2014 Kentucky Revised Statutes CHAPTER 141 - INCOME TAXES 141.041 Tax credit for corporations for installing, modifying or utilizing coal for manufacturing or heating.
Download as PDF
141.041 Tax credit for corporations for installing, modifying or utilizing coal
for manufacturing or heating.
(1)
(2)
(3)
(4)
(5)
There shall be allowed a credit against the tax imposed on any corporation
subject to taxation under KRS 141.040 and 141.0401, and which, on or after
January 1, 1984, installs, modifies, and utilizes facilities located in Kentucky for
generating steam or hot water for space-heating or materials processing or for
providing direct heat for industrial processes in the following ways:
(a) Replacement of an existing heat-generating facility not capable of using
coal as a fuel with one in which coal can be used;
(b) Erection of a heat-generating facility additional to any existing
heat-generating facility or facilities and capable of using coal as a fuel;
(c) Refurbishment for coal utilization of heat-generating facilities which were
at one time capable of using coal but which had been altered to allow use
of other fuels;
(d) Alteration of an existing heat-generating facility not capable of utilizing
coal in such ways as to allow the use of coal;
(e) Substitution of coal for other fuels in any heat-generating facility which on
January 1, 1984, was in existence and capable of utilizing coal and other
fuels. Substitution means the increased heat input in BTU from coal
matched by equal decreases of heat input in equivalent measures to BTU
from other fuels, based upon relative fuel usage in the calendar year
preceding the year in which the substitution occurred.
The amount of the allowable credit shall be equal to four and one-half percent
(4.5%) of the purchase price of the coal subject to taxation under KRS Chapter
143 consumed or substituted in each eligible heating facility as described in
subsection (1) of this section, minus any transporting cost included in the
purchase price.
The credit shall be allowed for ten (10) years consecutive from the date of the
initial installation, modification, or utilization of any heat-generating facility
installed or modified on and after January 1, 1984, as defined in subsection
(1)(a), (b), (c), and (d) of this section or ten (10) years consecutive from the
filing of a fuel-switching credit claim in subsection (1)(e) of this section.
The credit allowable under this section shall be applied against both the
taxpayer's income tax liability and the taxpayer's tax liability under the limited
liability entity tax imposed by KRS 141.0401, with the ordering of the credits as
provided in KRS 141.0205, and no part of the credit shall be applicable to the
tax imposed by KRS 141.040 or 141.0401 for any other taxable year.
A corporation claiming the credit under this section must submit proof of the
installation, modification, utilization or substitution as required by regulations
issued by the Department of Revenue prior to the claiming of such credit.
Effective:June 28, 2006
History: Amended 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 15, effective June
28, 2006. -- Amended 2005 Ky. Acts ch. 85, sec. 474, effective June 20, 2005. -Amended 1994 Ky. Acts ch. 57, sec. 2, effective July 15, 1994. -- Created 1984
Ky. Acts ch. 411, sec. 1, effective July 13, 1984.
Legislative Research Commission Note (6/28/2006). 2006 (1st Extra Sess.) Ky.
Acts ch. 2, sec. 73, provides that "unless a provision of this Act specifically
applies to an earlier tax year, the provisions of this Act shall apply to taxable
years beginning on or after January 1, 2007."
Legislative Research Commission Note (7/15/94). The changes to this statute
from 1994 Ky. Acts ch. 57 apply "to taxable years beginning after December 31,
1993." 1994 Ky. Acts ch. 57, sec. 4.
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.