1. Qualified Research Facility Tax Credit – Credit for building or equipping research facilities.
  2. KRS 141.395 (Kentucky Revised Statute) – Law establishing the research facility tax credit.
  3. Tax Credit for Construction of Research Facilities – Incentive for constructing qualified research buildings.
  4. Qualified Costs of Construction – Eligible expenses for building research facilities.
  5. Construction of Research Facilities (Definition) – Building new or expanding existing research centers.
  6. Tangible, Depreciable Property (Requirement) – Physical assets subject to depreciation for tax.
  7. Exclusion: Replacement Property – Replacing existing property does not qualify.
  8. Credit Percentage (5%) – Credit equals five percent of qualified costs.
  9. Kentucky Department of Revenue (DOR) – State agency administering Kentucky tax laws.
  10. Nonrefundable Credit – Credit cannot exceed tax liability; no refund.
  11. Carryforward Period (10 Years) – Unused credits carried forward for ten years.
  12. KRS 141.020 (Individual Income Tax) – Statute governing individual income tax in Kentucky.
  13. KRS 141.040 (Corporation Income Tax) – Statute governing corporation income tax in Kentucky.
  14. KRS 141.0401 (Limited Liability Entity Tax – LLET) – Statute establishing limited liability entity tax.
  15. KRS 141.0205 (Priority/Ordering of Credits) – Rules for the order of claiming credits.
  16. Kentucky Schedule QR (Qualified Research Facility Tax Credit) – Form to calculate research facility tax credit.
  17. Kentucky Schedule TCS (Credit Summary for Corporations/PTEs) – Summary schedule for corporate tax credits.
  18. Kentucky Schedule ITC (Credit Summary for Individuals) – Summary schedule for individual tax credits.
  19. Qualified Research (Same meaning as IRC § 41) – Research meeting federal IRC Section 41 definition.
  20. Internal Revenue Code (IRC) Section 41 – Federal law defining qualified research activities.
  21. IRC § 41(d) (Definition of Qualified Research) – Specific definition of qualified research activities.
  22. Constructing Facilities (Qualified Cost) – Building new structures for research purposes.
  23. Remodeling Facilities (Qualified Cost) – Renovating existing structures for research use.
  24. Expanding Existing Facilities (Qualified Cost) – Increasing size of current research structures.
  25. Equipping Facilities (Qualified Cost) – Installing necessary equipment for research activities.
  26. Facilities in This State (Kentucky) – Research centers located specifically within Kentucky.
  27. Pass-Through Entity (PTE) – Business passing income and credits to owners.
  28. Partnership (PTE) – Business structure where partners share profits/losses.
  29. S-Corporation (PTE) – Corporation taxed as a pass-through entity.
  30. Limited Liability Company (LLC) (PTE) – Business structure offering liability protection to owners.
  31. Distributive Share of Income (PTE Allocation) – Owner’s portion of income and credits.
  32. Kentucky Schedule K-1 (Pass-Through Credit Reporting) – Form reporting shareholder’s share of income/credits.
  33. Sole Proprietor (Eligibility) – Individual business owner claiming credit personally.
  34. Business Component (IRC § 41 Term) – Product, process, or software being improved.
  35. Elimination of Uncertainty (IRC § 41 Term) – Research aimed at resolving technical unknowns.
  36. Process of Experimentation (IRC § 41 Term) – Systematic trial and error to solve problems.
  37. Technological in Nature (IRC § 41 Term) – Relies on hard sciences like engineering.
  38. Application and Subsequent Approval of Credit – Process of applying for and receiving credit.
  39. Supporting Schedule (Listing Depreciable Property) – Document listing details of depreciable property.
  40. Date Purchased (Depreciable Property) – When the depreciable property was bought.
  41. Date Placed in Service (Depreciable Property) – When property is ready and available for use.
  42. Unused Credit (Carryforward Calculation) – Credit amount remaining after applying to tax.
  43. KRS Chapter 141 (Income Taxes) – Kentucky laws regarding income taxes.
  44. KRS Chapter 154 (Economic Development) – Kentucky laws regarding economic development.
  45. Taxpayer (Claiming the Credit) – Entity or individual claiming the tax credit.
  46. Income Tax Liability (Against which the credit is applied) – Total tax owed against which credit applies.
  47. LLET Liability (Against which the credit is applied) – Limited liability entity tax owed.
  48. Kentucky Form 720 (Tax Return Filing with Schedule QR) – Kentucky corporation income tax return form.
  49. Individual Income Tax Credit (Application) – Credit applied to personal income tax.
  50. Corporation Income Tax Credit (Application) – Credit applied to corporate income tax.