Form K-RCC "Recipient's Share of Capital Credit" - Alabama

What Is Form K-RCC?

This is a legal form that was released by the Alabama Department of Revenue - a government authority operating within Alabama. As of today, no separate filing guidelines for the form are provided by the issuing department.

Form Details:

  • Released on August 1, 2017;
  • The latest edition provided by the Alabama Department of Revenue;
  • Easy to use and ready to print;
  • Quick to customize;
  • Compatible with most PDF-viewing applications;
  • Fill out the form in our online filing application.

Download a printable version of Form K-RCC by clicking the link below or browse more documents and templates provided by the Alabama Department of Revenue.

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Download Form K-RCC "Recipient's Share of Capital Credit" - Alabama

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ecipient’s Share of Capital Credit
K-RCC
8/17
A
D
R
LABAMA
EPARTMENT OF
EVENUE
FORM
R
For the tax year beginning ____________________, 20_____ and ending ____________________, 20_____.
THIS FORM MUST BE ATTACHED TO RECIPIENT’S INCOME TAX RETURN TO RECEIVE THE CAPITAL CREDIT AVAILABLE.
THE CAPITAL CREDIT AVAILABLE TO RECIPIENT WILL BE DISALLOWED IF FORM K-RCC IS NOT ATTACHED.
NOTE: If the project is a joint venture, lines 4 and 7 will be completed by the recipient and lines 1-3, 5 and 6 will be completed by the
project entity or distributing entity. If the project is not a joint venture, the project entity must complete lines 1-7 and the recipient’s per-
centage of allocation will be 100%.
Project No.:
Recipient’s Name:
FEIN or Soc. Sec. No.:
Address:
City:
State:
ZIP:
Project Entity:
Telephone No.: (
)
Address:
City:
State:
ZIP:
1. Total project income allocated to Alabama . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
%
2. Recipient’s percentage (%) of allocation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
3. Recipient’s Share of Project income in Alabama (multiply line 1 by line 2) . . . . . . . . . . . . . . . . .
3
4. Recipient’s Alabama Tax Liability generated by Project income:
With/without method     
Allocation method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
5. Capital Credit Available for this Tax Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
6. Recipient’s Share of Capital Credit Available for this Tax Year (multiply line 5 by line 2) . . . . . .
6
7. Capital Credit Eligible to be applied to recipient’s tax liability
(enter the lesser of line 4 and line 6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
Under penalties of perjury, I declare that I am duly authorized to complete this form and to the best of my knowledge and belief, the pro-
ject was throughout the period for which the capital credit is claimed in compliance with the conditions required to be met in order to
qualify the project for the capital credit and the sum of all capital credits utilized to date when added to the capital credit claimed in the
current return, do not exceed the capital costs of the qualifying project. I understand that if this affidavit is not fully executed, completed,
and notarized this credit will be disallowed by the Alabama Department of Revenue.
Signature of Recipient:
SWORN TO AND SUBSCRIBED before me
Signature:
this
day of
, 20
.
Notary Public (seal also required)
ecipient’s Share of Capital Credit
K-RCC
8/17
A
D
R
LABAMA
EPARTMENT OF
EVENUE
FORM
R
For the tax year beginning ____________________, 20_____ and ending ____________________, 20_____.
THIS FORM MUST BE ATTACHED TO RECIPIENT’S INCOME TAX RETURN TO RECEIVE THE CAPITAL CREDIT AVAILABLE.
THE CAPITAL CREDIT AVAILABLE TO RECIPIENT WILL BE DISALLOWED IF FORM K-RCC IS NOT ATTACHED.
NOTE: If the project is a joint venture, lines 4 and 7 will be completed by the recipient and lines 1-3, 5 and 6 will be completed by the
project entity or distributing entity. If the project is not a joint venture, the project entity must complete lines 1-7 and the recipient’s per-
centage of allocation will be 100%.
Project No.:
Recipient’s Name:
FEIN or Soc. Sec. No.:
Address:
City:
State:
ZIP:
Project Entity:
Telephone No.: (
)
Address:
City:
State:
ZIP:
1. Total project income allocated to Alabama . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
%
2. Recipient’s percentage (%) of allocation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
3. Recipient’s Share of Project income in Alabama (multiply line 1 by line 2) . . . . . . . . . . . . . . . . .
3
4. Recipient’s Alabama Tax Liability generated by Project income:
With/without method     
Allocation method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
5. Capital Credit Available for this Tax Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
6. Recipient’s Share of Capital Credit Available for this Tax Year (multiply line 5 by line 2) . . . . . .
6
7. Capital Credit Eligible to be applied to recipient’s tax liability
(enter the lesser of line 4 and line 6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
Under penalties of perjury, I declare that I am duly authorized to complete this form and to the best of my knowledge and belief, the pro-
ject was throughout the period for which the capital credit is claimed in compliance with the conditions required to be met in order to
qualify the project for the capital credit and the sum of all capital credits utilized to date when added to the capital credit claimed in the
current return, do not exceed the capital costs of the qualifying project. I understand that if this affidavit is not fully executed, completed,
and notarized this credit will be disallowed by the Alabama Department of Revenue.
Signature of Recipient:
SWORN TO AND SUBSCRIBED before me
Signature:
this
day of
, 20
.
Notary Public (seal also required)
Instructions For Preparing
Recipient’s Share of Capital Credit
(Form K-RCC)
If the recipient is a distributing entity (e.g. S corporation, partnership, LLC, etc.) which receives a share of the cap-
