Form PTE Instructions - Kentucky Pass-Through Entity (incl. PTET election)

# PURPOSE OF THE INSTRUCTIONS

These instructions have been designed for pass-through entities: S-corporations, partnerships, and general partnerships , which are required by law to file a Kentucky income tax and LLET return. Form PTE is complementary to the federal forms 1120S and 1065.

# HOW TO OBTAIN ADDITIONAL FORMS

Forms and instructions are available at all Kentucky Taxpayer Service Centers (page 24). They may also be obtained by writing FORMS, Department of Revenue, 501 High Street, Station 23B, Frankfort, KY 40601, or by calling 502-564-3658. Forms can be downloaded from www.revenue.ky.gov .

KENTUCKY TAX LAW CHANGES Enacted by the 2025 Regular Session of the

# Kentucky General Assembly

Reduction of Individual Income Tax Rate - House Bill (HB) 1 established the individual income tax rate at 3.5% for taxable years beginning on or after January 1, 2026. Internal Revenue Code (IRC) Update - HB 775 updated the Internal Revenue Code reference date to December 31, 2024, for taxable years beginning on or after January 1, 2025. Individual Income Tax Rate Reduction Conditions - HB 775 resulted in additional changes to the rate reduction conditions. ¡ The Budget Reserve Trust Fund will be reviewed each year and compared with the General Fund. ¡ Individual Income Tax Rate can be reduced by 0.1% 0.5% each tax year if fiscal requirements are met. ¡ All future individual income tax rate reductions must be approved by the General Assembly. Tax Credit Change for Broadband Tax Credit - HB 8 during the 2024 Regular Session of the Kentucky General Assembly created a nonrefundable and nontransferable credit against LLET and corporate income tax for the amount of sales tax paid on eligible equipment and services used in the expansion of broadband services in Kentucky. The credit is allowed for purchases made on or after January 1, 2025, but before January 1, 2029. The credit is limited to 50% of the amount of sales tax paid, after reduction for seller reimbursements. The total amount of the credit is capped at $5 million for each taxable year. Companies must complete and file an application with the department by December 31 of the calendar year in which the investment was made. The department will review and approve the allowable credit amount by February 1. KRS 141.391 Other Important Information Check the website for updated information: Press releases from the Department of Revenue provide important updates to tax information and are posted on the website Revenue.ky.gov soon after they are released. Taxpayers are advised to check the website regularly to get the most timely information on disaster relief provisions, policy updates, and other important developments. Direct Deposit: The Department of Revenue is excited to share that direct deposit will be available for requested refunds on the 2025 Kentucky 725, 720, 720U, PTE, and 740 NP-WH returns. MyTaxes Portal: T he Department of Revenue launched the new MyTaxes portal on March 14, 2025. Taxpayers and tax practitioners are encouraged to register for a MyTaxes portal account to manage payments, check balances, and receive correspondence. Please visit the MyTaxes.ky.gov Resource Center for Quick Reference Guides. The Customer Contact Center is available by phone at 502-764-5555 or email portalhelp@ky.gov.

# Kentucky Single Member LLC Individually Owned

Income and LLET Return: For 2025, eligible taxpayers may file a Kentucky 725 on the portal at MyTaxes.ky.gov. Taxpayers filing a complex 725 tax return as a provider, who claim tax credits, receive pass through income, claim cost of goods sold, and/or require an LLET continuation sheet are not eligible to file on the portal. Taxpayers meeting any one of these complex conditions must file the return electronically through an approved software vendor. 2025PTE Department of Revenue

INSTRUCTIONS KENTUCKY PASS-THROUGH ENTITY INCOME AND LLET RETURN

# Kentucky Nonresident Income Tax Withholding on

Distributive Share Income Report: For 2025, eligible taxpayers may file a Form 740NP-WH tax return on the portal at MyTaxes.ky.gov. Taxpayers filing a Form 740NP-WH tax return with more than thirty (30) PTE-WH Forms to attach must file the return electronically through an approved software vendor. Electronic Payments: Make Corporation Income Tax/ Limited Liability Entity Tax and Kentucky Non-resident Income Tax Withholding estimated, extension, and balance due payments using the MyTaxes Portal at MyTaxes.ky.gov. To make Pass-Through Entity Tax (PTET) estimated, extension, and balance due payments please visit epayment.ky.gov/EPAY.

# STATUTE REFERENCES

Kentucky Revised Statutes- Kentucky Revised Statutes are referred to in these instructions as "KRS" and can be found online at legislature.ky.gov/Law/Statutes/Pages/ default.aspx .

# Kentucky Administrative Regulations- Kentucky

Administrative Regulations are referred to in these instructions as "KAR" and can be found online at legislature.ky.gov/Law/kar/Pages/default.aspx .

# CURRENT YEAR INTEREST RATE

Pursuant to KRS 131.183, the 2026 tax interest rate has been set at seven percent (7%). The rate charged by the Kentucky Department of Revenue on unpaid taxes is nine percent (9%) and when interest is due on a refund, the rate is five percent (5%).

# KENTUCKY FORM CHANGES

Form 740 PTET - Kentucky Pass-Through Entity Tax For 2025, lines 6 and 15 were marked as reserved for future use. Line 5 was changed from "Tax before credit" to "Tax Liability". Form 740 PTET-CR - For 2025, Line 7 was changed from "Tax before credit " to " Tax Liability ". Line 8 was marked reserved for future use. Form 740 PTET-P - For 2025, added (a) and (b) to Part I to determine if a penalty is owed based on the previous year tax liability compared to the estimated payments made for the current year. Form 740-NP-WH - For 2025, line 6 was changed from "Tax before credit " to "Tax Liability". Line 7 was marked as reserved for future use. Form PTE-WH - For 2025, line 7 was changed from " Tax before credit " to " Tax Liability ". Line 8 was marked as reserved for future use. Form NRWH-P - For 2025, added (a) and (b) to Part I to determine if a penalty is owed based on the previous year tax liability compared to the estimated payments made for the current year. Schedule 8050-K - Kentucky Direct Deposit of Income, Limited Liability Entity, of Nonresident Withholding Tax Refund: File Form 8050-K with your tax return to request that the Kentucky Department of Revenue deposit your requested corporate income, Limited Liability Entity, or Nonresident Withholding Income tax refund directly into an account at any U.S. bank or other financial institution that accepts direct deposits. Schedule DS - For 2025, added Section C, Part III and updated instructions.

# Schedule KQBI - Kentucky Qualified Broadband

Investment Tax Credit Application and Schedule: Created to allow businesses to apply for the new broadband investment tax credit. Application deadline is December 31 of the calendar year in which the investment is made. The department will review and approve the allowable credit amount by February 1. Schedule RC-R - For 2025, line 14 was removed and the related instructions updated. Schedule TCS - For 2025, added the Kentucky Qualified Broadband Investment (KQBI) Tax Credit on Line 21.

The following list of filing tips is provided for your convenience to help ensure that returns are processed accurately and promptly. To avoid processing issues, please note the following: • Account Closure-There are different requirements for the Secretary of State and the Department of Revenue when ceasing operations and closing an account. It is advised that you consult with both agencies when closing a business tax account. • Account Number/FEIN- Always ensure the correct Kentucky Corporation/LLET account number and FEIN are used on the return being filed. • Payments- If making payment by check, place payments on the front of the return so that they are clearly visible. Do not leave check stubs attached to checks. Check stubs will delay the machines that sort incoming mail, which causes longer processing times. • Estimated Payments- Make estimated payments on a timely basis to avoid penalty. • EFT Payments-When making EFT payments online, use the taxable year ending, NOT the due date of the payment. • Form KBR-V- Form KBR-V is a payment voucher for e-filed returns and for payments submitted separately for paper filed returns. It is NOT an extension form. To extend a filing date, use Form 720EXT, Extension of Time to File Kentucky Corporation/LLET Return. • Extensions- Extensions are for extending the filing date only; late payment penalties and interest apply to payments made after the original due date. • Corrected K-1's- Adjustments to LLET or distributive share require that corrected Kentucky K-1's are sent to all partners, members, or shareholders for proper compliance by taxpayers. • Schedule A- Do not check the box on Schedule A, Apportionment and Allocation, indicating the use of an alternative allocation and apportionment formula if the corporation has not received written approval from the Department of Revenue. If written approval has been received, a copy of the letter from the Department of Revenue must be attached to the return when filed. • Incorrect Year Forms- Returns submitted on the wrong year form on or before the due date will be accepted as timely filed, but will require the return to be submitted on the correct year form before the return can be processed. • Additional errors that delay processing returns: ¡ Incorrect form submitted ¡ Incorrect tax exemption code ¡ Incomplete information ¡ Missing forms or schedules ¡ Incorrect taxable year end ¡ Failure to include payment of tax due with the return ¡ Omitting Form 720EXT when paying with an extension ¡ Omitting Form KBR-V when paying for e-filed return Filing Tips and Checkpoints Helpful Tips for Electronic Filing and Paying • Mandatory E-File and E-Pay if Gross Receipts ≥ $1,000,000-For tax years beginning on or after October 1, 2021, corporations and pass-through entities are required to file and submit payments electronically if their federal gross receipts are one million dollars ($1,000,000) or greater. This applies to Forms 720, 720U, PTE, 725, and 740NP-WH. • If your return or payment is rejected for an invalid Kentucky Corporation/LLET Account Number or Federal Employer Identification Number (FEIN), please complete Form 20A100, "Declaration of Representative," and contact our Registration Section at 502-564- 3306 for instructions on how to obtain an account number. • A person, taxpayer, or tax preparer required to electronically file a return, report, or statement may request a waiver as authorized by KRS 131.250(2). Form 8948 (K-C): Request for Waiver of Electronic Filing Requirement must be submitted via e-mail to KRC.WEBResponseCorporationTax@ky.gov or DORWEBRESPONSEPASSTHROUGHENTITY@ky.gov for approval before filing on paper. A copy of the approved form must be attached to the paper-filed return. • Online Payment Options-Visit MyTaxes.ky.gov for details on how to electronically pay your tax. To make payments, the FEIN is required along with the Kentucky Corporation/LLET account number. • Payment by Check-If an electronic payment is not possible, a Form KBR-V is required when submitting a paper check for payment of the tax due on an electronically filed return and for a paper filed return when the payment is submitted separately from the return. • Direct debit is an option for electronically filed forms. • To determine which forms are supported by your software, please consult with the company that develops your software.

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# IMPORTANT

Pass-through entities must create a Kentucky Form 4562, Schedule D and Form 4797 by converting federal forms. Schedule 4562 Depreciation- For property placed in service after September 10, 2001, Kentucky depreciation (§168) is determined per the Internal Revenue Code (IRC) in effect on December 31, 2001. Section 179 Deduction- For property placed in service after September 10, 2001, but prior to January 1, 2020, only the expense deduction ($25,000) allowed under §179 of the IRC in effect on December 31, 2001, exclusive of any amendments made subsequent to that date, is allowed. For property placed in service on or after January 1, 2020, only the expense deduction ($100,000) allowed under §179 of the IRC in effect on December 31, 2003, exclusive of any amendments made subsequent to that date, is allowed, except that the phase-out provisions of §179 of the IRC limiting the qualifying investment in property, shall not apply. For 2020 returns and forward, any pass-through entity that for federal purposes elects in the current taxable year or has elected in past taxable years any of the following will have a different depreciation and IRC §179 expense deduction for Kentucky: • MACRS bonus depreciation; • IRC §179 expense deduction in excess of $25,000 for property placed in service after September 10, 2001, but prior to January 1, 2020; or • IRC §179 expense deduction in excess of $100,000 for property placed in service on or after January 1, 2020. If a pass-through entity has taken MACRS bonus depreciation or IRC §179 expense deduction in excess of the amounts outlined above for any year, federal and Kentucky differences will exist and the differences will continue through the life of the assets. Important: If a pass-through entity has not taken MACRS bonus depreciation or the IRC §179 expense deduction in excess of the amounts outlined above for any taxable year, then no adjustment will be needed for Kentucky income tax purposes. If federal Form 4562 is required to be filed for federal income tax purposes, a copy must be submitted with Form PTE to substantiate that no adjustment is required. Determining and Reporting Depreciation and IRC §179 Deduction Differences- 1. The depreciation from federal Form 1120S, Line 14 or Form 1065, Line 16(a) and depreciation claimed on federal Form 1125-A or elsewhere on Form 1120S or Form 1065 must be included on Form PTE, Part I, Line 3. If federal Form 4562 is required to be filed for federal income tax purposes, a copy must be attached to Form PTE. 2. Convert federal Form 4562 to a Kentucky form by entering Kentucky at the top center of the form above Depreciation and Amortization. Compute Kentucky depreciation (§168) per the IRC in effect on December 31, 2001, by ignoring the lines and instructions regarding the special depreciation allowance. NOTE: For Kentucky purposes, for property placed into service after September 10, 2001, but prior to January 1, 2020, the maximum IRC §179 deduction amount on Line 1 is $25,000 and the threshold cost of IRC §179 property on Line 3 is $200,000. For property placed into service after September 10, 2001, but prior to January 1, 2020, the maximum allowable IRC §179 deduction for Kentucky purposes is reduced dollar for dollar by the amount by which the cost of qualifying IRC §179 property placed in service during the year exceeds the threshold. In determining the IRC §179 deduction for Kentucky the income limitation on Line 11 should be determined by using Kentucky net income before the IRC §179 deduction instead of federal taxable income. For Kentucky purposes, for property placed into service on or after January 1, 2020, the maximum IRC §179 deduction amount on Line 1 is $100,000 and the phaseout threshold does not apply for purposes of determining Kentucky depreciation. 3. The pass-through entity must attach the Kentucky Form 4562 to Form PTE, and the amount from Kentucky Form 4562, Line 22 must be included on Form PTE, Part I, Line 13. A Kentucky Form 4562 must be filed for each year, even though a federal Form 4562 may not be required. Schedule 4797 and Schedule D Gains/Losses from Disposition of Assets- Determining and Reporting Differences in Gain or Loss From Disposition of Assets-If during the year the pass-through entity disposes of assets on which it has taken the special depreciation allowance or the additional IRC §179 deduction for federal income tax purposes, the pass-through entity will need to determine and report the difference in the amount of gain or loss on such assets as follows: 1. Convert federal Schedule D (Form 1120S or Form 1065) and other applicable federal forms to Kentucky forms by entering Kentucky at the top center of the form, and compute the Kentucky capital gain or (loss) from the disposal of assets using Kentucky basis. Enter the amount from Kentucky Schedule D, Line 7 on Form PTE, Schedule K, Section A, Line 4(d) or 7. Enter the amount from Kentucky Schedule D, Line 15 on Form PTE, Schedule K, Section A, Line 4(e) or 7. Federal Schedule D (Form 1120S or Form 1065) filed with the federal return and the Kentucky Schedule D must be attached to Form PTE. 2. If the amount reported on federal Form 1120S, Line 4 or Form 1065, Line 6 (from Form 4797, Line 17) is a gain, enter this amount on Form PTE, Part I, Line 14. If the amount reported on federal Form 1120S, Line 4 or 1065, Line 6 (from Form 4797, Line 17) is a loss, enter this amount on Form PTE, Part I, Line 5. Convert federal Form 4797 and other applicable federal forms to Kentucky forms by entering Kentucky at the top center of the form and compute the Kentucky gain or (loss) from the sale of business property listing Kentucky basis. If the amount on

# Kentucky Form 4797, Line 17 is a gain, enter this amount on

Form PTE, Part I, Line 6. If the amount on Kentucky Form 4797, Line 17 is a loss, enter this amount on Form PTE, Part I, Line 15. Federal Form 4797 filed with the federal return and the Kentucky Form 4797 must be attached to Form PTE.

