A man with a beard and a pink bubble with the words let's talk.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
close

Kentucky R&D Tax Credits

R&D Tax Credits

Connect with us to find out how R&D Tax Credits can boost your organization’s performance.

go back
This post was last updated on April 23rd, 2023 by Casey Barka.

Kentucky R&D Tax Credits R&D Tax Credit

Find out if you qualify for R&D tax credits in Kentucky R&D Tax Credits and recharge your business.

%
%
%
years
Total tax credit can be carried forward

Kentucky R&D Tax Credits R&D Tax Credit Eligibility Summary:

Is the R&D Tax Credit Available?:
Yes
No
Eligible Entities:
Deadline for Tax Filing:
Data Required to Compute Credit:
What Information is needed?:

Kentucky R&D Tax Credits R&D Tax Credit Guidelines:

Kentucky R&D Tax Credits R&D Tax Credit Case Study

A Nebaraska-based manufacturing company recovered $304K from the R&D tax credits.

$

Amount earned in Arizona state tax credits

%

Amount of wages qualifed for a Arizona based manufacturer

$

Total R&D tax credit earned

Key Kentucky R&D Tax Credits R&D Tax Rules Changes

2019' - 22
22' and after
2019' - 22
22' and after

Resources

There are many other considerations and exemptions, including what documentation the IRS requires for the R&D tax credits. Stay updated to navigate the new tax laws with confidence.

Kentucky R&D Tax Credits

Connect with us to find out how R&D Tax Credits can boost your organization’s performance.

Ready to Maximize Your State Credits?

With just a little info, our Strike Experts can help you start your R&D tax credit journey.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
go back

Kentucky R&D Tax Credits

Find out if you qualify for R&D tax credits in Kentucky and recharge your business.

While Kentucky doesn't have a specific statute that mirrors IRC Section 41, the Qualified Research Facility Tax Credit is a nonrefundable credit equal to 5% of the qualified costs of construction of research facilities that may be applied against income taxes imposed by KRS 141.020 (individual income tax), KRS 141.040 (corporation income tax), or KRS 141.0401 (limited liability entity tax, or LLET). Kentucky statute KRS 141.0205 provides an ordering provision when utilizing credits. Any unused credit may be carried forward 10 years.

Construction of research facilities means expenses associated with the construction, remodeling, and equipping of facilities in Kentucky, or expanding existing facilities to conduct qualified research.

Qualified research is defined in a manner consistent with Section 41 of the Internal Revenue Code. Expenses must be attributed to tangible, depreciable property and cannot include any amounts paid or incurred for replacement property (e.g. raw materials or supplies).

Learn more about Kentucky's R&D Tax Credit here.

R&D Tax Credit Available:

Yes - Qualified Research Facility Tax Credit

Eligible Entities:

C-Corporations, S-Corporations, LLCs, Partnerships

Deadline for Tax Filing:

Schedule QR is due with Kentucky Form 720 filing

Data Required to Compute Credit:

Claim Period Kentucky Qualified R&D Construction Expenses

Credit Carryforward:

10 Years

The R&D tax credit equals:

  • 5% of the qualified costs of construction, remodeling, expanding, and equipping facilities in Kentucky for "qualified research".
  • Schedule QR, Qualified Research Facility Tax Credit, must be filed with the income tax return claiming the state tax credit. A schedule of the tangible, depreciable property listing the date purchased, date placed in service, description, and cost must be included with the return. For credit carryforwards, a copy of the Schedule QR must be attached each year the credit is claimed on the filed income tax return.
  • Taxpayers that receive a share of the qualified research facility credit via a Kentucky K-1 through their ownership in a pass-through entity must file Schedule TCS for corporations and pass-through entities or Schedule ITC for individuals. These schedules should be completed to reflect the taxpayer's share of the credit. The Schedule TCS or Schedule ITC is required to be attached to any return which is claiming the credit, along with a copy of the Schedule QR.

Ready to calculate your R&D tax credits?

To get an estimate of the potential value of your unclaimed R&D Tax Credits, try out our credit calculator.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
A black background with a lightning symbol.
a screenshot of a tax calculatora screenshot of a tax calculator
A phone and a tablet displaying a tax calculator.
Download the app.

Download our R&D Tax Credit Calculator for Android to see how much you can receive from your qualified R&D tax credit expenses.

google-pay