Schedule TCS: Tax Credit Summary Schedule (2025)
Kentucky · Kentucky DOR · Used for tax years 2025
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, other nonrefundable credits, and refundable credits and i
Who files this form
Schedule TCS is used by:
- Corporations to summarize tax credits claimed against corporation income tax.
- Corporations and limited liability pass-through entities to summarize tax credits claimed against the limited liability entity tax (LLET).
Part I is for corporations or limited liability pass-through entities with projects approved by the Kentucky Economic Development Financial Authority.
Limited liability pass-through entities do 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 on Schedule TCS. Refer to the instructions for those schedules.
What you'll need
Gather the information and attachments that apply to your credits:
- Entity information: Name, federal identification number, and Kentucky Corporation/LLET Account Number.
- Economic development projects: Project location, project number, project type, all required certifications, and the applicable credit computation schedule for each project. The listed schedules are KREDA, KIDA, KJRA, KIRA, KJDA, KBI, KRA, and IEBA.
- MCC or STICA credits: Copies of certifications from the Bluegrass State Skills Corporation.
- KSBTC or KSFTC credits: A copy of the certification from the Kentucky Economic Development Finance Authority.
- Part II credits: The attachment listed for each credit, such as Schedule FON, Schedule UTC, Schedule INV, certification copies, or a KEDFA notification. An attachment is required even when preapproval is not required.
- Credits received through a K-1: The issuing company's FEIN. Attach a statement if more than one credit was received through a K-1.
- Part IV refundable credits: Preapproved certification copies for Certified Rehabilitation, Kentucky Entertainment Incentive, or Decontamination credits.
How to file
Attach Schedule TCS to Form 720, 720U, PTE, or 725.
- Part I: Complete a separate line for each project. Enter the credit limitation from the applicable computation schedule in Column D, the LLET credit claimed in Column E, and the corporation income tax credit claimed in Column F.
- Part II: Enter the applicable nonrefundable credits and include the required attachments. 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 the LLET total 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 the corporation income tax total 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 on lines 1 through 3. 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 directions.
Common mistakes
- Leaving out certifications: Failure to submit required certifications results in automatic credit denial.
- Skipping attachments when preapproval is not required: A “No” in the preapproval column does not remove the attachment requirement.
- Using credits in the wrong order: When claiming more than one credit, use them in the order listed on Schedule TCS. Economic development project credits do not have to be used in any particular order.
- Exceeding nonrefundable credit limits: Nonrefundable credits cannot reduce LLET below $175 or corporation income tax below zero. If needed, reduce credits beginning with the last credit listed.
- Missing K-1 information: Check the K-1 box, provide the issuing company's FEIN, and attach a statement if more than one credit was received through a K-1.
Questions people ask
Can the credit amounts differ for LLET and corporation income tax?
Yes. The schedule states that the amount of credit against each tax can be different.
Does every credit need preapproval?
No. The schedule identifies which credits require preapproval. You must still submit the listed attachment for a credit marked “No.”
Can nonrefundable credits eliminate all my LLET?
No. The totals from Parts I and II cannot reduce LLET below the $175 minimum. Nonrefundable corporation income tax credits cannot reduce that tax liability below zero.
When is a Certified Rehabilitation credit reported as nonrefundable?
The instructions describe nonrefundable Certified Rehabilitation credits as credits transferred to a financial institution with Department of Revenue approval.