Tax Treatment of S Corporation and Shareholder(s) A corporation which elects S corporation treatment for federal income tax purposes per §§1361(a) and 1361(b) of the IRC must file as an S corporation for Kentucky income tax purposes. For taxable years beginning on or after January 1, 2007, an S corporation is classified as a limited liability pass-through entity per KRS 141.010(22). For taxable years beginning on or after January 1, 2007, an annual limited liability entity tax (LLET) must be paid by every corporation and every limited liability pass-through entity doing business in Kentucky on all Kentucky gross receipts or Kentucky gross profits per KRS 141.0401(2), unless specifically excluded. See LLET Exemption Codes on page 10 of these instructions. For tax years beginning on or after January 1, 2007, an S corporation is required: (1) to submit installments of tax on the recapture of LIFO reserves per IRC §1363(d); (2) pay tax on built-in gains per IRC §1374; and (3) pay tax on net passive investment income per IRC §1375. The tax rate imposed on the LIFO recapture, built-in gains, and net passive investment income is five percent (5%). KRS 141.040(4) In determining tax per KRS Chapter 141, a resident individual that is a shareholder of an S corporation must take into account the shareholder's total distributive share of the S corporation's items of income, loss, and deduction. In determining tax per KRS Chapter 141, a nonresident individual that is a shareholder of an S corporation must take into account the shareholder's total distributive share of the S corporation's items of income, loss, and deduction multiplied by the apportionment fraction. KRS 141.206(11) and KRS 141.206(7) and (8) Resident and nonresident individual shareholders are entitled to a nonrefundable LLET credit against tax imposed under KRS 141.020 (Kentucky individual income tax). The nonrefundable LLET credit allowed shareholders is the shareholders' proportionate share of the LLET for the current year after the subtraction of any credits identified in KRS 141.0205 and reduced by $175. The credit allowed shareholders may be applied to the income tax assessed on income from the S corporation. Any remaining credit from the S corporation will be disallowed. KRS 141.0401(3)

# GENERAL INFORMATION

Internal Revenue Code Reference Date-Kentucky's Internal Revenue Code (IRC) reference date is December 31, 2024, exclusive of any amendments made subsequent to that date, other than amendments that extend provisions in effect on December 31, 2024, that would otherwise terminate, for purposes of computing corporation and individual income tax, except for depreciation differences per KRS 141.0101. KRS 141.010(21)

# Kentucky Tax Registration Application-Prior to doing business in

Kentucky, each entity should complete a Kentucky Tax Registration Application, Form 10A100, to register for a Kentucky Corporation/ LLET Account Number. This account number will be used for filing returns and remitting the corporation income tax per KRS 141.040 and LLET per KRS 141.0401. Register your business online at MyTaxes.ky.gov.

# NEW USER

To register for new Kentucky tax accounts: Go to MyTaxes.ky.gov. 1. Click on Register a new account button. Complete all required fields and complete all necessary verification steps. 2. After creating a new account, log in using your new credentials. Once logged in, the KY DOR Taxes Dashboard will open. 3. Click on MyTaxes and the home page will open. 4. Click on Transactions at the top of the page; a dropdown menu appears. 5. Select Submit Transactions . 6. Select New business Registration from the displayed options. 7. Follow the screen prompts to register for Kentucky tax accounts. KENTUCKY ONLINE GATEWAY (KOG) USER To access the Mytaxes.ky.gov Portal using your existing KOG account: 1. Go to MyTaxes.ky.gov. 2. Click Log In Now, then enter your username and password. Complete all necessary verification steps. 3. Once logged in, the KY DOR taxes Dashboard will open. 4. Click on Transactions at the top of the page; a dropdown menu appears. 5. Select Submit Transactions . 6. Select New business Registration from the displayed options. 7. Follow the screen prompts to register for Kentucky tax accounts.

# KENTUCKY TAX ACCOUNT HOLDER

To access your existing Kentucky tax Accounts through the MyTaxes.ky.gov Portal: 1. Go to MyTaxes.ky.gov. 2. Click Log In Now, then enter your username and password. Complete all necessary verification steps. 3. After creating a new account, log in using your new credentials. Once logged in, the KY DOR Taxes Dashboard will open. 4. Click on MyTaxes and your home page will open. 5. Click here in the blue box; a screen with ID verification options appears. 6. Select the method to access your accounts. You can: a. Enter information from your most recently filed tax return field after March 14, 2025: Enter the requested information. This will allow you immediate access to the accounts you are authorized to view on the portal Or b. Receive a PIN letter: If you do not have your most recent tax return, select " I do not have enough information about my business and I need a PIN letter. " A PIN Letter will be mailed to the address we have on file. The PIN letter will have instructions on how to access your business tax accounts online. Please allow up to 14 days for your PIN letter to arrive. The paper application is available by calling the Department of revenue, Division or Registration at 502-564-3306, or can be downloaded at revenue.ky.gov (click on Find a Form, and search for 10A100). The application may be faxed to 502-227-0772 or emailed to DOR.Registration@ky.gov .

Withholding is not required if: (a) the partner, member, or shareholder is exempt from withholding per KRS 141.206(6)(a); (b) the partner or member is exempt from Kentucky income tax per KRS 141.020; (c) the pass-through entity is a qualified investment partnership per KRS 141.206(14), and the partner, member, or shareholder is an individual; or (d) the partner or member is a pass-through entity. A pass-through entity required to withhold and file a return on Kentucky income tax per KRS 141.206 must make estimated tax payments if required by KRS 141.207. If the pass-through entity is required to make estimated tax payments visit MyTaxes.ky.gov for details on how to electronically pay your tax. If unable to pay electronically, use Form 740NP-WH-ES (Kentucky Estimated Tax Voucher). The reporting of a nonresident individual's net distributive share income and withholding on Form 740NP-WH at the rate of 4.0% (.04) will satisfy the filing requirements of KRS 141.180 for a nonresident individual partner, member, or shareholder whose only Kentucky source income is net distributive share income. The partners', members', or shareholders' distributive share of income must include all items of income or deduction used to compute adjusted gross income on the Kentucky return that are passed through to the partner, member, or shareholder by the pass-through entity, including but not limited to interest, dividends, capital gains or losses, guaranteed payments, and rents (KRS 141.206(8)). The nonresident individual partner, member, or shareholder may file a

# Kentucky Individual Income Tax Return Nonresident or Part-Year

Resident (Form 740-NP) or a Kentucky Fiduciary Income Tax Return (Form 741) to take advantage of the credits and deductions. A pass-through entity must file Form 740NP-WH and complete a Form PTE-WH for each nonresident individual partner, member, or shareholder. Form 740NP-WH with a copy of each Form PTE-WH must be filed and paid with the Department of Revenue by the 15th day of the fourth month following the close of the taxable period. Provide two copies of Form PTE-WH to each partner, member, or shareholder. Who Must File-LLET and Corporation Income Tax LLET-The limitations imposed and protections provided by the United States Constitution or Pub. L. No. 86-272 do not apply to the limited liability entity tax imposed by KRS 141.0401. A Kentucky Pass-Through Entity Income and LLET Return (Form PTE) must be filed by every pass-through entity: (a) organized under the laws of this state; (b) having its commercial domicile in this state; (c) owning or leasing property in this state; (d) having one or more individuals performing services in this state; (e) maintaining an interest in a pass-through entity doing business in this state; (f) deriving income from or attributable to sources within this state, including deriving income directly or indirectly from a trust doing business in this state, or deriving income directly or indirectly from a single member limited liability company that is doing business in this state and is disregarded as an entity separate from its single member for federal income tax purposes; or (g) directing activities at Kentucky customers for the purpose of selling them goods or services. KRS 141.010(13), KRS 141.0401, and KRS 141.206 Disregarded Entities -A Qualified Sub Chapter S Subsidiary (QSSS) and a single member limited liability company (LLC) are treated in the same manner as they are treated for federal income tax purposes. Therefore, a QSSS or a single member LLC that is disregarded for federal income tax purposes should be included in the return filed by its single member (owner). All disregarded entities included in the return should be listed on the Schedule DE and attached to the return. KRS 141.010(13) and KRS 141.200(10) Pass-through Entities -A pass-through entity doing business in Kentucky solely as a partner or member in a pass-through entity will file Form PTE per KRS 141.010, 141.120, and 141.206. (See Schedule A-Apportionment and Allocation Instructions.) Nonresident Withholding Return (Form 740NP-WH) A partner or member that is a pass-through entity is not subject to withholding. "Pass-through entity" is defined by KRS 141.010(28). KRS 141.206(4) provides that every pass-through entity required to file a return under KRS 141.206(1), except publicly traded partnerships defined in KRS 141.0401(6)(a)18. and (b)14., must withhold Kentucky income tax on the distributive share, whether distributed or undistributed, of each nonresident individual partner, member, or shareholder. Withholding is at the highest rate provided in KRS 141.020.

Accounting Procedures -Kentucky income tax law requires a pass-through entity to report income on the same calendar or fiscal year and to use the same methods of accounting required for federal income tax purposes. Any federally approved change in accounting periods or methods must be reported to the Department of Revenue. Check the applicable box on page 1, Item G, and attach a copy of the federal approval to the return when filed. KRS 141.140 Mailing/Payment-Only include payment for corporation income tax and/or LLET. No payment is due for general partnerships filing Form PTE. Mail the return with payment to: Frankfort, KY 40620-0021 Make the check(s) payable to the Kentucky State Treasurer. Mail returns with no tax due or refund requests to: Frankfort, KY 40618-0010 Filing/Payment Date-A pass-through entity return must be filed and payment must be made on or before the 15th day of the fourth month following the close of the taxable year. KRS 141.160, KRS 141.220, and 103 KAR 15:050 If the filing/payment date falls on a Saturday, Sunday, or a legal holiday, the filing/payment date is deemed to be on the next business day. KRS 446.030

# Kentucky Extensions -A six-month extension of time to file a

Kentucky Pass-through Entity Income and LLET Return (Form PTE) may be obtained by filing Form 720EXT by the original due date of the return. If a payment is made with an extension, Kentucky Form 720EXT must be used. For further information, see the instructions for Form 720EXT. 103 KAR 15:050 A General Partnership may file Form 40A102, Application for Extension of Time to File Individual, General Partnership, and Fiduciary Income Tax Returns, by the original due date of the return. Include a copy of the submitted Form 40A102 with the return when filed. Federal Extension-An S corporation or limited liability pass-through entity granted an extension of time for filing a federal income tax return will be granted the same extension of time for filing a Kentucky Pass-through Entity Income and LLET Return for the same taxable year if a copy of the federal Form 7004 is attached to the Kentucky return when it is filed. A copy of the federal extension submitted after the return is filed does not constitute a valid extension, and late filing penalties will be assessed. A copy of the federal Form 7004 should not be mailed to the Department of Revenue before filing the return. 103 KAR 15:050 NOTE: An extension of time to file a return does not extend the due date for the payment of tax. Required Forms and Information-A pass-through entity must enter all applicable information on Form PTE, enclose a schedule for each line item or line item instruction which states "attach schedule," and include the following Kentucky forms or schedules, if applicable:

# Kentucky Forms and Schedules

1. Pass-through Entity Income and LLET Return (Form PTE) 2. Kentucky Shareholder's Share of Income, Credits, Deductions, Etc.-Schedule K-1 (Form PTE) 3. Apportionment and Allocation (Schedule A) 4. Limited Liability Entity Tax-Continuation Sheet (Schedule L-C) 5. Cost of Goods Sold (Schedule COGS) 6. Tax Credit Summary Schedule (Schedule TCS) 7. Related Party Costs Disclosure Statement (Schedule RPC) 8. Disregarded Entity Schedule, if applicable (Schedule DE) Required Federal Forms and Schedules All pass-through entities must provide a copy of the following federal forms submitted to the Internal Revenue Service. Not every form below applies to every pass-through entity. Only attach the forms and schedules that apply to your company's specific tax situation. 1. Form 1120S or 1065, all pages 2. Form 1125-A-Cost of Goods Sold 3. Form 4797-Sales of Business Property 4. Schedule D-Capital Gains and Losses 5. Schedules for items on Form 1120S or 1065, Schedule L, which state, "attach schedule." 6. Form 4562-Depreciation and Amortization 7. Form 8825-Rental Real Estate Income and Expenses of a Partnership or an S Corporation Electronic Funds Transfer (EFT) -The Department of Revenue accepts electronically filed Corporation Income Tax/Limited Liability Entity Tax estimated tax voucher payments and extension payments for corporation income tax and limited liability entity tax. Before paying by EFT, the pass-through entity must have a valid Kentucky Corporation/LLET account number and have registered with the Department of Revenue to pay using EFT. Using an incorrect account number, such as an account number for withholding or sales and use tax, may result in the payment being credited to another taxpayer's account. When making EFT payments online, use the taxable year ending, NOT the due date of the payment. For more information, contact the Department of Revenue at 800-839-4137 or 502-564-6020. The EFT registration form is available at www.revenue.ky.gov.

