Kentucky

Summary: Under its Energy Efficiency Tax Credits program, Kentucky offers a 30% income tax credit for individuals and businesses for energy-efficient equipment installed in their residential or commercial properties between December 31st, 2008 and January 1st, 2016.  The residential tax credit, which includes single and multifamily rental units, cannot exceed a total of $500 per taxpayer for: upgraded insulation, not to exceed $100; energy-efficient windows and storm doors, not to exceed $250, or; qualified energy property, not to exceed $250.

For commercial properties, which do not include single or multifamily residential units, the tax credit cannot exceed $500 per taxpayer for either energy-efficient interior lighting systems or for energy-efficient HVAC and hot water systems. The total tax credit cannot exceed $1,000 per taxpayer for any combination of HVAC and lighting systems. 

Kentucky also provides a tax credit for individuals who build or sell a qualified ENERGY STAR home. The tax credit is equal to $800 if the taxpayer builds an ENERGY STAR home or $400 if the taxpayer sells an ENERGY STAR manufactured home.

Under the Sales Tax Exemption for Manufacturing Facilities program, Kentucky allows for a 100% sales tax refund for new or replacement machinery and equipment dedicated to an energy-efficiency project purchased on or after July 1st 2008 that reduces energy consumption by at least 15% while maintaining or increasing production.  "Machinery and equipment" does not include windows, lighting, other improvements to the building, or repair, replacement, and spare parts.

Links:

• For an overview of Kentucky's tax incentives, please visit DSIRE.
• Click on the following to peruse the text of the bill regarding the Energy Efficiency Tax Credits. 
• Click on the following to peruse the text of the bill regarding the Sales Tax Exemption for Manufacturing Facilities.
• For more information on the Energy Efficiency Tax Credits, please visit the Kentucky Department of Revenue.
• For more information on the Sales Tax Exemption for Manufacturing Facilities, please visit the Kentucky Department of Revenue.

Contact:

For information on the Sales Tax Exemption:
James Bush
Phone: (502) 564-7192
E-Mail: james.bush@ky.gov

Last Updated 06/23/2009

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