The Kentucky Inventory Credit is a nonrefundable credit that may be available to taxpayers who paid Kentucky ad valorem (property) tax on qualifying inventory.
Returns claiming the Inventory Credit must be printed and mailed to the Kentucky Department of Revenue. Include Schedule INV and any required supporting documentation with the return.
Program Entry
State Section → Kentucky Return → Credits → Business Incentive and Other Tax Credits → Inventory Credit Schedule INV
Information
Inventory Located in Kentucky
Indicates whether all inventory is located in Kentucky.
Inventory Held for Sale by a Leasing Merchant
Applies to inventory held for sale by a leasing merchant as defined under Kentucky law.
Merchandise Inventory
Inventory held for sale to customers in the ordinary course of business.
Manufactured Finished Goods
Completed products that are ready for sale.
Raw Materials/Work in Process
Raw materials and partially completed goods used in the manufacturing process.
Other Inventory
Inventory that does not fit into one of the specifically listed inventory categories.
Goods Stored in Warehouse Distribution Center
Qualifying inventory stored in a warehouse distribution center.
Inventory in Transit
Inventory being transported between locations.
Notes
- Returns claiming the Inventory Credit must be printed and mailed to the Kentucky Department of Revenue.
- Include Schedule INV and all required supporting documentation with the return.
- The Inventory Credit is a nonrefundable credit and generally cannot exceed Kentucky tax liability.
- Taxpayers should retain records supporting inventory valuations and property taxes paid.