Schedule CCI: Application and Credit Certificate of Clean Coal Incentive Tax Credit (2025)
Kentucky · Kentucky DOR · Used for tax years 2025
Kentucky Schedule CCI is the application and credit certificate for the Clean Coal Incentive Tax Credit. It reports qualifying coal purchased and used to generate electricity, the tons approved by the Department of Revenue, and how the approved credit is applied to taxes. The cre
Who files this form
Use Schedule CCI to apply for Kentucky’s Clean Coal Incentive Tax Credit. The schedule lists 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 in a certified clean coal facility.
- A parent company of either eligible entity above, if the subsidiary is wholly owned.
Qualifying coal must be subject to Kentucky coal severance tax under KRS 143.020 and purchased and used by the company to generate electricity.
When it's due
For 2025 coal purchases, submit Schedule CCI by March 15 of the following year. The printed rule requires submission by March 15 each year for coal purchases made during the prior calendar year.
What you'll need
Have these documents and details ready:
- The Energy and Environment Cabinet certification letter, which must be attached to the application, and the certification date.
- Entity name, address, federal identification number, Kentucky Corporation/LLET account number, entity type, facility name and location, and contact information.
- Each supplier’s name, the name and Kentucky coal severance tax account number of the person subject to that tax, and the qualifying tons purchased.
- Invoices and proof of payments verifying qualifying coal purchases. Keep these records for five years.
When claiming the credit, attach the certification received from the Department of Revenue to the tax return.
Pass-through entities also need each partner’s, member’s, or shareholder’s name, address, telephone number, identification number, and distributive share of the credit for the required electronic notice.
How to file
- Complete all information in the name and address portion. If your entity type is not listed, check “Other” and state the type.
- Enter the calendar year of the coal purchases, facility information, and certification date. Attach the Energy and Environment Cabinet certification letter.
- Complete Part I. Put supplier names in Column A, the required coal severance taxpayer information in Column B, and qualifying tons in Column C. If more than one person was subject to severance tax on coal from the same supplier, use a separate line for each person. Column D and Part II are for Department of Revenue use.
- Sign and date the application and enter the signer’s title.
- 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 the listed taxes. Attach the Department of Revenue certification to the return on which you claim the credit.
Pass-through entities: Include each owner’s pro rata share of the approved credit on Schedule K-1. Also notify the department at DORTaxCredits@ky.gov. The email must have a separate plain-text or plain ASCII attachment listing each partner’s, member’s, or shareholder’s name, address, telephone number, identification number, and distributive share of the credit. This email requirement is for the owner notice.
Common mistakes
- Trying to carry the credit forward. No carryforward is allowed. Use the credit on the return for the period in which the eligible coal was purchased.
- Reducing LLET below its minimum. The credit cannot reduce LLET below $175.
- Leaving out certifications. Attach the Energy and Environment Cabinet certification letter to the application and the Department of Revenue certification to the tax return.
- Skipping pass-through reporting. Include each owner’s pro rata share on Schedule K-1 and send the required electronic notice. Failure to provide the required owner information in the specified manner may cause all partners, members, or shareholders to forfeit available credits.
- Discarding purchase records too soon. Keep invoices, proof of payments, and records verifying qualifying tons for five years.
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 purchased.
Which taxes can the credit offset?
The credit applies to individual income tax or corporation income tax, LLET, and the state portion of public service corporation property tax. The instructions require applying it first against the applicable income tax and LLET, with any remaining credit applied against the tax under KRS 136.120.
Must the corporation income tax credit and LLET credit amounts match?
No. 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?
Enter the supplier’s name in Column A. In Column B, enter the name and Kentucky coal severance tax account number of the person subject to that tax. Use separate lines if more than one person was subject to severance tax on coal purchased from the same supplier.