Estimated Taxes The Corporation Income/Limited Liability Entity Tax Estimated Tax Voucher, Form 720ES, is used to submit estimated tax payments for corporation income tax and LLET. See Electronic Funds Transfer (EFT). If the pass-through entity is required to make estimated tax payments and needs Form 720ES vouchers, contact the Department of Revenue at 502-564-3658. Estimated Tax Payments-A pass-through entity must make estimated tax installments if its combined tax liability under KRS 141.040 and KRS 141.0401 can reasonably be expected to exceed $5,000. Estimated tax installments are required as follows: If the estimated tax is reasonably expected to exceed $5,000, 25% of the estimated tax must be paid by the 15th day of the 4th month, 15th day of the 6th month, 15th day of the 9th month, and the 15th day of the 12th month of the tax year. Recalculating Estimated Tax-If after the pass-through entity calculates and pays its estimated tax, it finds that its tax liability for the year will be more or less than originally estimated, it may have to recalculate its required installments. If earlier installments were underpaid, the pass-through entity may owe a penalty. An immediate payment should be made to reduce the amount of penalty resulting from the underpayment of earlier installments, whether caused by a change in estimate, failure to make a payment, or a mistake. Penalty-Failure to make estimated installments, pay an estimated installment in full, or pay estimated installments timely will result in an addition to tax that will be considered a penalty under KRS 141.044. The tax interest rate plus 2 percent identified under KRS 131.183 is the underpayment rate used to calculate the penalty. The entity may use Form 2220-K to determine the penalty. KRS 141.044 and KRS 141.990 Amended Return-To correct Form PTE as originally filed, file an amended Form PTE and check the appropriate box on page 1, Item G. If the amended return results in a change in income or a change in the distribution of any income or other information provided to partners or shareholders, an amended Schedule K-1 (Form PTE) must also be filed with the amended Form PTE and a copy given to each partner or shareholder. Check Item E(2) on each Schedule K-1 to indicate that it is an amended Schedule K-1. Internal Revenue Service Audit Adjustments-Partnerships and partners must report final federal adjustments arising from a partnership level audit or an administrative adjustment request and make any required payments no later than ninety (90) days after the final determination date by filing with the department a completed federal adjustments report. Use Form PTE or prior year's Form 765 for reporting federal audit adjustments, check the Amended Return box, and attach the complete Revenue Agent Report (RAR) and all other information required by the department. An audited partnership must also notify each of its direct partners of their distributive share of the final federal adjustments, including all information required by the department, and it must file an amended withholding return for direct partners as required under KRS 141.206 and pay the additional amount of tax that would have been due had the final federal adjustments been reported properly as required. No later than 180 days after the final determination date, each direct partner taxed under KRS 141.020 or KRS 141.040 must file a federal adjustments report showing their distributive share of the adjustments reported to them by the partnership and pay any additional tax due as if final federal adjustments had been properly reported, plus any applicable penalty and interest. The direct and indirect partners of an audited partnership that are tiered partners and all of the partners of those tiered partners that are subject to tax under KRS 141.020 and 141.040 are subject to these reporting and payment requirements. If an audited partnership properly reports final federal adjustments within 90 days of the final determination date, it may make an election to pay, within 180 days of the final determination date, an amount in lieu of taxes, as determined under KRS 141.211(4)(b), owed by its direct and indirect partners. S-Corporations must report and pay income tax due resulting from final federal adjustments arising from any action by the Internal Revenue Service or reported by the taxpayer on a timely filed amended federal income tax return by filing a federal adjustments report with the department for the reviewed year and, if applicable, paying any additional tax owed within 180 days after the final determination date. Use Form PTE or prior year's Form 720S for reporting federal audit adjustments, check the Amended Return box, and attach the complete Revenue Agent Report (RAR) and all other information required by the department. The department may assess any amount of tax, interest, and penalties due arising from the federal adjustments for a timely filed federal adjustments report or amended Kentucky tax return up to one year following the date the federal adjustments report or amended Kentucky return was filed. If a taxpayer fails to file the federal adjustments report, or the filed federal adjustment report omits final federal adjustments or understates the correct amount of tax owed, the department may assess any amounts of tax, interest, and penalties arising from the federal adjustments up to six years following the final determination date. A taxpayer may request a refund or credit of tax arising from federal adjustments made by the IRS by the later of four years after the date the tax was paid or up to one year from the date the federal adjustments report was required to be reported to the department. KRS 141.210, KRS 141.211, KRS 141.235, and KRS 134.580 Mail returns with federal audit adjustments (RAR) to: Corporate Governmental Programs Section P. O. Box 1074, Station 68 Frankfort, KY 40602-1074 Interest -Interest at the tax interest rate plus two percent is applied to corporation income and LLET liabilities not paid by the date prescribed by law for filing the return (determined without regard to extensions thereof). See page 2 for the current year rate.

Item A-Check the box that applies to the entity type filing this return. Item B-Enter the pass-through entity's federal identification number (FEIN). See federal Publication 583 if the pass-through entity has not obtained this number. Item C-Enter the Kentucky Corporation/LLET Account Number on the applicable line at the top of each form and schedule and on all checks and correspondence. This number was included in correspondence received from the Department of Revenue at the time of registration. Using an incorrect account number, such as an account number for withholding or sales and use tax or the Kentucky Secretary of State organization number, may result in the payment and/or return being credited to another taxpayer's account. If the Kentucky Corporation/LLET Account Number is not known, complete Form 20A100, "Declaration of Representative," and contact Registration at 502-564-3306 for instructions on how to obtain an account number. Failure to provide the FEIN and/or Kentucky Corporation/LLET Account Number may result in a delay of processing the return, including any requested refunds. Item D-LLET Exemption Code If the pass-through entity is exempt from LLET, enter one of the following two-digit codes in the space provided. Failure to include a valid code will delay the processing of the tax return and may result in a tax notice for assessment of tax, penalties, and interest. NOTE: LLET Exempt codes are not applicable to general partnerships.

# REASON CODE REASON

10 A public service corporation subject to tax under KRS 136.120. (S corporations only) 12 A property or facility which has been certified as a fluidized bed energy production facility as defined in KRS 211.390. 13 An alcohol production facility as defined in KRS 247.910. 18 A personal service corporation as defined in §269A(b)(1) of the Internal Revenue Code. (S corporations only) 21 A qualified investment partnership as defined in KRS 141.206(14)(a). Penalties-Refer below. Failure to file a Kentucky Pass-Through Entity Income Tax and LLET Return by the filing date including extensions-2 percent of the tax due for each 30 days or fraction thereof that the return is late (maximum 20 percent). The minimum penalty is $10 for each tax. KRS 131.180(1) Failure to pay at least 75 percent of income tax and/or LLET due by the payment due date-2 percent of the tax due for each 30 days or fraction thereof that the payment is overdue (maximum 20 percent). The minimum penalty is $10 for each tax. KRS 131.180(2) Failure to make estimated installments, pay an estimated installment in full, or pay estimated installments timely-The addition to tax is considered a penalty under KRS 141.044. The underpayment rate is the tax interest rate plus 2 percent identified under KRS 131.183. KRS 141.044 Failure or refusal to file a Kentucky Pass-Through Entity Income Tax and LLET Return or furnish information requested in writing-5 percent of the tax assessed for each 30 days or fraction thereof that the return is not filed or the information is not submitted (maximum 50 percent). The minimum penalty is $100. KRS 131.180(3) Negligence-10 percent of the tax assessed. KRS 131.180(6) Fraud-50 percent of the tax assessed. KRS 131.180(7) Cost of Collection Fees-Fee percentage determined per KRS 131.440(1)(a) imposed on all taxes which become due and owing for any reporting period, regardless of when due. These collection fees are in addition to all other penalties provided by law. KRS 131.440(1)(a) Records Retention-The Department of Revenue deems acceptable virtually any records retention system which results in an essentially unalterable method of records storage and retrieval, provided: (a) authorized Department of Revenue personnel are granted access, including any specialized equipment; (b) taxpayer maintains adequate back-up; and (c) taxpayer maintains documentation to verify the retention system is accurate and complete.

# FORM PTE-SPECIFIC INSTRUCTIONS

Period Covered-File the 2025 return for calendar year 2025 and fiscal years that begin in 2025. For a fiscal year, fill in the taxable period beginning and ending dates at the top of Form PTE. NOTE: For 52/53 week filers, fill in the taxable period beginning and ending dates as specified below: • Begin on the first day of the calendar month beginning nearest to the first day of the 52/53-week tax year. • End on the last day of the calendar month ending nearest to the last day of the 52/53-week tax year.

Item E-Income Tax Exemption Code If the pass-through entity is exempt from income tax, enter the following two-digit code in the space provided. Failure to include a valid code will delay the processing of the tax return and may result in a tax notice for assessment of tax, penalties, and interest. Item F-3-Factor Apportionment Codes If the entity is defined in KRS 141.121 and required to use a three (3)-factor apportionment, it must enter one of the following two-digit codes in the space provided. These entities continue to use a three (3)-factor apportionment formula as provided in KRS 141.901 for tax years beginning on or after January 1, 2018. Failure to include a valid code will delay the processing of the tax return and may result in a tax notice for assessment of tax, penalties, and interest. Item G-Check the applicable boxes: • Publicly Traded Partnership- The pass-through entity is a publicly traded partnership as provided by KRS 141.0401(6) (b)(14). • Qualified Investment Partnership -The pass-through entity is a qualified investment partnership per KRS 141.206(14)(a). • LLC-The pass-through entity is a Limited Liability Company (LLC). • LP-The pass-through entity is a Limited Partnership (LP). • LLP-The pass-through entity is a Limited Liability Partnership (LLP). • Initial Return-This is the pass-through entity's first Kentucky tax return filed. Complete questions 1 and 2 on Schedule Q-Questionnaire. • Change of Accounting Period -The entity has changed its accounting period since it filed its prior year Kentucky tax return. Attach a statement to the tax return showing the entity's taxable year end before the change and the new taxable year end. If the entity received written approval from the Internal

# REASON CODE REASON

22 This return contains only the LLET as the S corporation is exempt from income tax as provided by Public Law 86-272.

# REASON

CODE 3-FACTOR APPORTIONMENT CODES 31 Communications service as defined in KRS 136.602; 32 Cable service as defined in KRS 136.602; 33 Internet service as defined in 47 U.S.C. sec. 151; or 34 Other (attach statement) Revenue Service to change its taxable year, attach a copy of the document. • Amended Return-This is an amended tax return. Provide an explanation of all changes in Part V-Explanation of Amended Return Changes. • Short-period Return -This return is for a period of less than one year and not an initial return or a final return. Check the appropriate box in Part IV-Explanation of Final Return and/ or Short-Period Return. • Final Return-This is the pass-through entity's final Kentucky tax return. Check the appropriate box in Part IV-Explanation of Final Return and/or Short-Period Return. Item H-Enter the number of K-1's issued or received and the number of owners included in this return. Name and Address-Print or type the pass-through entity's name as set forth in the charter or articles of organization. For the address, include the suite, room, or other unit number after the street address. If the U.S. Postal Service does not deliver mail to the street address and the entity has a P.O. Box, show the box number instead of the street address. Change of Name-Check the box if the pass-through entity's name has changed since the filing of the prior year Kentucky tax return. Attach a statement to the tax return providing the pass-through entity's name reflected on the prior year Kentucky tax return. Telephone Number-Enter the business telephone number of the principal officer or chief accounting officer signing this return. State of Organization -Enter the state of organization. Date of Organization -Enter the date of organization. Principal Business Activity in Kentucky -Enter the entity's principal business activity in Kentucky. North American Industrial Classification System (NAICS) - Enter your six-digit NAICS code. To view a complete listing of NAICS codes, visit the Census Bureau at https://www.census. gov/naics/ . PART I-ORDINARY INCOME (LOSS) COMPUTATION

# Line 1-Enter the amount from federal Form 1120S, Line 22, or

Form 1065, Line 23 ordinary income (loss) from trade or business activities. Attach Form 1120S or Form 1065, all pages. Additions to Federal Ordinary Income -Lines 2 through 10 itemize additional income or disallowed deductions which are differences between federal ordinary income and Kentucky ordinary income. Line 2-Enter state taxes measured in whole or in part by gross or net income. "State" means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States or any foreign country or political subdivision thereof. Attach a schedule reflecting the total taxes deducted on federal Form 1120S or 1065. KRS 141.039(2)(c)

# Line 3- See instructions on page 5 regarding depreciation and

IRC §179 deduction differences, and if applicable, include the total of depreciation amounts from Form 1120S, Line 14 or Form 1065, Line 16(a), Form 1125-A and elsewhere on the return (do not include the IRC §179 deduction). If federal Form 4562 is required to be filed for federal income tax purposes, a copy must be attached.

# Line 4-Enter related party expense additions from Schedule RPC,

Part II, Section B, Line 1. Line 5- Enter the federal loss from federal Form 1120S, Line 4 or federal Form 1065, Line 6. If the loss from Form 4797, Line 17 is the same for both federal and Kentucky, do not make an entry on this line.

# Line 6- Enter the Kentucky gain from Kentucky Form 4797, Line

17. If the gain from Form 4797, Line 17 is the same for both federal and Kentucky, do not make an entry on this line.

# Line 7-Enter federal allowable depletion from federal Form 1120S,

Line 15 or federal Form 1065, Line 17. Do not deduct depletion for oil and gas properties as each partner, member, or shareholder figures depletion on oil and gas properties. If the depletion is the same for both federal and Kentucky, do not make an entry on this line.

Line 8- Enter the difference of the Kentucky distributive share income amounts from Kentucky Schedule(s) K-1 in excess of federal distributive share amounts from federal Schedule(s) K-1. Line 9- Enter the addition to federal taxable income equal to the excess of Kentucky taxable income over federal taxable income resulting from amendments to the IRC (excluding amendments affecting depreciation and the IRC §179 deduction) subsequent to the applicable IRC date. Attach a schedule to the tax return showing the detail of the addition, including the related IRC section(s). Line 10-Enter any other additions to federal income not reported on Lines 2 through 9, and attach an explanation to the tax return. Line 11-Enter the total of Lines 1 through 10. Subtractions from Federal Ordinary Income -Lines 12 through 19 itemize additional deductions allowed which are differences between federal ordinary income and Kentucky ordinary income. Line 12-Reserved for future use. Line 13 -Enter Kentucky depreciation (do not include IRC §179 deduction). See instructions on page 5 regarding depreciation and IRC §179 deduction differences, and if applicable, Kentucky Form 4562 must be attached. Line 14- Enter the federal gain from federal Form 1120S, Line 4 or federal Form 1065, Line 6. If the gain from Form 4797, Line 17 is the same for both federal and Kentucky, do not make an entry on this line.

