Endow Kentucky Tax Credit and Certification

This article explains how to complete and file the Endow Kentucky Tax Credit and Certification form.

The Endow Kentucky Tax Credit and Certification is a tax incentive program designed to encourage charitable contributions to permanent endowment funds in Kentucky. This program allows taxpayers who donate to qualified community foundations to receive a tax credit, which helps reduce their Kentucky tax liability. The tax credit is available to a range of taxpayers, including individuals, estates, trusts, corporations, and pass-through entities such as limited liability companies and general partnerships. To claim the credit, taxpayers must complete a form called the “Notice of Endow Kentucky Tax Credit and Certification,” which verifies their donation to a qualified foundation and provides them with the necessary certification for tax credit purposes.

How to File the Endow Kentucky Tax Credit and Certification

To file the Endow Kentucky Tax Credit and Certification, follow these steps:

  1. Gather Your Information: Collect all necessary details about the endowment gift, the taxpayer, and the community foundation involved.
  2. Complete the Form: Fill out the form with the required information, ensuring all fields are completed correctly. The form requires information such as:
    • A: Name of the taxpayer.
    • B: Federal Identification Number or Social Security Number.
    • C: Kentucky Corporation/LLET Account Number (if applicable).
    • D: Type of Entity (individual, estate, trust, corporation, LLC, partnership, etc.).
    • E: Date of the endowment gift.
    • F: Amount of the endowment gift.
    • G: Date of preliminary authorization from the Department of Revenue.
    • H: Name of the qualified community foundation.
    • I: Federal Identification Number and contact details of the foundation.
    • J: If applicable, name of the permanent endowment fund or county-specific component fund receiving the gift.
  3. Sign and Date: The form requires the signature of a foundation officer (or designee), who must also print their name and title.
  4. Submit the Form: Once completed, submit the form along with any required attachments, such as the Schedule K-1 form or other supporting documents, to the Department of Revenue. You can submit the form through:
    • Email: [email protected]
    • Fax: 502-564-0058
    • Hand-delivery: Department of Revenue, 1st-floor security desk at 501 High Street, Frankfort, Kentucky (contact 502-564-8139).
    Note: It’s advised to submit the application electronically or by fax, as mailing may delay processing.
How to Complete the Endow Kentucky Tax Credit and Certification

How to Complete the Endow Kentucky Tax Credit and Certification

Here are the detailed, line-by-line instructions for completing the “Notice of Endow Kentucky Tax Credit and Certification” form:

  1. A. Name of Taxpayer: Enter the full legal name of the taxpayer claiming the credit.
  2. B. Federal Identification Number or Social Security Number: Provide the taxpayer’s Federal Identification Number (for corporations or other entities) or Social Security Number (for individuals).
  3. C. Kentucky Corporation/LLET Account Number (if applicable): If the taxpayer is a corporation or other entity subject to the Kentucky Corporation/LLET tax, include the account number here.
  4. D. Type of Entity: Check the appropriate box to indicate the type of entity claiming the credit (e.g., Individual, Estate, Trust, Corporation, LLC, etc.).
  5. E. Date the Endowment Gift Was Made: Enter the date the endowment gift was made to the approved foundation (mm/dd/yyyy format).
  6. F. Amount of Endowment Gift: Enter the total monetary value of the endowment gift made to the qualified community foundation.
  7. G. Date of Preliminary Authorization of Credit: Provide the date when the Department of Revenue granted preliminary authorization for the credit.
  8. H. Name of Qualified Community Foundation: Enter the full legal name of the qualified community foundation receiving the endowment gift.
  9. I. Federal Identification Number, Telephone, Fax, Address: Provide the federal identification number, phone number, fax number, and address of the qualified community foundation listed in section H.
  10. J. Name of Permanent Endowment Fund or County-Specific Component Fund: If the gift was directed to a specific fund within the foundation, enter the name of that fund here.
  11. Signature: The form must be signed by an authorized officer of the foundation or their designee. Include the officer’s printed name and title.
  12. Department of Revenue Use Only: Leave this section blank; it is for the Department of Revenue to complete after processing your form.

Submitting the Form

Once the form is completed, attach it to the appropriate tax return (e.g., Form 720, 725, 740, etc.) for the year in which you are claiming the tax credit. It is critical to ensure that the form is attached to the correct tax return to avoid delays or rejection of the credit. Submit the completed form to the Department of Revenue via email, fax, or hand delivery.

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