The Kentucky R&D tax credit is available to businesses that invest in the construction of research facilities for authorized research, and it is equal to 5% percentage of the eligible costs incurred. The credit cannot be refunded, which means that it can only be used to offset the tax liability of the business. In other words, the credit cannot result in a direct payment or refund to the business. It’s important for companies to understand the eligibility requirements for this credit and the types of costs that qualify as eligible expenses. By taking advantage of this tax credit, businesses can reduce their overall tax liability and potentially reinvest those savings back into research and development activities.

To claim the Qualified Research Facility Tax Credit in Kentucky, the Schedule QR must be attached and submitted along with the income tax return. It is important to note that this tax credit is non-refundable and cannot be transferred to other entities.

A business may carry forward an excess tax credit for up to 10 years if it claims more tax credits than it owes in a given tax year. However, if the tax credit is not used within this time frame, it will expire, and the business will lose the credit.

Businesses in Kentucky that invest in constructing research facilities may be eligible for a state income tax credit. This credit can be carried forward for up to ten years if not fully utilized. The credit has been available since 2002 and applies to tax years beginning on or after a specific date. It’s essential for businesses to understand the eligibility criteria and requirements for this credit. By investing in research facilities, businesses can benefit from this tax credit and potentially reduce their tax liability. This, in turn, can allow them to allocate more resources towards research and development initiatives, promoting growth and innovation. The tax credit provides an incentive for businesses to invest in research facilities, which can have a positive impact on the state’s economy.

The Research and Development (R&D) Tax Credit is a tax incentive offered to companies that invest in research facilities and activities. While Kentucky offers a state-level R&D credit, the federal credit is available to companies across the United States. The Kentucky R&D tax credit is non-refundable and provides a 5% tax credit on qualified costs for the building of research facilities for approved research, while the federal credit offsets research costs against federal tax liabilities. Eligibility requirements and qualifying activities may differ between the two credits.