# Line 15-Enter the Kentucky loss from Kentucky Form 4797, Line

17. If the loss from Form 4797, Line 17 is the same for both federal and Kentucky, do not make an entry on this line. Line 16- Enter Kentucky allowable depletion using Kentucky taxable income and deductions. If the depletion is the same for both federal and Kentucky, do not make an entry on this line. To determine the allowable depletion deduction for Kentucky purposes, the percentage limitations per the IRC must be applied using Kentucky taxable income and deductions. Line 17- Enter the difference of the federal distributive share income amounts from federal Schedule(s) K-1 in excess of Kentucky distributive share amounts from Kentucky Schedule(s) K-1. Line 18-Enter the subtraction from federal taxable income equal to the excess of federal taxable income over Kentucky taxable income resulting from amendments to the IRC (excluding amendments affecting depreciation and the IRC §179 deduction) subsequent to the applicable IRC date. Attach a schedule to the tax return showing the detail of the subtraction, including the related IRC section(s). Line 19- Enter any other subtractions from federal income not reported on Lines 12 through 18, and attach an explanation to the tax return. Line 20- Enter the total of Lines 12 through 19. Line 21-Subtract Line 20 from Line 11.

# PART II-LLET COMPUTATION

General Partnerships- Part II-LLET COMPUTATION is not required. Except for Schedule L, Sections C, D, and E, the rest of the return and schedules must be completed. Line 1-Enter the amount from Schedule L, Section E, Line 1.

# Line 2 -Enter the sum of all tax credit recapture amounts from

Schedule RC-R, Line 12, Form 8874(K)-B, Line 3, and/or Schedule DS, page 2, Line 10. Attach Schedule RC -R, Form 8874(K)-B and/or Schedule DS. Line 3-Enter the total of Lines 1 and 2.

# Line 4 -Enter the nonrefundable LLET credit from Kentucky

Schedule(s) K-1. Copies of Kentucky Schedule(s) K-1 must be attached to the tax return in order to claim the credit.

# Line 5 -Enter the total nonrefundable tax credits from Schedule

TCS, Part III, Column E, Line 1 (attach Schedule TCS) . Line 6 -Enter the greater of Line 3 less Lines 4 and 5, or $175 minimum. Line 7-Enter the total estimated LLET payments made for the taxable year. Do not include the amount credited from the prior year.

Liability Entity, or Nonresident Withholding Income Tax Refund, and attach it to the corporation's or pass-through entity's tax return.

# PART III - INCOME TAX COMPUTATION

For S Corporations: Complete Lines 1 through 3 Partnerships: If checking the box, the Partnership elects to pay the tax on behalf of its partners due to an IRS audit per KRS 141.211(4). Skip to Line 4

# Line 1- Enter tax from the Excess Net Passive Income Tax

Worksheet, Line 13. (See instructions and worksheet on page 19.) If the S corporation has accumulated earnings and profits at the close of its tax year, has passive investment income for the tax year that is in excess of twenty-five percent of gross receipts, and has excess passive income, the S corporation must pay a tax on the excess net passive income per KRS 141.040(4)(c). Complete Lines 1 through 3 and Line 9 of the worksheet on page 19 to make this determination. If Line 2 is greater than Line 3 and the S corporation has taxable income (see instructions for Line 9 of worksheet), it must pay the tax. Attach completed worksheet to the return.

# Line 2-Enter the built-in gains tax from the Built-In Gains Tax

Worksheet, Line 8. Attach completed worksheet to the return. (See instructions and worksheet on page 19.) If the S corporation for the taxable year has built-in gains per IRC §1374, the S corporation must pay a built-in gains tax as provided by KRS 141.040(4)(c). IRC §1374 provides that the built-in gains tax may apply to the following S corporations: (1) An S corporation that was a C corporation before it elected to be an S corporation; or (2) An S corporation that acquired an asset with a basis determined (in whole or in part) by reference to its basis (or the basis of any other property) in the hands of a C corporation per IRC §1374(d)(8). An S corporation may owe tax if it has net recognized built-in gain during the applicable recognition period. The applicable recognition period is the five (5) year period beginning: (1) For an asset held when the S corporation was a C corporation, on the first day of the first tax year for which the corporation is an S corporation; or (2) For an asset with a basis determined by reference to its basis (or the basis of any other property) in the hands of the C corporation, on the date the asset was acquired by the S corporation. A corporation must compute the built-in gains tax separately for the group of assets it held at the time its S election became effective and for each group of assets it acquired from a C corporation with the basis determined (in whole or in part) by reference to the basis of the asset (or any other property) in hands of the C corporation. For details, see §1.1374-8 of the Treasury Regulations. Line 3 -Enter the amount of Tax installment on LIFO recapture. The first installment is paid on the C corporation's final return, and the remaining three installments are paid on the S corporation's first three tax returns. Attach a schedule showing the amounts and dates of the installments paid by the S corporation.

Line 8-Enter the total refundable tax credits from Schedule TCS, Part IV, Line 4 (attach Schedule TCS) . Line 9- Reserved for future use.

Line 10 -Enter the amount of LLET paid with Form 720EXT, Extension of Time to File Kentucky Corporation/LLET Return.

# Line 11-Enter the amount credited to 2025 LLET from Form PTE,

Part II, Line 21 of the 2024 return. Line 12-Enter the income tax overpayment from Part III, Line 13 credited to the 2025 LLET. If filing an amended return, enter the amount from the original return. Line 13-Enter the LLET paid on the original return. This line is used only when filing an amended return. Line 14-Enter the LLET overpayment on the original return. This line is used only when filing an amended return. Line 15-Enter the Estimated Tax Penalty and attach Form 2220-K. Line 16-If the total of Lines 6, 14, and 15 is greater than the total of Lines 7 through 13, enter the LLET due on this line and pay the amount due by the prescribed due date. Note: For entities with tax due on project income carried from Schedules KREDA-SP, KIDA-SP, KIRA-SP, KJDA-SP, KRA-SP, KJRA_SP, IEBA-SP, KBI-SP, and FON-SP, add the tax due from specified credit schedule(s) to the tax due line.

# Line 17-If the total of Lines 6, 14, and 15 is less than the total of

Lines 7 through 13, enter the difference on this line as a positive number. Line 18-If an underpayment exists on Part III, Line 11, Income tax due, enter the portion of the overpayment on Line 17 to be credited to the 2025 corporation income tax. Enter the amount on this line and on Part III, Line 8.

Line 19-If Line 17 reflects an overpayment, enter the portion of Line 17 to be credited to 2025 LLET interest due.

Line 20 -If Line 17 reflects an overpayment, enter the portion of Line 17 to be credited to the 2025 LLET late file/pay penalty due.

Line 21-If Line 17 reflects an overpayment, enter the portion of Line 17 to be credited to 2026 LLET.

# Line 22-If Line 17 reflects an overpayment, enter the portion of

Line 17 to be refunded (Line 17 less Lines 18 through 21). Direct Deposit of Refund- If the corporation or pass-through entity wants its refund directly deposited into its checking or savings account at any U.S. bank or other financial institution instead of having a check(s) sent to the corporation or pass-through entity, complete Form 8050-K, Direct Deposit of Corporate Income, Limited

# Line 4-Total

S Corporation: Enter the total of Lines 1 through 3, but not less than zero. Partnership: Enter the tax due that the partnership elects to pay on behalf of its partners resulting from an IRS audit. Line 5-Enter the total of the estimated income tax payments made for the taxable year. Do not include the amount credited from the prior year.

Line 6-Enter the amount of income tax paid with Form 720EXT, Extension of Time to File Kentucky Corporation/LLET Return.

# Line 7-Enter the amount credited to the 2025 income tax from

Form PTE, Part III, Line 16 of the 2024 return. Line 8-Enter the LLET overpayment credited to the 2025 income tax from Part II, Line 18. If filing an amended return, enter the amount from the original return. Line 9-Enter the income tax paid on the original return. This line is used only when filing an amended return. Line 10-Enter the income tax overpayment on the original return. This line is used only when filing an amended return.

# Line 11-If the total of Lines 4 and 10 is greater than the total of

Lines 5 through 9, enter the difference on this line and pay the amount due by the prescribed due date.

Line 12-If the total of Lines 4 and 10 is less than the total of Lines 5 through 9, enter the difference on this line as a positive number.

Line 13- If an underpayment exists on Part II, Line 16, LLET due, enter the portion of the overpayment on Line 12 to be credited to the 2025 LLET. Enter the amount on this line and on Part II, Line 12.

Line 14- If Line 12 reflects an overpayment, enter the portion of Line 12 to be credited to 2025 corporation income tax interest due.

# Line 15- If Line 12 reflects an overpayment, enter the portion of

Line 12 to be credited to the 2025 corporation income tax late file/ pay penalty due.

Line 16- If Line 12 reflects an overpayment, enter the portion of Line 12 to be credited to 2026 corporation income tax.

# Line 17- If Line 12 reflects an overpayment, enter the portion of

Line 12 to be refunded (Line 12 less Lines 13 through 16). Direct Deposit of Refund- If the corporation or pass-through entity wants its refund directly deposited into its checking or savings account at any U.S. bank or other financial institution instead of having a check(s) sent to the corporation or pass-through entity, complete Form 8050-K, Direct Deposit of Corporate Income, Limited Liability Entity, or Nonresident Withholding Income Tax Refund, and attach it to the corporation's or pass-through entity's tax return. PART IV-EXPLANATION OF FINAL RETURN AND/OR SHORT-

# PERIOD RETURN

If a final return and/or short-period return is being filed, check the box next to the reason why the return was filed. If the box for Other is checked, please provide details in the space provided.

# PART V-EXPLANATION OF AMENDED RETURN CHANGES

If an amended return is being filed, please provide a detailed explanation for any return changes in the space provided. If additional space is needed, attach a supporting statement. SCHEDULE Q- Answer all applicable questions on Schedule Q. SCHEDULE K (FORM PTE) General Instructions -Complete all applicable lines by entering the total pro rata share amount for each item listed. Federal instructions for Form 1120S or 1065 and federal Schedule K provide additional information which will assist the pass-through entity in completing Schedule K, Form PTE. A pass-through entity must use Form PTE(K), Kentucky Schedule K For Pass-Through Entities With Economic Development Project(s), if the pass-through entity has one or more projects under the Kentucky Rural Economic Development Act (KREDA), Kentucky Industrial Development Act (KIDA), Kentucky Jobs Retention Agreement (KJRA), Kentucky Industrial Revitalization Act (KIRA), Kentucky Jobs Development Act (KJDA), Kentucky Business Investment Program (KBI), Kentucky Reinvestment Act (KRA), Incentives for Energy-related Business Act (IEBA), or Farming Operation Networking Project (FON). Section A-Income (Loss) and Deductions Line 1-Enter Kentucky ordinary income (loss) from Form PTE, Part I, Line 21. Line 2-Enter net income (loss) from rental real estate activities reported on federal Schedule K, Form 1120S or Form 1065, adjusted to reflect any differences in Kentucky and federal income tax laws. Attach federal Form 8825. Line 3(a) -Enter the gross income from other rental activities reported on federal Schedule K, Form 1120S or Form 1065. Line 3(b)-Enter the expenses from other rental activities reported on federal Schedule K, Form 1120S or Form 1065, adjusted to reflect any differences in Kentucky and federal income tax laws. Line 3(c)-Enter the difference of Line 3(a) and Line 3(b). Line 4(a) -Enter interest income from federal Schedule K, Form 1120S or Form 1065, adjusted to exclude tax-exempt U.S. government interest, if any, and to include interest income from obligations of states other than Kentucky and their political subdivisions.

Lines 4(b) and 4(c) -Enter the amount of dividend and royalty income reported on federal Schedule K, Form 1120S or Form 1065. Line 4(d) -See instructions on page 5 regarding differences in gain or loss from disposition of assets , and if applicable, enter the amount from Line 7 of the Kentucky Schedule D that is portfolio income. Report any gain or loss that is not portfolio income on Line 7, Schedule K, Form PTE. Kentucky Schedule D must be attached to Form PTE. Otherwise, enter the amount from Line 7 of the federal Schedule D (Form 1120S or Form 1065) that is portfolio income. Line 4(e)-See instructions on page 5 regarding differences in gain or loss from disposition of assets , and if applicable, enter the amount from Line 15 of the Kentucky Schedule D that is portfolio income. Report any gain or loss that is not portfolio income on Line 7, Schedule K, Form PTE. Kentucky Schedule D must be attached to Form PTE. Otherwise, enter the amount from Line 15 of the federal Schedule D (Form 1120S or Form 1065) that is portfolio income. Line 4(f)-Enter any other portfolio income not reported on Lines 4(a) through 4(e), Schedule K, Form PTE. Line 5 -Partnerships Only- Enter guaranteed payments to partners. Line 6-See instructions on page 5 regarding differences in gain or loss from disposition of assets. If applicable, enter the amount from Line 7 of the Kentucky Form 4797, and Kentucky Form 4797 must be attached to Form PTE . Otherwise, enter net gain (loss) under IRC §1231 from federal Form 4797. Do not include net gains (losses) from involuntary conversions due to casualties or thefts on this line. Instead, report them on Kentucky Schedule K, Line 7. Line 7-Enter all other items of income (loss) of the pass-through entity not included on Lines 1 through 6. See federal instructions for Schedule K, Form 1120S or Form 1065. Line 8-Enter total contributions paid by the pass-through entity during its taxable year and attach a schedule showing separately the contributions subject to the 50 percent, 30 percent, and 20 percent limitations. These percentage limitations must be applied to the Kentucky amounts rather than the federal amounts.

