Renewable Energy Tax Credit (Personal) (Kentucky)
Last modified on February 12, 2015.
Financial Incentive Program
|Name||Renewable Energy Tax Credit (Personal)|
|Incentive Type||Personal Tax Credit|
|Applicable Sector||Residential, Multi-Family Residential|
|Eligible Technologies||Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Geothermal Heat Pumps|
|Energy Category||Renewable Energy Incentive Programs|
|Amount|| PV: 3/W DC |
All other systems: 30% of eligible costs
|Carryover Provisions||Excess credit may be carried forward for one year.|
|Equipment Requirements|| Solar water heaters must use OG-100 SRCC certified collectors with minimum 5-year warranty.|
PV systems must meet the requirements of Article 690 of the National Electrical Code, and use solar photovoltaic panels and inverters that are rated and listed by Underwriters Laboratories.
|Installation Requirements||Solar hot water, active solar space heating, and PV systems must be installed by a NABCEP-certified installer.|
|Maximum Incentive||500 for solar and wind installations; 250 for geothermal installations.|
|Program Administrator||Kentucky Department of Revenue|
|References||DSIREDatabase of State Incentives for Renewables and Efficiency|
In April 2008, Kentucky enacted legislation establishing a 30% state income tax credit for certain renewable energy installations on residential and commercial property (see the Kentucky Renewable Energy Tax Credit (Corporate) for more information on taking the credit for installations on commercial property).
Kentucky taxpayers may take the 30% credit against individual income taxes for any of the following equipment installed on their principal residence:
- Active or passive solar space-heating systems
- Combined active solar space-heating and water-heating systems
- Solar hot water systems
- Wind turbines
- Closed-loop geothermal heat pumps
- Open-loop geothermal heat pumps
- Direct expansion (DX) geothermal heat pumps
The maximum tax credit allowed per taxpayer is $250 for geothermal technologies, and $500 for solar hot water and wind technologies. In addition, Kentucky residents may take a credit equal to $3.00 per watt (DC) of rated capacity for the installation of a photovoltaic (PV) system, with a maximum credit of $500.
To be eligible, wind and solar hot water equipment must have a manufacturer’s warranty of five years or more. Solar hot water systems must also have an installer's warranty of two years or more, and must use collectors certified by the Solar Rating and Certification Corporation (SRCC) under OG-100. Solar energy systems must be installed by a North American Board of Certified Energy Practitioners (NABCEP)-certified installer. PV panels and inverters must meet article 690 of the National Electrical Code (NEC) and be certified by Underwriters Laboratories (UL).
Wind turbines must meet the wind industry consensus standards developed by the American Wind Energy Association (AWEA) and U.S. Department of Energy. Wind turbines must also meet the requirements of article 705 of the NEC, and must be UL-certified. Geothermal systems must meet certain guidelines for their Energy Efficiency Ratio (EER) and Coefficient of Performance (COP).
The credit may be carried forward for one year. It is effective for 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 web site.
|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.|
- Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.