ital credit from the project and will allocate the portion it has received to its shareholders, beneficiaries, partners,
etc.), please follow the instructions for a distributing entity. All recipients applying the credit to their Alabama
income tax liability should follow the recipient’s instructions.
Recipient’s instructions for Form K-RCC
second returns should be maintained for audit purposes and
Lines 1-3 – To be completed by the project entity or distrib-
are not to be filed with the first returns.
uting entity.
Allocation Method
If the allocation method is chosen, the recipient should com-
Line 4 – Compute the recipient’s Alabama tax liability gener-
plete the allocation schedule at the bottom of this page and mul-
ated by project income. This may be computed using either a)
tiply the Alabama income tax liability on their Alabama income
with/without method or b) allocation method.
tax return by percentage of allocation on line 3.
Lines 5-6 – To be completed by the project entity or distrib-
Please check the box indicating which method the
uting entity.
recipient has chosen to compute their Alabama tax
Line 7 – Enter the lesser of line 4 and line 6. This is the
liability generated by project income.
amount of capital credit eligible to be applied to the recipient’s
With/Without Method
Step 1 – If the with/without method is chosen, you must
Alabama income tax liability.
complete two federal income tax returns through the tax liability
line. The return to be filed with the Internal Revenue Service
Distributing Entity Instructions for Form K-RCC
should include the income from the project operations. A second
A distributing entity is an entity (e.g. S corporation, partner-
return must be completed through the tax liability line but should
ship, LLC, etc.) which receives a share of the capital credit from
not include the project income in Alabama. Any deductions limit-
the project and will allocate the portion it has received to its
ed by the amount of adjusted gross income such as the standard
shareholders, beneficiaries, partners, etc. To allocate the income
deduction, medical expenses, and contributions must also be
and capital credit to its recipients the distributing entity shall com-
adjusted in the second return before computing the tax liability.
plete a Form K-RCC for all recipient’s and follow the instructions
The federal income tax deduction related to the project income in
listed below. NOTE: If the distributing entity is an S corporation
Alabama is the difference in the amount shown on the return to
be filed and the second return. If this taxpayer is a member of a
or an estate/trust, the entity may apply part or all of the credit to
group which files a consolidated federal income tax return, the
its income tax return liability and distribute only the remaining
federal income tax attributable to the project is the increase in the
credit. If only part of the capital credit has been applied, attach a
federal income tax apportionable to Alabama based on Alabama
computational schedule showing the amount of capital credit and
taxable income with and without project income.
related income utilized and how the remaining distributive share
was computed. The amount applied to the tax liability of an S
Step 2 – Once you have completed the federal returns, you
corporation or an estate/trust shall not be distributed to the share-
must complete two Alabama income tax returns through the tax
holders or beneficiaries.
Line 1 – Enter the income apportioned to the Project in
liability line. The return to be filed with the Alabama Department
Alabama from Form K-RCC (issued to distributing entity), line 3.
of Revenue should include the income from the project opera-
This is the distributing entity’s share of income from the project in
tions. A second return must be completed through the tax liability
Alabama to be distributed to its recipients.
line but should not include the project income in Alabama. Any
deductions limited by the amount of adjusted gross income such
Line 2 – Enter the recipient’s percentage of allocation.
as the standard deduction, medical expenses, and contributions
Line 3 – Multiply line 1 by line 2. This is the amount of pro-
must also be adjusted in the second return before computing the
ject income that is distributed to the recipient.
tax liability. The applicable federal income tax deduction should
Lines 4 – To be completed by the recipient.
be indicated from the federal returns completed in Step 1. The
Alabama tax liability generated by the project income in Alabama
Line 5 – Enter the amount of capital credit available to the
is the difference in the amount shown on the return to be filed and
project for this tax year from Form K-RCC (issued to distributing
the second return. If this taxpayer is a member of a group which
entity), line 6.
files a consolidated Alabama income tax return, the Alabama
Line 6 – Multiply line 5 by line 2. This is the recipient’s share
income tax attributable to the project is the increase in the
of the capital credit available for this tax year.
Alabama income tax apportionable to Alabama based on
Alabama taxable income with and without project income. The
Line 7 – To be completed by the recipient.
1. Recipient’s Share of Project Income in Alabama From Form K-RCC, line 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $________________
Allocation Schedule
2. Recipient’s Total Income (from recipient’s Alabama income tax return: C corporation – Form 20C, line 11;
Sole proprietorship – Form 40, line 10 or Form 40NR, line 12; S corporation/Partnership – For forms 20S and 65 enter
the total of the apportioned income amounts from Schedule K; Trust/Estate – Form 41, line 5. . . . . . . . . . . . . $________________
3. ALLOCATION PERCENTAGE Divide line 1 by line 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _______________%
NOTE: If line 1 is greater than line 2 or line 2 is a loss, then the allocation percentage in line 3 is 100%.
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