# Line 9-See instructions on page 5 regarding depreciation and

IRC §179 deduction differences , and if applicable, include the amount from Line 12 of the Kentucky Form 4562. Kentucky Form 4562 must be attached . Otherwise, enter IRC §179 deduction from federal Form 4562. Line 10-Enter the expenses related to portfolio income reported on federal Schedule K, Form 1120S or Form 1065, adjusted to exclude expenses related to tax-exempt interest income and other exempt income. Line 11-Enter any other deductions of the pass-through entity not included on Lines 6 through 9. See federal instructions for Schedule K, Form 1120S or Form 1065. Line 12(a) -Enter the pass-through entity's deductible interest expense allocable to debt on property held for investment purposes. Property held for investment purposes includes property that produces investment income (interest, dividends, annuities, royalties, etc.). The total amount entered should equal the amount of interest expense reported on federal Schedule K, Form 1120S or Form 1065, adjusted to exclude any interest expense on debts incurred to purchase or carry investment property producing, or held for the production of, U.S. government interest income. Lines 12(b)(1) and (b)(2) -Enter only the investment income included on Lines 4(a), 4(b), 4(c), and 4(f), Schedule K, Form PTE, and only the investment expenses included on Line 10, Schedule K, Form PTE. See federal instructions for Schedule K, Form 1120S or Form 1065. Line 13- Use the following codes for tax credits passed through to the owners: KSBTC-Kentucky Small Business tax credit per KRS 141.384; attach a copy of the Kentucky Economic Development Finance Authority approval. KSFTC-Kentucky Selling Farmers tax credit per KRS 141.3841; attach a copy of the Kentucky Economic Development Finance Authority approval. STICA-Skills Training Investment Credit Act tax credit per KRS 141.405; attach copy of the Bluegrass State Skills Corporation certification(s). CR-Certified Rehabilitation tax credit per KRS 171.397; attach a copy of the Kentucky Heritage Council certification(s). UTC-Kentucky Unemployment tax credit per KRS 141.065; attach Schedule UTC. RC-Recycling/Composting Equipment tax credit per KRS 141.390; attach Schedule RC. KIFA-Kentucky Investment Fund tax credit per KRS 154.20-258; attach a copy of the Kentucky Economic Development Finance Authority notification with the credit amount granted and the first year the credit may be claimed. QR-Qualified Research facility tax credit per KRS 141.395; attach Schedule QR. GED- GED incentive tax credit per KRS 151B.402; attach GED-Incentive Program Final Report (Form DAEL-31) for each employee that completed a learning contract during the year. VERB-Voluntary Environmental Remediation tax credit per KRS 141.418; attach Schedule VERB. BIO-Biodiesel tax credit per KRS 141.424; attach Schedule BIO. CCI-Clean Coal Initiative tax credit per KRS 141.428; attach Schedule CCI. ETH-Ethanol tax credit per KRS 141.4242; attach Schedule ETH. CELL-Cellulosic Ethanol tax credit per KRS 141.4244; attach Schedule CELL. RR-I-Railroad Maintenance and Improvement tax credit per KRS 141.385; attach Schedule RR-I.

ENDOW-ENDOW Kentucky tax credit per KRS 141.438; attach Schedule ENDOW. NMDP-New Markets Development Program tax credit per KRS 141.434; attach Form 8874(K)-A. DS-Distilled Spirits tax credit per KRS 141.389; attach Schedule DS. INV-Inventory tax credit per KRS 141.408; attach Schedule INV. CHEM-Renewable Chemical Production tax credit per KRS 141.422; attach Schedule CHEM. KQBI-Broadband tax credit per KRS 141.391; attach Schedule KQBI. General Partnerships Only: Applies to Refundable Tax Credits on Lines 14, 15, and 16 Line 14-Enter Certified rehabilitation tax credit (attach Kentucky Heritage Council certification(s)). Line 15- Enter the Kentucky Entertainment Incentive (attach a copy of the Kentucky Economic Development Finance Authority approval). Line 16- Enter the Decontamination tax credit (attach a copy of the Kentucky Energy and Environment Cabinet approval). Line 17(a)-Enter the information provided on federal Schedule K, Form 1120S, Line 12c or Schedule K, Form 1065, Line 13c(1). Line 17(b)-Enter the amount reported on federal Schedule K, Form 1120S, Line 12c or Schedule K, Form 1065, Line 13c(2). Line 18 -Enter the total amount of interest income of the pass-through entity from U.S. government bonds and securities and obligations of Kentucky and its political subdivisions. Line 19-Enter the total amount of any other type of income of the pass-through entity on which the owner is exempt from Kentucky income tax. Line 20-Enter the total amount of nondeductible expenses paid or incurred by the pass-through entity including, but not limited to, state taxes measured by gross/net income, expenses related to tax-exempt income, etc. Do not include a deduction reported elsewhere on Schedule K, Form PTE, capital expenditures, or items for which the deductions are deferred to a later year.

# Line 21-Enter the amount reported on federal Schedule K, Form

1120S, Line 16d or Schedule K, Form 1065, Line 19a and 19b, adjusted to reflect any differences in Kentucky and federal income tax laws, such as depreciation. Line 22 -Attach schedules to report the pass-through entity's total income, expenses, and other information applicable to items not included on Lines 1 through 11 and Lines 13 through 19 including, but not limited to, any recapture of IRC §179 deduction, gross income, and other information relating to oil and gas well properties enabling the owners to figure the allowable depletion deduction, and any other information the owners need to prepare their Kentucky income tax returns. See federal instructions for Schedule K, Form 1120S, Line 12d or Schedule K, Form 1065, Line 13d. S Corporations Only:

# Line 23-Enter the amount reported on federal Schedule K, Form

1120S, Line 17c adjusted to reflect any differences in Kentucky and federal income tax laws, such as depreciation. SECTION B-LLET Pass-through Items (Required) Line 1- Enter the pass-through entity's Kentucky gross receipts from Schedule L, Section A, Line 2. Line 2- Enter the pass-through entity's total gross receipts from Schedule L, Section B, Line 1. Line 3-Enter the pass-through entity's Kentucky gross profits from Schedule L, Section A, Line 5. Line 4- Enter the pass-through entity's total gross profits from Schedule L, Section B, Line 3. Line 5 -Enter the limited liability entity tax (LLET) nonrefundable credit from page 3, Part II, the total of Lines 4 and 6, less $175. SECTION C - Apportionment Pass-through Items (if applicable) Line 1- Enter the pass-through entity's Kentucky receipts from Schedule A, Part I, Line 1. Line 2-Enter the pass-through entity's total receipts from Schedule A, Part I, Line 2. SECTION D-3-Factor Apportionment (KRS 141.121) Line 1- Enter the pass-through entity's Kentucky property from Schedule A, Part I, Line 5. Line 2- Enter the pass-through entity's total property from Schedule A, Part I, Line 6. Line 3- Enter the pass-through entity's Kentucky payroll from Schedule A, Part I, Line 8. Line 4-Enter the pass-through entity's total payroll from Schedule A, Part I, Line 9.

# SCHEDULE L-LIMITED LIABILITY ENTITY TAX COMPUTATION

General Partnerships Only-Schedule L, Sections A and B must be completed, but Schedule L, Sections C, D, and E are not required. Except for Part II- LLET COMPUTATION, the rest of the return and schedules must be completed. Purpose of Schedule -Schedule L, Limited Liability Entity Tax Computation, is used to compute the limited liability entity tax (LLET) per KRS 141.0401(2). Kentucky gross receipts, Kentucky gross profits, total gross receipts from all sources, and total gross profits from all sources must be completed per KRS 141.0401(1). See the line-by-line instructions below.

NOTE: Pass-through entities with one or more economic development projects listed in the instructions for Schedule PTE(K) on page 14 will report the project's LLET, Kentucky gross receipts, Kentucky gross profits, total gross receipts from all sources, and total gross profits from all sources using the Form L-ECON. For these entities, the amounts reported on Schedule L of the Form PTE will include only those amounts unrelated to the economic development project. Short-Period Computation of LLET -For short-period returns, annualizing gross receipts or gross profits is not permitted. A minimum of $175 is due per taxable year. Taxable year is defined as the period for which the return is made. KRS 141.010(36)

# SPECIFIC LINE INSTRUCTIONS

Check Box-If the entity is required to attach Schedule L-C, check the box. Section A-Computation of Kentucky Gross Receipts and Gross Profits If the pass-through entity filing the tax return is a partner or member of a pass-through entity (including a general partnership) doing business in Kentucky, complete Schedule L-C and enter the total amounts from Schedule L-C, Section A, Lines 2 and 5 on Schedule L, Section A, Lines 2 and 5; and the total amounts from Schedule L-C, Section B, Lines 1 and 3 on Schedule L, Section B, Lines 1 and 3, and continue to Schedule L, Sections C, D, and E. If the amount in Section B, Line 1 or 3 is $3,000,000 or less, STOP, and enter $175 in Section E, Line 1. Line 1(a)-Enter Kentucky gross receipts less returns and allowances. Gross receipts includes, but is not limited to, sales, rent, proceeds from the sale of real and tangible personal property, interest, and dividends. Line 1(b)-Enter Kentucky gross receipts allocable to a "qualified exempt organization" defined in KRS 141.0401(7). Line 2-Enter adjusted gross receipts, Line 1(a) less Line 1(b). Line 3(a)-Enter the Kentucky cost of goods sold from Schedule COGS, Column A , Line 8. For any activity other than manufacturing, producing, reselling, retailing, or wholesaling, no costs can be claimed. KRS 141.0401(1)(d) If a value is entered on this line, a completed Schedule COGS must be attached or the claimed cost of goods sold will be disallowed. Line 3(b)-Enter the Kentucky cost of goods sold associated with the gross receipts allocable to a "qualified exempt organization" defined in KRS 141.0401(7). Line 4-Enter adjusted cost of goods sold, Line 3(a) less Line 3(b). Line 5-Enter gross profits, Line 2 less Line 4. Section B-Computation of TOTAL Gross Receipts and Gross Profits Line 1-Enter adjusted gross receipts. Gross receipts includes, but is not limited to, sales, rent, proceeds from the sale of real and tangible personal property, interest, and dividends.

# Line 2-Enter the total cost of goods sold from Schedule COGS,

Column B, Line 8. Line 3-Enter gross profits, Line 1 less Line 2. Section C-Computation of Gross Receipts LLET Line 1-If gross receipts from all sources (Section B, Line 1) are greater than $3,000,000, but less than $6,000,000, enter the following: (Section A, Line 2 x 0.00095) - ($2,850 x (($6,000,000 - Section A, Line 2) / $3,000,000)), but in no case shall the result be less than zero. Line 2-If gross receipts from all sources (Section B, Line 1) are $6,000,000 or greater, enter the following: Section A, Line 2 x 0.00095. If a value is entered on this line, a completed Schedule COGS must be attached or the claimed cost of goods sold will be disallowed. Line 3-Enter the amount from Line 1 or Line 2. Section D-Computation of Gross Profits LLET Line 1-If gross profits from all sources (Section B, Line 3) are greater than $3,000,000, but less than $6,000,000, enter the following: (Section A, Line 5 x 0.0075) - ($22,500 x (($6,000,000 - Section A, Line 5) / $3,000,000)), but in no case shall the result be less than zero. Line 2-If gross profits from all sources (Section B, Line 3) are $6,000,000 or greater, enter the following: Section A, Line 5 x 0.0075. Line 3-Enter the amount from Line 1 or Line 2. Section E-Computation of LLET

# Line 1-Enter the lesser of Section C, Line 3 or Section D, Line

3 here and on page 3, Part II, line 1. If less than $175, enter the minimum of $175 here and on page 3, Part II, Line 1. Signature -Form PTE must be signed by an authorized owner (member) or corporate officer. Failure by owner (member) or corporate officers to sign the return, to complete all applicable lines on any required Kentucky form, to attach all applicable schedules, including copies of federal forms, or to complete all information on the questionnaire will delay the processing of tax returns. -

SCHEDULE K-1 (FORM PTE)-KENTUCKY OWNER'S SHARE OF INCOME, CREDITS, DEDUCTIONS, ETC.

# General Instructions

Kentucky Schedule K-1 (Form PTE) shows each owner's pro rata share of the pass-through entity's income, deductions, credits, etc. On each Schedule K-1 (Form PTE), enter the names, addresses, and identifying numbers of the owner and pass-through entity, and complete items A, B, C, D, and E. All owner's names, Social Security or identifying numbers, and other owner information must be complete and legible. Schedule K-1 (Form PTE) must be completed and given to each owner with instructions on or before the day on which Form PTE is filed with the Department of Revenue. Item C- Please check only one box for ownership type. Item D- Only check the box if nonresident owner's income is reported on FORM 740NP-WH and FORM PTE-WH. A copy of each owner's K-1 (Form PTE) must be attached to Form PTE filed with the Department of Revenue and a copy kept as part of the entity's records.

# Specific Instructions

Federal instructions for Schedule K-1 explain the rules for allocating items of income (loss), deductions, credits, etc., to each partner, member, or shareholder. The total share items reported on all Kentucky Schedules K-1, Lines 1 through 22 must equal the amounts reported on Kentucky Schedule K, Lines 1 through 22. The total share items reported on all Schedules K-1, Sections B, C, and D must equal the amounts reported on the comparable lines of Schedule K, Sections B, C, and D. Schedule K-1, Section E does not correspond with Schedule K. Multiple Activities -If items of income, loss, or deduction from more than one activity are reported on Lines 1, 2, or 3 of Schedule K-1 (Form PTE), the entity must provide information for each activity to its partners, members, or shareholders. See Passive Activity Reporting Requirements in the instructions for Schedule K-1 (Form 1120S or Form 1065) for details on the information to be provided on an attachment to Schedule K-1 (Form PTE) for each activity. At-Risk Activities -If the entity is involved in one or more at-risk activities for which a loss is reported on Schedule K-1 (Form PTE), the entity must report information separately for each at-risk activity. See Special Reporting Requirements for At-Risk Activities in the federal instructions for Schedule K-1 (Form 1120S or Form 1065) for details on the information to be provided on an attachment to Schedule K-1 (Form PTE) for each at-risk activity. Sections A, B, C, and D -Enter the partner, member, or shareholder's total pro rata share of each item listed on Schedule K, Form PTE. Do not multiply these amounts by the percentage entered on Item B(2) . Attach schedules showing separately the required information for each IRC §469 passive activity and each IRC §465 at-risk activity. Other schedules are to be attached for line items where requested on Schedule K-1 (Form PTE). Enter on attached schedules the supplemental information required to be reported separately to each partner, member, or shareholder for Lines 1 through 22 and any other information or items and amounts not included on Schedule K-1 (Form PTE) for which the partner, member, or shareholder needs to prepare a Kentucky income tax return including, but not limited to, any recapture of IRC §179 deduction, gross income, and other information relating to oil and gas well properties enabling the partner, member, or shareholder to figure the allowable depletion deduction, etc.

