Article: 50342
Overview
Use this screen to report any Kentucky-specific individual tax credits that apply to the taxpayer and/or spouse.
Each credit has a taxpayer field and a spouse field. If filing jointly, override fields in green allow for Kentucky-specific entry that differs from the federal calculation. Enter only the amount that applies to each individual.
The following credits are supported:
- Limited Liability Entity tax credit
- Kentucky small business investment credit
- Kentucky Selling Farmers
- Skills training investment
- Certified rehabilitation credit
- Credit for taxes paid to other states
- Unemployment credit
- Recycling and/or composting equipment
- Kentucky Investment Fund
- Qualified research facility
- Employer GED Incentive Program
- Voluntary environmental remediation credit – Brownfields
- Biodiesel credit
- Clean coal incentive credit
- Ethanol credit
- Cellulosic ethanol credit
- Railroad maintenance and improvement credit
- Endow Kentucky credit
- New Markets Development Program credit
- Distilled Spirits tax credit
- Angel Investor tax credit
- Inventory credit
- Renewable Chemical Production credit
Enter each applicable amount in the corresponding field to ensure accurate credit application on the KY 740 return.
How to Add Schedule ITC
- Go to the State taxes section.
- Select I’d like to see the forms I’ve filled out or search for a form.
- In the drop list, select Kentucky.
- Select the Credits tab.
- Select Schedule ITC – Individual Tax Credit Schedule to add and open the form.
- Complete the screen.
- Click Save to apply changes
Further Information
Visit the Kentucky Department of Revenue – Individual Income Tax page for more on available credits and eligibility:
https://revenue.ky.gov/Individual/Individual-Income-Tax/Pages/default.aspx