Sales Tax Exemption for Manufacturing Facilities (Kentucky)
Last modified on February 12, 2015.
Financial Incentive Program
|Name||Sales Tax Exemption for Manufacturing Facilities|
|Incentive Type||Sales Tax Incentive|
|Eligible Technologies||Wind, Energy Efficient Manufacturing Machinery and Equipment|
|Energy Category||Energy Efficiency Incentive Programs, Renewable Energy Incentive Programs|
|Amount||100% sales and use tax refund|
|Equipment Requirements||Must reduce energy consumption by 15%|
|Maximum Incentive||50% of capital investment in the eligible project|
|Program Administrator||Office of Energy Policy|
In August 2007 Kentucky established the Incentives for Energy Independence Act to promote the development of renewable energy and alternative fuel facilities, energy efficient buildings, alternative fuel vehicles, research and development activities and other energy initiatives. This includes a sales tax exemption which allows manufacturers to apply for a refund for the amount of sales or use tax paid on the purchase of new or replacement equipment for renewable energy or energy efficiency projects.
Energy Efficiency projects must decrease the measurable amount of energy used by the facility by at least 15% percent while maintaining or increasing the production for the same period.
The types of equipment that are allowable under this policy are not specified, but the program explicitly excludes improvements to buildings (w.g. windows, lighting) and replacement parts. Project should reduce consumption of energy or energy-producing fuels in the manufacturing process. The manufacturer must file an application for pre-approval with the Department of Revenue (Application 51A300) prior to purchasing new or replacement equipment, and should initiate the process with the Kentucky Cabinet for Economic Development. This incentive applies to equipment purchased on or after July 1, 2008.
|Contact Name||Don Goodin|
|Department||Kentucky Cabinet for Economic Development|
|Division||Department of Financial Incentives|
|Address||Old Capitol Annex|
|Address 2||300 West Broadway|
|Phone||(502) 564-4554 Ext:3413|
|Contact Name||Ricky Haven|
|Department||Kentucky Department of Revenue|
|Division||Sales and Use Tax Office of Sales and Excise Taxes|
|Address||501 High Street|
Authorities (Please contact the if there are any file problems.)
|Authority 1:||KRS § 139.518|
|Authority 2:||103 KAR 31:200|
- Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.