Incentives for Energy Independence Act Program

Kentucky's tax incentive for large-scale renewable energy projects provides incentives to companies that build or renovate facilities that utilize renewable energy. Companies may receive a sales tax incentive of up to 100 percent of the Kentucky sales and use tax paid (on or after the activation date) on materials, machinery, and equipment used to construct, retrofit, or upgrade an eligible project.

A renewable energy facility is defined as one that generates at least 1 megawatt from biomass, wind, landfill gas, 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.