Built-in Gains Tax Worksheet (Attach this Worksheet to Form PTE) 1. Excess of recognized built-in gains over recognized built-in losses (see instructions)........................................... ___________________ 2. Taxable income (see instructions) ................ ___________________ 3. Net recognized built-in gains. Enter the lesser of line 1 or line 2 ................. ___________________ 4. IRC §1374(b)(2) deduction ........................... ___________________ 5. Enter line 3 less line 4. If zero or less, enter zero here and on line 8 ........................................................ ___________________ 6. Enter 100% or the apportionment factor from the last C corporation return, Schedule A (see Schedule A instructions) ................................................... ___________________ 7. Multiply the amount on line 5 by the percentage on line 6 ............................... ___________________ 8. Enter 5% of line 7 on this line and on Form PTE, Part III, line 2 ............................................................. ___________________ Instructions for Built-in Gains Tax Worksheet: 1. Enter the amount that would be the taxable income of the corporation for the tax year if only recognized built-in gains (including any carryover of gain under §1374(d)(2)(B) of the IRC) and recognized built-in losses were taken into account. 2. Figure taxable income by completing Form 720, Part I, Lines 1 through 39. Follow the instructions for Form 720. Enter the amount from Form 720, Part I, Line 40 on Line 2 of the Built-in Gains Tax Worksheet. 3. Enter the lesser of the amount from Line 1 or Line 2. If for any year the amount on Line 1 exceeds the taxable amount on Line 2, the excess is treated as a recognized built-in gain in the succeeding tax year. 4. Enter the IRC § 1374(b)(2) deduction. Generally, this is any net operating loss carryforward (to the extent of net capital gain included in recognized built-in-gain for the tax year) arising in tax years for which the corporation was a C corporation. See §1374(b)(2) of the IRC and §1.1374-5 of the Treasury Regulations. 5. Enter the amount of Line 3 less Line 4. If zero or less, enter zero here and on Line 8. 6. Enter 100% or the apportionment factor from the last C corporation return, Schedule A (see Schedule A instructions). 7. Enter the amount on Line 5 multiplied by the percentage on Line 6. 8. Multiply the amount on Line 7 by 5% and enter the amount on this line and on Form PTE, Part III, Line 2, and attach computation to Form PTE. Instructions for Excess Net Passive Income Tax Worksheet: 1. Enter the gross receipts for the tax year. Also see §1362(d)(3)(B) of the IRC. Income on Line 1 is from total operations for the year and includes income from Form PTE, Part III as well as income reported separately on Schedule K. 2. Enter the passive investment income as defined in §1362(d)(3)(C) of the IRC. Deductions on Line 2 are from total operations for the year and include deductions from Form PTE, Part III as well as those reported separately on Schedule K. See §1375(b)(4) of the IRC for an exception regarding this line. 3. Enter 25% of the amount on Line 1 (If Line 2 is less than Line 3, stop here. You are not liable for this tax.) 4. Enter the amount of Line 2 less Line 3. 5. Enter deductions directly connected with the production of income on Line 2 (See §1375(b)(2) of the IRC). Deductions on Line 5 are from total operations for the year and include deductions from Form PTE, Part III as well as those reported separately on Schedule K. See §1375(b)(4) of the IRC for an exception regarding this line. 6. Enter the amount of Line 2 less Line 5. This is your Net Passive Income. 7. Enter the amount of Line 4 divided by the amount on Line 2. 8. Enter the amount of Line 6 multiplied by Line 7. This is your Excess Net Passive Income. 9. Enter taxable income as defined in §1.1374-1A(d) of the Treasury Regulations. Figure this income by completing Form 720, Part I, Lines 1 through 40. Include the Form 720 computation with the worksheet computation you attach to Form PTE. You do not have to attach the schedules, etc., called for on Form 720. However, you may want to complete certain Form 720 schedules, such as Kentucky converted Schedule D, if you have capital gains or losses. 10. Enter the lesser of the amount from Line 8 or Line 9. 11. Enter 100%, or if taxable in Kentucky and taxable in another state, the apportionment factor from Schedule A (see Schedule A instructions). 12. Enter the amount on Line 10 multiplied by the percentage on Line 11. 13. Excess net passive income tax-enter 5% of Line 12. Enter here and on Form PTE, Part II, Line 1. Excess Net Passive Income Tax Worksheet (Attach this Worksheet to Form PTE) 1. Enter gross income receipts for the tax year as defined in IRC §1362(d)(3)(B) .............................................. ___________________ 2. Enter passive investment income as defined in IRC §1362(d)(3)(C) .............................................. ___________________ 3. Enter 25% of line 1 (If line 2 is less than line 3, stop here. You are not liable for the tax.) ....................... ___________________ 4. Enter line 2 less line 3 (This is your excess passive investment income.) ...................................... ___________________ 5. Enter deduction directly connected with the production of income on line 2 (see instructions) ................................. ___________________ 6. Enter line 2 less line 5 (This is your net passive income.) ........................................................ ___________________ 7. Enter line 4 divided by the amount on line 2 ........................................................ ___________________ 8. Multiply line 6 by line 7 (This is your excess net passive income.) ........................................... ___________________ 9. Enter taxable income (see instructions)........................................... ___________________ 10. Enter the lesser of the amount on line 8 or line 9 .......................................... ___________________ 11. Enter 100% or the apportion- ment factor from Schedule A (see Schedule A instructions) ....................... ___________________ 12. Multiply the amount on line 10 by the percentage on line 11 ......................... ___________________ 13. Enter 5% of line 12 on this line and on Form PTE, Part II, line 1 ............................................................. ___________________

PTE (2025) Tax Credit Summary Schedule Schedule TCS is used by pass-through entities to apply tax credits for entities subject to the corporation income tax imposed by KRS 141.040 and/or the limited liability entity tax (LLET) imposed by KRS 141.0401. The amount of tax credit against each tax can be different. Taxpayer as used in this section refers to the S corporation, partnership, or general partnership. Economic Development Tax Credits - This section is completed only if a limited liability pass-through entity has been approved for one or more of the credits authorized by the: (1) Metropolitan College Consortium (MCC - KRS 141.381); (2) Kentucky Small Business Tax Credit Program (KSBTC - KRS 141.384); (3) Kentucky Selling Farmers Tax Credit (KSFTC - KRS 141.3841)or (4) Skills Training Investment Credit Act (STICA - KRS 154.12). A limited liability pass-through entity must not enter income or LLET tax credits on Schedule TCS from: • Kentucky Rural Economic Development Act (KREDA - KRS 154.22); • Kentucky Industrial Development Act (KIDA - KRS 154.28); • Kentucky Jobs Retention Agreement (KJRA - KRS 154.25); • Kentucky Industrial Revitalization Act (KIRA - KRS 154.26); • Kentucky Jobs Development Act (KJDA - KRS 154.24); • Kentucky Business Investment Program (KBI - KRS 154.32); • Kentucky Reinvestment Act (KRA - KRS 154.34); • Incentives for Energy-related Business Act (IEBA - KRS 154.27); • Farming Operation Networking Project (FON - KRS 141.412). A limited liability pass-through entity must file Schedules KREDA-

# SP, KIDA-SP, KJRA-SP, KIRA-SP, KJDA-SP, KBI-SP, KRA-SP,

IEBA-SP or FON-SP to compute the tax credits for these programs.

To claim the STICA or MCC credit, a copy of the tax credit certification(s) received from Bluegrass State Skills Corporation reflecting the amount of credit awarded must be attached to the tax return. The credit for either the STICA or MCC must be claimed on the tax return filed for the taxable year during which the final authorizing resolution is adopted by Bluegrass State Skills Corporation. The STICA credit not used during the year in which the final authorizing resolution is adopted by Bluegrass State Skills Corporation may be carried forward three successive years; the MCC credit not used during the year in which the final authorizing resolution is adopted by Bluegrass State Skills Corporation may be carried forward to tax years ending before April 15, 2027. If a STICA or MCC credit is being carried forward from a prior year, attach a schedule reflecting the original credit available, the amount of the credit used each year, and the balance of the credit. To claim the KSBTC and KSFTC credit, a copy of the tax credit notification received from Kentucky Economic Development Finance Authority (KEDFA) reflecting the amount of credit awarded must be attached to the tax return. The credit for the KSBTC and KSFTC must be claimed on the tax return for the taxable year during which the credit was approved by KEDFA. The tax credit not used during the year of approval by KEDFA may be carried forward up to five years. If a KSBTC and KSFTC credit is being carried forward from a prior year, attach a schedule reflecting the original credit available, the amount of the credit used each year, and the balance of the credit. Economic development tax credits are allowed against the taxes imposed by KRS 141.020 or KRS 141.040 and KRS 141.0401. Information regarding the approval process for these credits may be obtained from the Cabinet for Economic Development, Department for Financial Incentives (telephone: 502-564-4554) or Bluegrass State Skills Corporation (telephone: 502-564-2021). Nonrefundable Tax Credits Farming Operation Networking Tax Credit- A qualified farming operation which has a farm operation networking project approved by the Cabinet for Economic Development per KRS 141.410 to KRS 141.414 is allowed a credit against the taxes imposed by KRS 141.040 or KRS 141.020 and KRS 141.0401 attributable to the project per KRS 141.412. The annual tax credit is available for the first five (5) years that the farming operation is involved in the networking project. The annual tax credit is equal to the approved costs incurred by the qualified farming operation during the tax year and must not exceed the income, Kentucky gross profits, or Kentucky gross receipts of the qualified farming operation generated by or arising out of the qualified farming operation's participation in a networking project. Schedule FON must be attached to the tax return claiming the credit. KRS 141.412 Unemployment Tax Credit-If a taxpayer hired a Kentucky resident classified as unemployed for at least 60 days and the resident remains in the employ of the taxpayer for 180 consecutive days during the tax year (a qualified person), the taxpayer may be entitled to the unemployment tax credit against the taxes imposed by KRS 141.020 or KRS 141.040 and KRS 141.0401. For each qualified person, a one-time nonrefundable credit of $100 may be claimed. The period of unemployment must be certified by the Education and Workforce Development Cabinet, Department of Workforce Investment, Office of Employment and Training, Frankfort, KY, and a copy of the certification must be maintained by the taxpayer. For certification questions, call 502-564-7456. Schedule UTC must be attached to the return claiming this credit. KRS 141.065 Recycling/Composting Tax Credit- A taxpayer that purchases recycling and/or composting equipment to be used exclusively in Kentucky for recycling or composting post-consumer waste materials may be entitled to a nonrefundable credit against the taxes imposed by KRS 141.020 or KRS 141.040 and KRS 141.0401 in an amount equal to 50 percent of the installed cost of the equipment. Application for this credit must be made on Schedule RC and a copy of the schedule reflecting the amount of credit approved by the Department of Revenue must be attached to the tax return on which the credit is claimed. The amount of this credit claimed for the tax year may not exceed 25 percent of the total tax liability and cannot exceed 10 percent of the credit approved in the first year of eligibility. For taxable years beginning after December 31, 2019, a taxpayer that purchases recycling and/or composting equipment to be used exclusively in Kentucky for recycling or composting post -consumer waste material that qualifies as a Major Recycling Project is entitled to a nonrefundable credit against the taxes imposed by KRS 141.020 or KRS 141.040 and KRS 141.0401. The credit is an amount equal to 25 percent of the installed cost of the recycling or composting equipment. The amount of credit claimed in a taxable year subsequent to the taxable year during which the recycling equipment is purchased shall not exceed seventy-five percent (75%) of the total of each tax liability, which would be otherwise due for that taxable year. To qualify, the taxpayer must: (1) invest more than $10,000,000; (2) have at least 400 full-time employees with an average hourly wage of more than 300% of the federal minimum wage; and (3) have plant and equipment costing at least $500,000,000. A taxpayer is entitled to claim the recycling credits in KRS 141.390(2) (a) and (b), but cannot claim both for the same recycling and/or composting equipment. KRS 141.390

PTE (2025) Tax Credit Summary Schedule Kentucky Investment Fund Tax Credit-A taxpayer which makes a cash contribution to an investment fund approved by KEDFA per KRS 154.20-250 to KRS 154.20-284 is entitled to a nonrefundable credit equal to 40 percent of the investor's proportional ownership share of all qualified investments made by the investment fund and verified by the authority. The credit may be applied against the taxes imposed by KRS 141.020 or 141.040, 141.0401, 136.320, 136.300, 136.310, 136.330, 136.505, and 304.3-270. A copy of the notification from KEDFA reflecting the amount of credit granted and the year in which the credit may first be claimed must be attached to the tax return claiming this credit. The tax credit amount that may be claimed by an investor in any tax year must not exceed 50 percent of the initial aggregate credit amount approved by the authority for the investment fund which is proportionally available to the investor. Example: An investor with a 10 percent investment in a fund which has been approved for a total credit to all investors of $400,000 is limited to $20,000 maximum credit in any given year ($400,000 x 10% x 50%). If the amount of credit that may be claimed in any tax year exceeds the tax liabilities, the excess credit may be carried forward, but the carryforward of any excess tax credit will not increase the limitation that may be claimed in any tax year. Any credit not used in 15 years, including the year in which the credit may first be claimed, will be lost. Information regarding the approval process for these credits may be obtained from the Cabinet for Economic Development, Department of Financial Incentives at 502-564-4554. KRS 141.068 Qualified Research Facility Tax Credit -A taxpayer is entitled to a credit against the taxes imposed by KRS 141.020 or KRS 141.040 and KRS 141.0401 of 5 percent of the qualified costs of constructing, remodeling, expanding, and equipping facilities in Kentucky for "qualified research." Any unused credit may be carried forward 10 years. Schedule QR, Qualified Research Facility Tax Credit, must be attached to the tax return on which this credit is claimed. Federal Form 6765, Credit for Increasing Research Activities, must also be attached if applicable. See instructions for Schedule QR for more information regarding this credit. KRS 141.395 GED Incentive Tax Credit-A taxpayer is entitled to a credit against the taxes imposed by KRS 141.020 or KRS 141.040 and KRS 141.0401. The credit reflected on this line must equal the sum of the credits reflected on the attached GED-Incentive Program Final Reports. This credit may be claimed only in the year during which the learning contract was completed and unused portions of the credit may not be carried forward or back. For information regarding the program, contact the Education and Workforce Development Cabinet,

