Energy Efficiency Tax Credits (Personal) (Kentucky)
Last modified on February 12, 2015.
Financial Incentive Program
|Name||Energy Efficiency Tax Credits (Personal)|
|Incentive Type||Personal Tax Credit|
|Applicable Sector||Installer/Contractor, Multi-Family Residential, Residential|
|Eligible Technologies||Boilers, Building Insulation, Central Air conditioners, Doors, Furnaces, Heat pumps, Lighting, Water Heaters, Windows|
|Energy Category||Energy Efficiency Incentive Programs|
|Amount||30% of installed cost|
|Carryover Provisions||May be carried forward for one year|
|Equipment Requirements|| Attic Insulation: R-38 or higher|
Exterior Wall, Crawl Space, Basement Exterior Wall Insulation: R-13 or higher
|Maximum Incentive|| $500 maximum for all improvements. Technology caps are as follows: Insulation: $100; Windows and Storm Doors, Water Heater, Heat Pump, Air Conditioner, Advanced Main Air Circulating Fan: $250/unit|
$500 maximum for all improvements. Technology caps are as follows: Insulation: $100; Windows and Storm Doors, Water Heater, Heat Pump, Air Conditioner, Advanced Main Air Circulating Fan: $250/unit
|Program Administrator||Kentucky Department of Revenue|
In April 2008, Kentucky enacted legislation allowing a 30% state income tax credit for taxpayers who install certain energy efficiency measures on their principal residence or residential rental property.* These energy efficiency measures include:
- Qualified Energy Property Installation:** Water Heaters, Heat Pumps, Central Air Conditioners, Hot Water Boilers, Advanced Main Air Circulating Fans
- Weatherization Measures: Windows and Storm Doors, Added Insulation
The tax credit may not exceed $100 for insulation, and $250 for qualified energy property, windows and storm doors. The total tax credit may not exceed $500 for any combination of qualified energy property and weatherization measures.
Kentucky also allows an $800 tax credit for taxpayers who build a new Energy Star home for use as a principal residence, but this credit may not be taken in addition to the energy efficiency tax credits describe in this summary.
See guidance issued by the Kentucky Department of Revenue for additional information.
In addition, Kentucky allows a 30% state income tax credit for taxpayers that install certain energy efficiency measures on commercial property (click here for more information).
These credits may be applied during taxable years 2009-2015. 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.
* "Qualified Energy Property" must meet the efficiency guidelines specified in the federal tax credit for residential energy property.
|Contact Name||Taxpayer Services|
|Department||Kentucky Department of Revenue|
|Address||501 High Street|
Authorities (Please contact the if there are any file problems.)
|Authority 1:||KRS § 141.435 et seq.|
|Authority 2:||H.B. 240|
- Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.