentucky Schedule CCI is an application and credit certificate for the Clean Coal Incentive Tax Credit. It reports qualifying coal purchases used to generate electricity, the tons approved by the Department of Revenue, and how the approved credit is applied against taxes.
Who files this form
Use Schedule CCI to apply for Kentucky's Clean Coal Incentive Tax Credit. The instructions identify these eligible applicants:
- An electric power company subject to tax under KRS 136.120 and certified as a clean coal facility.
- A taxpayer that owns or operates a clean coal facility and purchases eligible coal used by that taxpayer in a certified clean coal facility.
- A parent company of either type of entity above, if the subsidiary is wholly owned.
When it's due
For coal purchases during calendar year 2024, submit Schedule CCI by March 15 of the following year. The printed instructions require submission by March 15 each year for coal purchases made during the prior calendar year.
What you'll need
Have the following ready:
- Entity name, address, federal identification number, Kentucky Corporation/LLET account number, entity type, and contact information.
- Facility name and location, the Energy and Environment Cabinet certification date, and the certification letter. Attach that letter to the application.
- Each coal supplier's name and the name and Kentucky coal severance tax account number of the person subject to that tax on the qualifying coal.
- Qualifying tons purchased for each supplier and coal severance taxpayer entry.
Keep records verifying qualifying coal purchases, including invoices and proof of payments, for five years.
When claiming the credit on a tax return, attach the certification received from the Department of Revenue.
How to file
- Complete all name and address information, identify the entity type, and enter the calendar year of the coal purchases. If the entity type is not listed, check “Other” and list the type.
- Attach the Energy and Environment Cabinet certification letter.
- Complete Part I. Enter suppliers in Column A, coal severance taxpayer information in Column B, and qualifying tons in Column C. Use separate lines when more than one person was subject to coal severance tax on coal purchased from the same supplier.
- Sign and date the application and enter the signer's title. Column D and Part II are for Department of Revenue use only.
- Submit the schedule to:
Kentucky Department of Revenue
Office of Property Valuation
Division of Minerals Taxation and GIS Services
501 High Street, Station 33
Frankfort, Kentucky 40601-2103
Use Part III to recap the approved credit and its application to taxes. Enter the amounts from lines 2(a) and 2(b) on Schedule TCS, Part II, Columns E and F, respectively.
For pass-through entities: Include each partner's, member's, or shareholder's pro rata share of the approved credit on Schedule K-1. Also notify the department at DORTaxCredits@ky.gov. The email must contain a separate plain-text or plain ASCII attachment listing each recipient's name, address, telephone number, identification number, and distributive share of the tax credit. This email requirement is separate from submitting Schedule CCI.
Common mistakes
- Carrying the credit forward. No carryforward is allowed. Use the credit on the tax return for the period when the eligible coal was purchased.
- Reducing LLET below its minimum. The credit cannot reduce LLET below $175.
- Omitting certification. Attach the Energy and Environment Cabinet certification letter to the application and the Department of Revenue certification to the tax return.
- Skipping the pass-through entity notification. Failure to provide the required recipient information electronically in the stated format may cause all partners, members, or shareholders to forfeit available credits.
Questions people ask
How much is the credit?
The credit is $2 for each ton of qualifying coal. The Department of Revenue determines the approved tons and calculates the credit in Part II.
What counts as qualifying coal?
Qualifying coal is coal subject to Kentucky coal severance tax under KRS 143.020 that the company purchases and uses to generate electricity.
Which taxes can the credit offset?
The credit applies to individual income tax or corporation income tax, and/or LLET, and the state portion of public service corporation property tax. The instructions require applying the credit to the applicable income tax and LLET first, then applying any remaining credit to the public service corporation property tax.
Must the corporation income tax credit and LLET credit amounts match?
No. The instructions say the amounts may differ because of limitations. The credit cannot reduce LLET below the $175 minimum.
What if the coal supplier is not the person subject to coal severance tax?
List the supplier in Column A. In Column B, enter the name and Kentucky coal severance tax account number of the person subject to that tax. If several people were subject to the tax on coal from the same supplier, use a separate line for each.