# Kentucky Adult Education, Council on Postsecondary Education at

502-573-5114. The GED-Incentive Program Final Report (DAEL-31) for each employee that completed a learning contract during the tax year must be attached to the tax return claiming the credit. KRS 151B.402 Voluntary Environmental Remediation Tax Credit -The taxpayer must have an agreed order and be approved by the Energy and Environment Cabinet per KRS 224.1-514. Maximum tax credit allowed to be claimed per taxable year is 25 percent of the approved credit. This credit may be claimed against the taxes imposed by KRS 141.020 or KRS 141.040 and KRS 141.0401. For more information regarding credit for voluntary environmental remediation property, contact the Energy and Environment Cabinet at 502-564-6716. Schedule VERB must be attached to the tax return claiming this credit. KRS 141.418 Biodiesel Tax Credit -Producers and blenders of biodiesel and producers of renewable diesel are entitled to a tax credit against the taxes imposed by KRS 141.020 or KRS 141.040 and KRS 141.0401. The taxpayer must file a claim for biodiesel credit with the Department of Revenue by January 15 each year for biodiesel produced or blended and the renewable diesel produced in the previous calendar year. The department will issue a credit certification (Schedule BIO) to the taxpayer by April 15. The credit certification must be attached to the tax return claiming this credit. KRS 141.423 and 103 KAR 15:140 Clean Coal Incentive Tax Credit -Effective for tax years ending on or after December 31, 2006, a nonrefundable, nontransferable credit against taxes imposed by KRS 136.120 or KRS 141.020 or KRS 141.040 and KRS 141.0401 will be allowed for a clean coal facility. Per KRS 141.428, a clean coal facility means an electric generation facility beginning commercial operation on or after January 1, 2005, at a cost greater than $150 million that is located in the Commonwealth of Kentucky and is certified by the Energy and Environment Cabinet as reducing emissions of pollutants released during generation of electricity through the use of clean coal equipment and technologies. The amount of the credit is $2 per ton of eligible coal purchased that is used to generate electric power at a certified clean coal facility, except that no credit will be allowed if the eligible coal has been used to generate a credit under KRS 141.0405 for the taxpayer, parent, or subsidiary. KRS 141.428 Ethanol Tax Credit-Producers of ethanol are entitled to a tax credit against the taxes imposed by KRS 141.020 or KRS 141.040 and KRS 141.0401. The taxpayer must file a claim for cellulosic ethanol credit with the Department of Revenue by January 15 each year for ethanol produced in the previous calendar year. The department will issue a credit certification (Schedule ETH) to the taxpayer by April 15. The credit certification must be attached to the tax return claiming this credit. KRS 141.4242 and 103 KAR 15:110 Cellulosic Ethanol Tax Credit-Producers of cellulosic ethanol are entitled to a tax credit against the taxes imposed by KRS 141.020 or KRS 141.040 and KRS 141.0401. The taxpayer must file a claim for cellulosic ethanol credit with the Department of Revenue by January 15 each year for cellulosic ethanol produced in the previous calendar year. The department will issue a credit certification (Schedule CELL) to the taxpayer by April 15. The credit certification must be attached to the tax return claiming this credit. KRS 141.4244 and 103 KAR 15:120 Railroad Maintenance and Improvement Tax Credit- For tax years beginning on or after January 1, 2010, an owner of any Class II railroad or Class III railroad located in Kentucky or any person who transports property using the rail facilities of a Class II railroad or Class III railroad located in Kentucky or furnishes railroad-related property or services to a Class II railroad or Class III railroad located in Kentucky, but only with respect to miles of railroad track assigned to the person by a Class II railroad or Class III railroad, is entitled to a nonrefundable credit against taxes imposed by KRS 141.020 or KRS 141.040 and KRS 141.0401 in an amount equal to fifty percent of the qualified expenditures paid or incurred to maintain or improve railroads located in Kentucky, including roadbeds, bridges, and related structures, that are owned or leased as of January 1, 2008, by a Class II or Class III railroad. The credit allowed must not exceed the product of $3,500 multiplied by the sum of: (1) The number of miles of railroad track in Kentucky owned or leased by the eligible taxpayer as of the close of the taxable year; and (2) The number of miles of railroad track in Kentucky assigned to the eligible taxpayer by a Class II railroad or Class III railroad which owns or leases the railroad track as of the close of the taxable year. Attach Schedule RR-I to the return when claiming this credit. KRS 141.385

PTE (2025) Tax Credit Summary Schedule Railroad Expansion Tax Credit- For tax years beginning on or after January 1, 2010: (a) a corporation that owns fossil energy resources subject to tax under KRS 143.020 or KRS 143A.020 or biomass resources and transports these resources using rail facilities; or (b) a railway company subject to tax under KRS 136.120 that serves a corporation that owns fossil energy resources subject to tax under KRS 143.020 or KRS 143A.020 or biomass resources is entitled to a nonrefundable tax credit against taxes imposed under KRS 141.040 and KRS 141.0401 equal to twenty-five percent of the expenditures paid or incurred by the corporation or railway company to expand or upgrade railroad track, including roadbeds, bridges, and related track structures, to accommodate the transport of fossil energy resources or biomass resources. The credit amount approved for a calendar year for all taxpayers under KRS 141.386 is limited to $1 million. If the total amount of approved credit exceeds $1 million, the department will determine the amount of credit each corporation and railroad company receives by multiplying $1 million by a fraction, the numerator of which is the amount of approved credit for a corporation or railway company and the denominator of which is the total approved credit for all corporations and railway companies. Each corporation or railway company eligible for the credit must file Schedule RR-E by the fifteenth day of the first month following the close of the preceding calendar year. The department will determine the amount of the approved credit and issue a credit certificate to the corporation or railway company by the fifteenth day of the third month following the close of the calendar year. KRS 141.386 ENDOW Kentucky Tax Credit - A taxpayer making an endowment gift to a permanent endowment fund of a qualified community foundation, county-specific component fund, or affiliate community foundation, which has been certified under KRS 147A.325, is entitled to a tax credit equal to twenty percent (20%) of the endowment gift, not to exceed $10,000. The nonrefundable tax credit is allowed against the taxes imposed by KRS 141.020 or KRS 141.040 and KRS 141.0401 and if not used in the year the tax credit is awarded, may be carried forward for a period not to exceed five years. The department will issue a credit certification (Schedule ENDOW) to a taxpayer upon receiving proof that the endowment gift was made to the approved community foundation per KRS 141.438(7). Schedule ENDOW must be attached to the taxpayer's tax return each year to claim the credit. A partner, member, or shareholder of a passthrough entity must attach a copy of Schedule K-1, Form PTE to the partner's, member's, or shareholder's tax return each year to claim the tax credit. NOTE: This credit may limit charitable contribution deductions allowed under Section 170 of the IRC. See the IRC and federal regulations for additional information on any limitations. KRS 141.438 and 103 KAR 15:195 New Markets Development Program Tax Credit-A taxpayer that makes a qualified equity investment per KRS 141.432(7) in a qualified community development entity defined by KRS 141.432(6) is entitled to a nonrefundable tax credit against the taxes imposed by KRS 141.020, 141.040, 141.0401, 136.320, 136.330, 136.340, 136.350, 137.370, 136.390, or 304.3-270. The total amount of tax credits that may be awarded by the department is limited to $10 million. "Qualified low-income community investment" means any capital or equity investment in, or loan to, any qualified active low-income community business made after June 4, 2010. With respect to any one qualified active low-income community business, the maximum amount of qualified active low-income community investments that may be made in the business, on a collective basis with all of its affiliates, with the proceeds of qualified equity investments that have been certified under KRS 141.433 is $10 million, whether made by one or several qualified community development entities. The amount of the credit will be equal to 39% of the purchase price of the qualified equity investment made by the taxpayer. A taxpayer is allowed to claim zero percent (0%) for each of the first two credit allowance dates, seven percent (7%) for the third allowance date, and eight percent (8%) for the next four allowance dates. "Credit allowance date" means with respect to any qualified equity investment: (a) the date on which the investment is initially made; and (b) each of the six anniversary dates of that date thereafter. KRS 141.432 to KRS 141.434 Distilled Spirits Tax Credit- For taxable years beginning on or after January 1, 2015, a nonrefundable and nontransferable credit against the tax imposed by KRS 141.020 or KRS 141.040 and KRS 141.0401 is available to taxpayers who pay Kentucky property tax on distilled spirits. The distilled spirits credit is equal to: 100 percent of the property tax assessed and timely paid for taxable years beginning on or after January 1, 2019. The amount of the credit is contingent on the costs associated with the following capital improvements at the premises of the distiller: construction, replacement, or remodeling of warehouses or facilities; purchases of barrels and pallets used for the storage and aging of distilled spirits in maturing warehouses; acquisition, construction, or installation of equipment for the use in the manufacture, bottling, or shipment of distilled spirits; addition or replacement of access roads or parking facilities; and construction, replacement, or remodeling of facilities to market or promote tourism, including but not limited to a visitor's center. Attach Schedule DS to the return claiming the credit. For taxable years beginning on or after January 1, 2024, but prior to January 1, 2040, a taxpayer may make an election regarding the distilled spirits tax credit. The election shall be to waive any accumulated amount of tax credits and be allowed a nonrefundable and nontransferable tax credit up to twenty-five thousand (25,000) barrels of distilled spirits in a bonded warehouse or premises for each taxable year. The tax credit shall be equal to one hundred percent (100%) of the tax assessed under KRS 132.160 and paid by the taxpayer under KRS 132.180 on a timely basis on those barrels. Or, the taxpayer may elect to waive all future tax credits allowed and be allowed a refundable tax credit on multiple taxes. File form 720-DS-ELECT to make an election. KRS 141.389 Kentucky Entertainment Incentive Tax Credit- For applications approved on or after April 27, 2018, but before January 1, 2022, a nonrefundable and nontransferable credit against the taxes imposed by KRS 141.020 or KRS 141.040 and KRS 141.0401 is available for taxpayers who have received notification from the film office that the approved company has satisfied all requirements of KRS 148.542 to KRS 148.546. Attach film office certification to the return claiming the credit. KRS 141.383 Inventory Tax Credit- For taxable years beginning on or after January 1, 2018, a nonrefundable and nontransferable tax credit is allowed against the taxes imposed by KRS 141.020 or KRS 141.040 and KRS 141.0401 for ad valorem (property) taxes timely paid on inventory. This credit is phased in as follows: 25% in 2018; 50% in 2019; 75% in 2020; 100% in 2021 and thereafter. Attach Schedule INV to the return claiming the credit. KRS 141.408 Renewable Chemical Production Tax Credit- For taxable years beginning on or after January 1, 2021, and ending on or before December 31, 2024, a nonrefundable and nontransferable credit allowed against the taxes imposed by KRS 141.020 or KRS 141.040 and KRS 141.0401 is available for taxpayers that produce renewable chemicals. Preliminary approval is obtained through the Department of Agriculture. Schedule CHEM is due to the Department of Revenue

PTE (2025) Tax Credit Summary Schedule by March 1 each year. The Department of Revenue will issue the credit certificate (Schedule CHEM) by April 15 each year. The annual biodiesel, renewable diesel, and renewable chemical production tax credit cap is $10,000,000 annually. There is a carryforward of three (3) years for any unused credit. The credit certificate must be attached to the tax return claiming the credit. KRS 141.4231,KRS 246.700(8), and 103 KAR 15:140 Broadband Tax Credit- For applications approved for taxable years beginning on or after January 1, 2025, but before January 1, 2029, a nonrefundable and nontransferable credit is allowed against the taxes imposed under KRS 141.020 or KRS 141.040 and KRS 141.0401 for the sales tax paid on eligible equipment or services used in the expansion of broadband services in Kentucky. The credit is limited to 50% of the amount of sales tax paid, after reduction for seller reimbursements. The total amount of the credit is capped at $5 million for each taxable year. Companies must complete and file an application with the department by December 31 of the calendar year in which the investment was made. The department will review and approve the allowable credit amount by February 1. Attach Schedule KQBI and verification of the sales and use tax remitted to the return claiming the credit. KRS 141.391 Refundable Tax Credits Certified Rehabilitation Tax Credit -This credit is allowed only if the taxpayer has been approved for the credit by the Kentucky Heritage Council. Credit is allowed against the taxes imposed by KRS 141.020 or KRS 141.040 and KRS 141.0401 or KRS 136.505 for qualified rehabilitation expenses on certified historic structures. Certification copies must be attached to the return claiming the credit. KRS 171.3961 and KRS 171.397 Major Certified Rehabilitation Tax Credit-Prior to December 31, 2021, the Kentucky Heritage Council may award one application for preliminary approval of a major certified rehabilitation for a certified historic structure. Credit is allowed against the taxes imposed by KRS 141.020 or KRS 141.040 and KRS 141.0401 for qualified rehabilitation expenses on certified historic structures. The total approved credit shall be available over a four (4) year period and the maximum credit which may be claimed in a taxable year shall not exceed twenty-five percent (25%) of the total approved credit. Certification copies must be attached to the return claiming the credit. KRS 171.3963 Kentucky Entertainment Incentive Tax Credit- For applications approved on or after January 1, 2022, a refundable credit against the taxes imposed by KRS 141.020 or KRS 141.040 and KRS 141.0401 is available for taxpayers who have received notification from the Kentucky Cabinet for Economic Development that the approved company has satisfied all requirements of KRS 154.61-020 and KRS 154.61-030. Attach certification to the return claiming the credit. KRS 141.383 Decontamination Tax Credit-The taxpayer must be approved by the Energy and Environment Cabinet per KRS 224.1-420. Maximum tax credit allowed to be claimed per taxable year is 25 percent of the approved credit. This is a refundable credit and may be claimed against the taxes imposed by KRS 141.020 or KRS 141.040 and KRS 141.0401 for making a qualifying expenditure at a qualifying decontamination property. For more information regarding credit for decontamination, contact the Energy and Environment Cabinet at 502 -564 -6716. A copy of the approved application must be attached to the tax return claiming this credit. KRS 141.419

# GENERAL INFORMATIONPTE TAXPAYER ASSISTANCE

Forms: Office

of

Registration

and

Operations 501 High Street, Station 23B Frankfort, KY 40601 502-564-3658 Website: revenue.ky.gov Email: Financerevenueformsandenvelopes@ky.gov Information: Pass-Through Entity Branch Department of Revenue 501 High Street, Station 52 Frankfort, KY 40601-2103 502-564-8139 Mailing/Payment: Mail the return with payment to:

# Kentucky Department of Revenue, Frankfort, Kentucky 40620-

0021. Make the check(s) payable to the Kentucky State Treasurer. Mail returns with no tax due or refund requests to:

Kentucky Department of Revenue, Frankfort, Kentucky 40618-

# KENTUCKY TAXPAYER SERVICE CENTERS

Information and forms are available from Kentucky Taxpayer Service Centers in the following cities. Ashland, 1212 Bath Avenue, Suite 201, 41101 606-920-2037 Bowling Green, 201 West Professional Park Court, 42104-3278 270-746-7470 Corbin, 15100 North US 25E, Suite 2, 40701-6188 606-528-3322 Frankfort, 501 High Street, Station 38, 40601-2103 502-564-5930 Hopkinsville, 181 Hammond Drive, 42240-7926 270-889-6521 Louisville, 600 West Cedar Street

2nd Floor West, 40202-2310

502-595-4512 Northern Kentucky, T urfway

Ridge

Office

Park

Turfway Road, Suite 190 Florence, 41042-4871

859-371-9049 Owensboro, Corporate Center 401 Frederica Street, Building C, Suite 201, 42301-6295

270-687-7301 Paducah, Clark Business Complex, Suite G 2928 Park Avenue, 42001-4024

270-575-7148 Pikeville, Uniplex Center, Suite 203 Trivette Drive, 41501-1275

606-433-7675 TANGIBLE PERSONAL PROPERTY TAXES-The listing period for tangible personal property is January 1 through May 15 of each year. Each taxpayer is responsible for reporting their tangible personal property subject to ad valorem taxation. The Tangible Personal Property Tax Return, Revenue Form 62A500, and instructions can be obtained from your local county property valuation adminis trator's office or the Office

of Property V aluation. You may also go to revenue.ky.gov to download these forms. A separate form must be filed for

each location in Kentucky where you have tangible personal property. Do not attach a copy of Form 62A500 to Form PTE. Mission Statement As part of the Finance and Administration Cabinet, the mission of the Kentucky Department of Revenue is to administer tax laws, collect revenue, and provide services in a fair, courteous, and efficient manner for the benefit of the Commonwealth and its citizens. * * * * * * * * * The Kentucky Department of Revenue does not discriminate on the basis of race, color, national origin, sex, age, religion, disability, sexual orientation, gender identity, veteran status, genetic information, or ancestry in employment or the provision of services.

