Schedule TCS: Tax Credit Summary Schedule (2024)
Kentucky · Kentucky DOR · Used for tax years 2024
Kentucky Schedule TCS summarizes tax credits claimed by corporations against corporation income tax and by corporations and limited liability pass-through entities against the LLET. It reports economic development credits and totals for nonrefundable and refundable credits.
Who files this form
Schedule TCS is used by:
- Corporations to summarize credits claimed against Kentucky corporation income tax.
- Corporations and limited liability pass-through entities to summarize credits claimed against the limited liability entity tax (LLET).
Complete Part I if you have approved projects under the economic development programs listed in the schedule. The amount of credit claimed against income tax may differ from the amount claimed against LLET.
What you'll need
Have your entity name, federal identification number (FEIN), Kentucky Corporation/LLET account number, and the supporting documents for each credit you claim.
Economic development credits, Part I
- Project location, project number, project type, and credit amounts.
- The applicable computation schedule for each project: Schedule KREDA, KIDA, KJRA, KIRA, KJDA, KBI, KRA, or IEBA.
- For MCC or STICA credits, a copy of the certification from the Bluegrass State Skills Corporation.
- For KSBTC or KSFTC credits, a copy of the certification from the Kentucky Economic Development Finance Authority.
Nonrefundable credits, Part II
Use the required attachment listed for your credit:
- Farming Operation Networking: Schedule FON.
- Certified Rehabilitation: certification copies.
- Unemployment: Schedule UTC.
- Recycling/Composting Equipment: Schedule RC.
- Kentucky Investment Fund: KEDFA notification.
- Qualified Research Facility: Schedule QR.
- GED Incentive: Form DAEL-31.
- Voluntary Environmental Remediation: Schedule VERB.
- Biodiesel: Schedule BIO.
- Clean Coal Incentive: Schedule CCI.
- Ethanol: Schedule ETH.
- Cellulosic Ethanol: Schedule CELL.
- Railroad Maintenance & Improvement: Schedule RR-I.
- Railroad Expansion: Schedule RR-E.
- Endow Kentucky: Schedule ENDOW.
- New Markets Development Program: Form 8874(K)-A.
- Distilled Spirits: Schedule DS.
- Inventory (ad valorem): Schedule INV.
- Renewable Chemical Production: Schedule CHEM.
For a credit received through a K-1, provide the issuing company's FEIN. Attach a statement if more than one credit was received through a K-1.
Refundable credits, Part IV
Attach certification copies for Certified Rehabilitation, Kentucky Entertainment Incentive, or Decontamination credits. All three are marked as requiring preapproval.
How to file
Attach Schedule TCS to Form 720, 720U, PTE, or 725, along with the required credit attachments.
- Part I: Use a separate line for each economic development project. Enter the credit limitation in Column D, the LLET credit claimed in Column E, and the corporation income tax credit claimed in Column F.
- Part II: Enter nonrefundable credits. If a credit came through a K-1, check the box and enter the issuing company's FEIN.
- Part III: Combine the nonrefundable credits from Parts I and II. Transfer LLET credits to Form 720; Form PTE; Form 725, Part II, line 5; or Form 720U, Schedule U9, Section A, line 5, in the respective column. Transfer corporation income tax credits to Form 720, Part III, line 7, or Form 720U, Schedule U9, Section B, line 7, in the respective column.
- Part IV: Add the refundable credits. Transfer the total to Form 720, Part II, line 9; Form PTE; Form 725, Part II, line 8; or Form 720U, Schedule U9, Section A, line 9, in the respective column.
The supplied text does not give a mailing address or e-filing instructions.
Common mistakes
- Skipping required attachments. An attachment is still required when the preapproval column says “No.” When it says “Yes,” submit the required preapproved attachment.
- Claiming too much nonrefundable credit. Credits from Parts I and II cannot reduce LLET below $175 or corporation income tax below zero. If needed, reduce credits beginning with the last credit listed.
- Applying credits in the wrong order. When claiming more than one credit, follow the order listed on Schedule TCS. Economic development project credits do not have to be used in any particular order.
- Leaving out K-1 information. Check the box, provide the issuing company's FEIN, and attach a statement if more than one credit was received through a K-1.
- Entering excluded pass-through credits. Limited liability pass-through entities must not enter income tax or LLET credits from Schedules KREDA-SP, KIDA-SP, KJRA-SP, KIRA-SP, KJDA-SP, KBI-SP, KRA-SP, IEBA-SP, or FON-SP. See those schedules' instructions.
Questions people ask
Can the income tax credit and LLET credit amounts be different?
Yes. The schedule states that the credit amount against each tax can differ.
Do I need a separate line for each economic development project?
Yes. Complete a separate line for each project in Part I and complete the applicable tax credit schedule for each project.
Does “No” under preapproval mean no attachment is needed?
No. You must still submit the listed attachment, but it does not need to be preapproved.
Can nonrefundable credits eliminate all of my LLET?
No. Nonrefundable credits from Parts I and II cannot reduce LLET below the $175 minimum. Corporation income tax credits cannot reduce that tax liability below zero.