Kentucky R&D Tax Credit Summary

R&D Tax Credit Available

Yes – Qualified Research Facility Tax Credit

Eligible Entities

C-Corporations, S-Corporations, LLCs, Partnerships

Deadline for Tax Filing

Due with Form 720

Data Required to Compute Credit


Claim Period Kentucky Qualified R&D Expenses (QREs)

Credit Carryforward

10 Years

R&D Credit Summary

A credit of 5 percent (5%) of the qualified costs of construction, remodeling, expanding and equipping facilities in Kentucky for “qualified research.”

Special Notes

A copy of the Schedule QR must be submitted each year until the full credit is utilized or the 10-year carryforward period has expired.

“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.