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Funding Resources
Funding Resources
| KY Tax Credit for Renewable Facilities | |
|---|---|
| Type of Incentive | Tax |
| Eligible States | KY |
| Eligible Technology | Backpressure Turbine, Boiler, Combustion Turbine, Condensing Turbine, Extracting Turbine, Fuel Cell, Microturbine, Other, Reciprocating Engine, Heat Recovery Generator, Stirling Engine |
| Eligible Fuel | Biogas, Biomass, Other |
| Eligible Project Size | greater than 1 |
| Number of Awards |
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| Size of Award | In August 2007 Kentucky established the Incentives for Energy Independence Act to promote the development of renewable energy and alternative fuel* facilities, energy efficient buildings, alternative fuel vehicles, research & development activities and other energy initiatives. For renewable energy facilities, the bill provides incentives to companies that build or renovate facilities that utilize renewable energy, which may include: (1) up to 100 percent of the Kentucky income tax or the limited liability entity tax; (2) sales and use tax incentives of up to 100 percent; and (3) a wage assessment of up to 4 percent for associated employees. The maximum recovery for a single project from all incentives, including the income and liability entity tax credit, sales tax refund and the wage assessment, may not exceed 50 percent of the capital investment. |
| Start Date | 9/1/2007 |
| End Date |
|
| Minimum Efficiency(%) |
|
| Additional Information | A renewable energy facility is defined as one that generates at least 50 kW of electricity from solar power or at least 1 MW from wind power, biomass resources, landfill gas, hydropower or similar renewable resources. The electricity must be sold to an unrelated party. The minimum investment in any renewable energy facility must be $1 million in capital expenditure which is defined to include various non-capital costs such as labor. Prior to making any capital investments in a project, each eligible company must submit an application for incentives to the Kentucky Economic Development Finance Authority. Each incentive contract is negotiated on a case-by-case basis to determine the conditions and termination date of the project, not to exceed 25 years from the project's activation date. |
| Web Site | http://www.lrc.ky.gov/record/07S2/HB1/bill.doc  |
| Additional Web Site | http://www.dsireusa.org/library/includes/ incentive2.cfm?Incentive_Code=KY25F&state=KY&CurrentPageID=1&RE=1&EE=1 |
| Primary Contact | James Bush 500 Mero Street 12th Floor, Capital Plaza Tower Frankfort, KY 40601 U.S.A. James Bush (james.bush@ky.gov) (502) 564-7192 |