Energy Efficiency Tax Credits (Corporate) (Kentucky)

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Summary

Last modified on February 12, 2015.

Financial Incentive Program

Place Kentucky

Name Energy Efficiency Tax Credits (Corporate)
Incentive Type Corporate Tax Credit
Applicable Sector Agricultural, Commercial, Construction, Industrial, Installer/Contractor
Eligible Technologies Boilers, Central Air conditioners, Comprehensive Measures/Whole Building, Furnaces, Heat pumps, Lighting, Lighting Controls/Sensors, Water Heaters, Energy Star Homes, Energy Star Manufactured Homes
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Energy Efficiency Incentive Programs
Amount 30% of installed cost

Carryover Provisions For all measures excluding the Energy Star homes tax credits, the tax credit may be carried forward for one year.





Start Date 2009-01-01
Expiration Date 2015-12-31






Maximum Incentive Energy Efficient Lighting System: $500

Energy Efficient HVAC System: $500
Energy Star Manufactured Home sold by the taxpayer: $400
Energy Star Home: $800











Program Administrator Kentucky Department of Revenue

Date added to DSIRE 2008-05-12
Last DSIRE Review 2012-12-12



References DSIRE[1]


Summary

In April 2008, Kentucky enacted legislation establishing a 30% state income tax credit for taxpayers that install certain energy efficiency measures on commercial property. The 30% credit (up to $500) is allowable against individual, corporate income or limited liability income taxes for any of the following equipment:

  • Energy-Efficient Heating Ventilating and Air Conditioning (HVAC) or Hot Water System
  • Interior Lighting Systems

The total tax credit may not exceed $1,000 for any combination of HVAC, hot water, and lighting systems. It should be noted that there is a separate tax credit (up to $400) available for taxpayers who sell an Energy Star manufactured home, and $800 for an Energy Star home; however if a taxpayer takes that tax credit he/she is not eligible for the other efficiency tax credits described in this summary.

The legislation defines an energy efficient lighting system as an interior lighting system that meets the maximum reduction in lighting power density requirements for the federal energy efficient commercial building deduction under 26 U.S.C. sec. 179D, as in effect December 31, 2007; and it defines an energy-efficient heating, cooling, ventilation, or hot water system as a system that meets the requirements for the federal energy-efficient commercial building deduction under 26 U.S.C. sec. 179D, as in effect December 31, 2007.

See guidance issued by the Kentucky Department of Revenue (DOR) for additional information.

Kentucky also allows 30% personal tax credit for energy efficiency improvements made to the taxpayer's principal residence.

To claim the tax credit, use Form 5695-K - Kentucky Energy Efficiency Products Tax Credit - Form 41A720-S7 available on the Kentucky Department of Revenue website. Also available on the Kentucky DOR website is the 8908-K Kentucky Energy Star (Homes and Manufactured Homes) Tax Credit, for the Energy Star Home tax credit.

These credits may be applied during taxable years 2009-2015.


Incentive Contact

Contact Name Taxpayer Services
Department Kentucky Department of Revenue

Address 501 High Street

Place Frankfort, Kentucky
Zip/Postal Code 40620
Phone (502) 564-4581



Website http://revenue.ky.gov/
     
     

Authorities (Please contact the if there are any file problems.)

Authority 1: KRS § 141.435 et seq.
Date Effective 2009-01-01

Expiration Date 2015-12-31

Authority 2: H.B. 240

Date Enacted 2010-02-25

















  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]

References

  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency (DSIRE)"