Kentucky R&D Tax Credit Summary

Kentucky R&D Tax Credit, R&D tax credit, Kentucky
Kentucky State R&D Tax Credit

Refundable Tax Credit – No

A tax credit equal to 5% against the corporate or personal income taxes and the limited liability entity tax for qualified construction costs of research facilities is available to qualified taxpayers

“Qualified research” means qualified research as defined under IRC § 41.

“Construction of research facilities” means:

  • constructing, remodeling, and equipping facilities in Kentucky; or
  • expanding existing facilities for qualified research; and
  • only includes tangible, depreciable property

It does not include any amounts paid or incurred for replacement property.

Carryforward

If the credit amount that an investor can claim in a given tax year exceeds the investor’s income tax liability for that year, that investor can carry forward the excess tax credit until the tax credit is used, up to 10 years. Any tax credits not used within 10 years are forfeited.

How to obtain the credit? 

Fill out Schedule QR and attach it to Form 720, 720S, 725, 765 or 765-GP.

Find out if you qualify for the R&D tax credit

 

SELL YOUR NOL’s AND R&D CREDITS

If your company hasn’t considered the R&D credit in the past because you have net operating losses (NOLs) and could not utilize the credit contact us today to find out which states allow you to sell your credits and losses for up to 95 cents on the dollar. Also, qualified start-up companies can now take a credit on their payroll taxes for their R&D credit, allowing your company to utilize the R&D credit immediately, even if your company does not have taxable income.
FIND OUT MORE TODAY

 

States Offering R&D Credit:

                             States Without R&D Credit

Alabama
District of Columbia
Missouri
Montana
Nevada
Oklahoma
South Dakota
Tennessee
Washington
West Virginia
Wyoming