2014 Kentucky Revised Statutes CHAPTER 139 - SALES AND USE TAXES 139.518 Sales or use tax refund on energy-efficiency products used at manufacturing plant.
Download as PDF
139.518 Sales or use tax refund on energy-efficiency products used at
manufacturing plant.
(1)
(2)
(3)
(4)
(5)
(6)
"Energy efficiency project" means a project undertaken by a person engaged in
manufacturing whereby the person purchases new or replacement machinery
or equipment that reduces the consumption of energy or energy-producing
fuels in the manufacturing process at a plant facility in this state by at least
fifteen percent (15%) measured in megawatts, gallons, or other measurable
units of energy, while maintaining or increasing the number of units of
production for that same period. For purposes of this section, "machinery or
equipment" does not include:
(a) Windows, lighting, or other improvements to buildings; or
(b) Repair, replacement, and spare parts as defined in KRS 139.010.
(a) The consumption reduction and the production rate shall be calculated by
comparing the consumption and production rates during a twelve (12)
month period immediately after the new or replacement machinery or
equipment is placed in service with the consumption and production rates
for the twelve (12) month period submitted with the application for
preapproval as required in subsection (4) of this section.
(b) If the manufacturer believes that the method described in paragraph (a)
of this subsection does not accurately reflect the reduction in energy or
energy-producing fuels used in the manufacturing process, the
manufacturer may submit additional information to the department for
consideration.
Notwithstanding KRS 134.580(3) and 139.770, a person engaged in
manufacturing at a plant facility located in this state may apply for a refund
equal to the amount of Kentucky sales or use tax paid on the purchase of new
or replacement machinery or equipment for an energy efficiency project
purchased on or after July 1, 2008, reduced by the amount of vendor
compensation allowed under KRS 139.570.
The manufacturer shall file an application for preapproval with the department,
on a form provided by the department, prior to purchasing the new or
replacement machinery or equipment that includes:
(a) A description of the new or replacement machinery or equipment;
(b) Documentation of the amount of energy or energy-producing fuels
consumed in the twelve (12) month period prior to the application for
preapproval; and
(c) Any other information the department may request.
The department shall acknowledge receipt of the application for preapproval.
The manufacturer shall file an application for incentives that includes
documentation of:
(a) The achievement of the energy-efficiency standards required by
subsection (1) of this section within eighteen (18) months from the time
the machinery or equipment was placed in service; and
(b) Verification that the Kentucky sales and use tax was paid on the
purchase of the new or replacement machinery or equipment.
(7)
(8)
The burden of proof that the purchase of the machinery or equipment resulted
in a decrease in the consumption of energy or energy-producing fuels shall be
upon the applicant.
Interest shall not be allowed or paid on any refund made under this section.
Effective:August 1, 2008
History: Amended 2008 Ky. Acts ch. 95, sec. 12, effective August 1, 2008. -Created 2007 (2d Extra. Sess.) Ky. Acts ch. 1, sec. 17, effective August 30,
2007.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.