Stay up to date with sales tax: Join our mailing list!

Kentucky Expands Energy Independence Act Credit Program


Credits and Incentives

Kentucky enacted legislation expanding the Incentives for Energy Independence Act credit program to include the in-state portion of a carbon dioxide transmission pipeline used exclusively for the purpose of transporting carbon dioxide to a point of sale, storage, or other carbon management applications. Eligible taxpayers can claim the credit against the Kentucky corporation income tax, limited liability entity tax, personal income tax, sales and use tax, and severance tax. To qualify to claim the credit, a maximum capital investment of $50 million must be made for a carbon dioxide transmission pipeline. A maximum of 50% of the capital investment may be claimed as a credit against 100% of the state income tax and limited liability entity tax attributable to the project; 100% of the sales and use tax paid to purchase tangible personal property for the project; 80% of the severance tax paid for coal or natural gas used in the project; and 4% of the gross wages of each employee whose job is created as a result of the project. An approved company is eligible to receive an advance disbursement of the credits based on the estimated labor component of the total capital investment and the use of Kentucky residents in the construction project. (S.B. 50, Laws 2011, effective June 8, 2011)

(05/21/2012)
(New)
Scroll to Top