Energy Efficiency Tax Credits (Personal) (Kentucky)

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Summary

Last modified on February 12, 2015.

Financial Incentive Program

Place Kentucky

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
Active Incentive Yes

Implementing Sector State/Territory
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
Floor Insulation: R-19 or higher
Electric Heat Pump Water Heater: Must yield an energy factor of at least 2.0 in the standard DOE test procedure
Split Central Air Conditioning System: SEER of 15, EER of 12.5
Packaged Central Air Conditioning Systems: SEER of 14, EER of 12
Natural Gas, Propane or Oil Water Heater: Energy factor of .80 or higher
Natural Gas, Propane or Oil Furnace or Hot Water Boiler: Annual fuel utilization efficiency rate of at least 95

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






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

Date added to DSIRE 2008-05-01
Last DSIRE Review 2012-12-12



References DSIRE[1]


Summary

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.


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)"