Schedule KQBI: Kentucky Qualified Broadband Investment Tax Credit Application and Schedule (2025)
Kentucky · Kentucky DOR · Used for tax years 2025
Schedule KQBI is an application and schedule for the Kentucky Qualified Broadband Investment Tax Credit. It reports sales tax remitted or intended to be remitted, provides space for the Department of Revenue to certify the approved credit, and records the credit claimed on the ta
Who files this form
Schedule KQBI is for taxpayers applying for the Kentucky qualified broadband investment tax credit for expanding broadband services in Kentucky. The credit is based on sales and use tax remitted on qualified broadband investments.
The credit can be applied against Kentucky individual income tax, corporation income tax, and/or limited liability entity tax (LLET). The Department of Revenue certifies each taxpayer’s approved credit.
When it's due
- 2025 application: Submit Schedule KQBI to the Department of Revenue before December 31, 2025.
- Credit certificate for the 2025 application: The department will issue the certificate showing the awarded credit by February 1 following submission of the application.
The department will confirm receipt of your application. If you do not receive confirmation within one week of submitting it, contact the Tax Credits Section at 502-564-8139.
What you'll need
Have the following information and supporting documents ready:
- Applicant name, mailing address, location county, and contact information.
- Social Security number for an individual, or FEIN for other entities.
- Kentucky Corporation/LLET Account Number, if applicable.
- Amount of sales tax remitted or intended to be remitted.
- A statement explaining how approval of the credit will lead to greater investment in Kentucky through broadband expansion, upgrades to existing broadband infrastructure, or increased broadband access for residents.
- Verification of sales and use tax remitted. The instructions list a receipt for eligible equipment or services purchased or a lease agreement for eligible equipment or services.
When claiming the credit on your return, attach the approved credit certificate and verification of the sales and use tax remitted.
How to file
- Complete the applicant information and enter the sales tax remitted or intended to be remitted.
- Attach the required statement explaining how the credit will support greater broadband investment in Kentucky.
- Sign and date the application and enter the signer’s title and contact information.
- Submit the application to the Kentucky Department of Revenue. The text does not specify a mailing address or an e-file method.
- Once the department approves the credit, enter the approved amount and the amount claimed in the taxpayer section. Attach Schedule KQBI, the credit certificate, and tax-payment verification to Form 720, 720U, PTE, 725, 740, 740-NP, or 741, as applicable.
The listed Tax Credits Section contacts are phone 502-564-8139, fax 502-564-0058, and email DORTaxCredits@ky.gov.
Common mistakes
- Leaving out tax-payment verification: Failure to submit verification of sales and use tax remitted with the return will result in denial of the credit.
- Trying to carry unused credit forward: There is no carryforward. Any credit not used is lost in the same year.
- Using a six-digit Kentucky Corporation/LLET account number without leading zeros: The form requires nine digits. Add leading zeros if the account number has six digits.
- Not following up on a missing confirmation: Contact the Tax Credits Section if you have not received confirmation within one week of submitting the application.
Questions people ask
How is the credit limited?
The credit is based on sales and use tax remitted on qualified broadband investments, reduced by the seller reimbursement allowed under KRS 139.570, and limited to 50% of eligible equipment or services. The annual credit cap for all applicants is $5,000,000.
What happens if total approved credits exceed the annual cap?
The Department of Revenue allocates each applicant’s approved credit using the applicant’s requested credit as a share of the total credit requested by all applicants.
Is the credit refundable or transferable?
No. The credit is nonrefundable and nontransferable. Unused credit cannot be carried forward.
What equipment or services are eligible?
Eligible equipment or services are used in expanding broadband services in Kentucky. The listed items include wires, cables, fiber, antennas, poles, routers, modems, power equipment, certain central office or headend equipment, successor-technology equipment, and other infrastructure used wholly or partly to provide or expand broadband communications services.