# Kentucky State Treasury-Unclaimed Property

Individuals The Kentucky State Treasury may be holding unclaimed property for you or your family. The Treasury holds hundreds of millions of dollars from bank accounts, payroll checks, life insurance, utility deposits, and other types of property that have been unclaimed by the owners. Please visit https://home.treasury.gov/ or www.missingmoney.com for more information on how to locate and claim any funds that may belong to you. Businesses Kentucky businesses are required to comply with the Kentucky Revised U niform U nclaimed Pr operty A ct, c odified a s K RS

C hapter 393A. If you have uncashed vendor checks, payroll checks, unclaimed customer deposits or refunds, or other types of property belonging to third-parties, you may be required to turn the property over to the Kentucky State Treasury. Please review KRS Chapter 393A, or visit https://home.treasury.gov for more information.

# YOUR RIGHTS AS A KENTUCKY TAXPAYER

As part of the Finance and Administration Cabinet, the mission of the Kentucky Department of Revenue (DOR) is to administer tax laws, collect revenue, and provide services in a fair, courteous, DQGHႈFLHQWPDQQHUIRUWKHEHQH¿WRIWKH&RPPRQZHDOWKDQG its citizens. As a Kentucky taxpayer, you have the right to expect the DOR to honor its mission and uphold your rights every time you contact or are contacted by the DOR. 6RPH.HQWXFN\WD[SD\HUULJKWVDUHYHU\VSHFL¿FVXFKDVZKHQ and how to protest a Notice of Tax Due or the denial of a refund. Others are more general. The following is a summary of your rights and the DOR's responsibilities to you as a Kentucky taxpayer.

# RIGHTS OF TAXPAYER

Privacy You have the right to privacy with regard to information you provide SHUWDLQLQJWRUHWXUQVUHSRUWVRUWKHDႇDLUVRI\RXUEXVLQHVV Assistance You have the right to advice and assistance from the DOR in complying with state tax laws. Explanation You have the right to a clear and concise explanation of: 9 basis of assessment of additional taxes, interest and penalties, or the denial or reduction of any refund or credit claim; 9 procedure for protest and appeal of a Notice of Tax Due, a reduction or denial of a refund, or a denial of a request IRU DGGLWLRQDO WLPH WR ¿OH D VXSSRUWLQJ VWDWHPHQW  DQG 9 tax laws and changes in tax laws so that you can comply with the law. Protest and Appeal <RXKDYHWKHULJKWWR¿OHDSURWHVWZLWKWKH'25LI\RXGLVDJUHHZLWK a Notice of Tax Due, a reduction or denial of a refund, or a denial RIDUHTXHVWIRUDGGLWLRQDOWLPHWR¿OHDVXSSRUWLQJVWDWHPHQW,I\RX ¿OHDWLPHO\SURWHVW\RXKDYHDULJKWWRDFRQIHUHQFHWRGLVFX VV WKHPDWWHU,I\RXDUHQRWVDWLV¿HGZLWKWKH'HSDUWPHQW¶V¿QDO UXOLQJIROORZLQJ\RXUSURWHVW\RXPD\DSSHDOWKH¿QDOUXOLQJWRWKH Kentucky Board of Tax Appeals, pursuant to KRS 131.110(4) and .56 HWVHT 6HHUHYHUVHIRUSURFHGXUHWR¿OHDSURWHVW

Representation You have the right to representation by your authorized agent (attorney, accountant, or other person) in any hearing or conference with the DOR. You have the right to be informed of this right prior WRWKHFRQIHUHQFHRUKHDULQJ,I\RXLQWHQGIRU\RXUUHSUHVHQWDWLYH to attend the conference or hearing in your place, you will be required to give your representative a power of attorney before the DOR can discuss tax matters with your authorized agent. See Form 20A100. Recordings You have the right to make an audio recording of any meeting, conference, or hearing with the DOR. The DOR has the right to PDNHDQDXGLRUHFRUGLQJLI\RXDUHQRWL¿HGLQZULWLQJLQDGYDQFH or if you make a recording. You have the right to receive a copy of the recording. Consideration You have the right to consideration of: 9 waiver of penalties or collection fees if "reasonable cause" for UHGXFWLRQRUZDLYHULVJLYHQ ³UHDVRQDEOHFDXVH´LVGH¿QHGLQ KRS 131.010(9) as: "an event, happening, or circumstance entirely beyond the knowledge or control of a taxpayer who KDVH[HUFLVHGGXHFDUHDQGSUXGHQFHLQWKH¿OLQJRIDUHWXUQRU report or the payment of monies due the department pursuant to law or administrative regulation"). Note that interest is not waivable for "reasonable cause" as described in this paragraph; 9 installment payments of delinquent taxes, interest, and penalties; 9 waiver of interest and penalties, but not taxes, resulting from incorrect written advice from the DOR if all facts were given and the law did not change or the courts did not issue a ruling to the contrary; 9 H[WHQVLRQRIWLPHIRU¿OLQJUHSRUWVRUUHWXUQV DQG 9 SD\PHQWRIFKDUJHVLQFXUUHGUHVXOWLQJIURPDQHUURQHRXV¿OLQJ of a lien or levy by the DOR. Guarantee You have the right to a guarantee that DOR employees are not paid, evaluated, or promoted based on taxes assessed or collected, or a tax assessment or collection quota or goal imposed or suggested. Damages <RXKDYHWKHULJKWWR¿OHDFODLPIRUDFWXDODQGGLUHFWPRQHWDU \ damages with the Kentucky Board of Tax Appeals if a DOR employee willfully, recklessly, an d intentionally disregards your rights as a Kentucky taxpayer. Interest You may have the right to receive interest on an overpayment of tax.

# DEPARTMENT OF REVENUE RESPONSIBILITIES

The DOR has the responsibility to: 9 perform audits and conduct conferences and hearings with you at reasonable times and places; 9 authorize, require, or conduct an investigation or surveillance of you only if it relates to a tax matter; 9 make a written request for payment of delinquent taxes which are due and payable at least 30 days prior to seizure and sale of your assets; 9 conduct educational and informational programs to help you understand and comply with the laws; 9 publish clear and simple statements to explain tax procedures, remedies, your rights and obligations, and the rights and obligations of the DOR; 9 notify you in writing when an erroneous lien or levy is released and, if requested, notify major credit reporting companies in FRXQWLHVZKHUHOLHQZDV¿OHG

9 advise you of procedures, remedies, and your rights and obligations with an original notice of audit or when an original Notice of Tax Due is issued, a refund or credit is denied or reduced, or whenever a license or permit is denied, revoked, or canceled; 9 QRWLI\\RXLQZULWLQJSULRUWRWHUPLQDWLRQRUPRGL¿FDWLRQRID payment agreement; 9 furnish copies of the agent's audit workpapers and a written narrative explaining the reason(s) for the assessment; 9 resolve tax controversies on a fair and equitable basis at the administrative level whenever possible; 9 notify you in writing at your last known address at least 60 days prior to publishing your name on a list of delinquent taxpayers IRUZKLFKDWD[RUMXGJPHQWOLHQKDVEHHQ¿OHG DQG 9 QRWLI\\RXE\FHUWL¿HGPDLOGD\VSULRUWRVXEPLWWLQJ\RXU name to the relevant agency for the revocation or denial of professional license, driver's license, or motor vehicle registration.

# PROTEST AND APPEAL PROCEDURE

Protest ,I\RXUHFHLYHD1RWLFHRI7D['XHRULIWKH'25QRWL¿HV\RXWKDW a tax refund has been reduced or denied, or the DOR denies your UHTXHVWIRUDGGLWLRQDOWLPHWR¿OHDVXSSRUWLQJVWDWHPHQW\RXKDYH the right to protest. To do so: 9 submit a written protest within 60 days from the original notice date (or 45 days if the original notice date is prior to 07/01/2018); notice of refund reduction or denial, or denial of DUHTXHVWIRUDGGLWLRQDOWLPHWR¿OHDVXSSRUWLQJVWDWHPHQW  9 identify the type of tax involved and give the account number, 6RFLDO6HFXULW\QXPEHURURWKHULGHQWL¿FDWLRQQXPEHUDQG attach a copy of the DOR Notice of Tax Due or refund denial to support that your protest is timely; 9 explain why you disagree; 9 attach any proof or documentation available to support your protest or request additional time to support your protest; 9 sign your statement, include your daytime telephone number and mailing address; and 9 mail to the Kentucky Department of Revenue, Frankfort, Kentucky 40620. Conference You have the right to request a conference to discuss the issue. Final Ruling ,I\RXGRQRWZDQWWRKDYHDFRQIHUHQFHRULIWKHFRQIHUHQFHGLG QRWUHVROYH\RXUSURWHVW\RXKDYHWKHULJKWWRUHTXHVWD¿QDOUXOLQJ of the DOR so that you can appeal your case further. Appeal ,I\RXGRQRWDJUHHZLWKWKH'25¶V¿QDOUXOLQJ\RXFDQ¿OHD ZULWWHQDSSHDOZLWKWKH.HQWXFN\%RDUGRI7D[$SSHDOV,I\RXGR not agree with the decision of the Kentucky Board of Tax Appeals, you have the right to appeal their ruling to the Kentucky courts

¿UVWWRWKHFLUFXLWFRXUWLQ\RXUKRPHFRXQW\RULQ)UDQNOLQ&RXQW\ WKHQWRWKH.HQWXFN\&RXUWRI$SSHDOVDQG¿QDOO\WRWKH.HQWXFN\ Supreme Court). NOTE: The above protest and appeal procedures do not apply for real property which is valued by the local property valuation administrator (PVA). Contact the local PVA for information about how to appeal the valuation of real property.

# TAXPAYER OMBUDSMAN

The DOR has a Taxpayer Ombudsman whose job is to serve as an advocate for taxpayers' rights. One of the main functions of the Ombudsman is to ensure that your rights as a Kentucky taxpayer are protected. Also, an important function of the Taxpayer Ombudsman is to FRQIHUZLWK'25HPSOR\HHVZKHQ\RXKDYHDSUREOHPRUFRQÀLFW that you have been unable to resolve. However, it is not the role of the Ombudsman to intercede in an audit, handle a protest, waive taxes, penalty or interest, or answer technical tax questions. To ¿OHDSURWHVWVHH3527(67$1'$33($/352&('85(3OHDVH do not mail your protest to the Ombudsman. The Taxpayer Ombudsman is your advocate and is there to make VXUH\RXUULJKWVDUHSURWHFWHG,I\RXWKLQN\RXDUHQRWEHLQJWUHDWHG fairly or if you have a problem or complaint, please contact the Ombudsman for assistance. The Taxpayer Ombudsman may be contacted by telephone at 502-564-7822 (between 8:00 a.m. and 5:00 p.m. weekdays). The mailing address is: Department of Revenue, Taxpayer Ombudsman, 501 High Street, Station 1, Frankfort, Kentucky 40601.

# WHERE TO GET ASSISTANCE

7KH'25KDVRႈFHVLQ)UDQNIRUWDQGWD[SD\HUVHUYLFHFHQWHUV in nine cities and towns throughout Kentucky. DOR employees in the service centers answer tax questions and provide assistance. You may obtain assistance by contacting any of the following: Ashland T axpayer S ervice C enter 1212 Bath Avenue, Suite 201, 41 101 606-920-2037 Bowling G reen Taxpayer Service C enter 201 West Professional Park Court, 42104-3278 27 0 -74 6 -7470 Corbin Taxpayer Service Center 1RUWK86(6XLWH± 606-528-3322 Frankfort Taxpayer S ervice Cent er 501 High Street, 40601-2103 502-564-5930 Hopkinsville Taxpayer Service Cent er 181 Hammond D rive, 4 2240-7926 27 0 -88 9 - 6521 Louisville Taxpayer Ser vice Center 600 West Cedar Street, 2nd Floor West, 40202-2310 502-595-4512 Northern K entucky Taxpayer Ser vice Cent er 7XUIZD\5LGJH2ႈFH3DUN 7310 T urfway R oad, S uite 1 90 Florence 41042-4871 85 9 -371 - 9049 Owensboro Taxpayer S ervice Center 401 Frederica Street, Building C, Suite 201, 42301-6295 270-687-7301 Paducah Taxpayer S ervice Center Clark Busines s C omplex, Suit e G 2928 Park A venue, 42001-4024 270-575-7148 Pikeville Taxpayer S ervice Cent er 8QLSOH[&HQWHU7ULYHWWH'ULYH6XLWH± 606 - 433-7675 * * * * * * * * * * The DOR has an online taxpayer service center where you can download forms, publications, and obtain general information about the department. The address is revenue.ky.gov . The information in this brochure merely summarizes your rights as a Kentucky taxpayer and the responsibilities of the Department of Revenue. The Kentucky Taxpayers' Bill of Rights may be found in the Kentucky Revised Statutes (KRS) at Chapter 131.041-131.083. Additional rights and responsibilities are provided for in KRS 131.020, 131.110, 131.170, 131.1817, 131.183, 131.190, 131.500, 131.654, 133.120, 133.130, 134.580, and 134.590. Printing costs paid from state funds.

# DEPARTMENT OF REVENUE

10F100 (2025) The Kentucky Department of Revenue does not discriminate on the basis of race, color, national origin, sex, age, religion, disability, sexual orientation, gender identity, veteran status, genetic information or ancestry in employment or the provision of services.