Kentucky Schedule CCI is the application and credit certificate for the Clean Coal Incentive Tax Credit. It is used to claim a credit for qualifying coal purchases made during the prior calendar year, and it helps the Kentucky Department of Revenue determine the approved tons of coal that qualify for the credit
The credit may be available to an electric power company subject to public service corporation property tax, to a taxpayer that owns or operates a certified clean coal facility and purchases eligible coal used at that facility, or to a parent company if the qualifying subsidiary is wholly owned.
Credit Amount
The credit equals $2 for each ton of qualifying coal. Qualifying coal means coal that is subject to Kentucky coal severance tax and is purchased and used to generate electricity in a certified clean coal facility.
Filing Deadline
The schedule must be submitted by March 15 each year for coal purchases made during the previous calendar year.
Where To Send It
Send the completed schedule to:
Kentucky Department of Revenue
Office of Property Valuation
Division of Minerals Taxation and GIS Services
501 High Street, Station 33
Frankfort, Kentucky 40601-2103
How To Complete Kentucky Schedule CCI
Name Of Entity: Enter the full legal name of the taxpayer or entity applying for the credit.
Federal Identification Number: Enter the entity’s FEIN.
Number And Street: Fill in the entity’s mailing address.
Kentucky Corporation/LLET Account Number: Enter the 9-digit account number. If the number has only 6 digits, add leading zeros to make it 9 digits.
City, State, ZIP Code: Enter the full mailing location.
Telephone Number: Provide a contact phone number.
Name And Facility Location: Write the facility name and the physical location of the clean coal facility.
Type Of Entity: Check the box that matches your entity type. Choose Corporation, Limited Liability Pass-through Entity, General Partnership, or Other. If you check Other, identify the entity type.
Date Certified By The Energy And Environment Cabinet: Enter the certification date and attach the certification letter.
Part I, Qualifying Coal Purchases
Column A: List the name of each supplier from whom qualifying coal was purchased.
Column B: If the supplier is also the person subject to the Kentucky coal severance tax, enter that person’s Kentucky coal severance tax account number. If the taxable person is different from the supplier, list the taxable person’s name and account number instead.
Column C: Enter the number of qualifying tons purchased from each supplier.
Column D: This column is for Department of Revenue use only. Leave it blank.
Total Tons Purchased: Add all qualifying tons listed in Part I and enter the total.
Signature Section
Signature: The authorized person must sign the schedule.
Title: Enter the signer’s title.
Date: Enter the date signed.
Contact Name: If different from the signer, provide the contact person’s name.
Email Address: Enter a valid email address.
Telephone Number: Provide a contact phone number.
Fax Number: Enter a fax number if one is used.
Part II, Tax Credit
Line 1: Enter the number of approved eligible coal tons from the Department of Revenue.
Line 2: Multiply Line 1 by $2 to calculate the tax credit.
Part III, Recap Schedule
Line 1: Enter the approved credit from Part II, Line 2.
Line 2(a): Enter the amount of credit applied against KRS 141.0401 on Schedule TCS, Part II, Column E.
Line 2(b): Enter the amount of credit applied against KRS 141.040 on Schedule TCS, Part II, Column F.
Line 2(c): Enter the amount of credit applied against KRS 141.020.
Line 3: Subtract the greatest amount from Lines 2(a), 2(b), or 2(c) from Line 1 to determine the credit remaining for KRS 136.120.
Important Rules
The credit must be used on the return for the period in which the coal was purchased. It cannot be carried forward to another year. Corporations and limited liability pass-through entities may use the credit against both income tax and LLET, but the LLET credit cannot reduce the tax below the $175 minimum.
Recordkeeping
Keep records that show the coal purchases were subject to Kentucky coal severance tax, including invoices and proof of payment, for at least five years.
Pass-Through Entity Reporting
If the credit is claimed by a pass-through entity, the entity must include each partner’s, member’s, or shareholder’s pro rata share of the approved credit on Schedule K-1. The entity must also notify the Department of Revenue electronically about all owners who may claim the credit.
The email submission must include a plain text or plain ASCII attachment listing each owner’s name, address, telephone number, identification number, and distributive share of the credit.
Filing Reminder
Attach the certification letter from the Department of Revenue to the return filed with the credit claim. Make sure the schedule is complete, the coal tonnage is supported by records, and the recap schedule matches the tax return exactly.