KRS 139.517 — Sales tax incentive for alternative fuel, gasification, and renewable energy facilities

(1) As used in this section:
(a) "Approved company" has the same meaning as in KRS 154.27-010;
(b) "Authority" means the Kentucky Economic Development Finance Aut hority
established under KRS 154.20-010;
(c) "Eligible project" has the same meaning as in KRS 154.27-010; and
(d) "Tax incentive agreement" has the same meaning as in KRS 154.27-010.
(2) Notwithstanding any other provision of KRS 134.580 or this chapter, an approved
company constructing, retrofitting, or upgrading an eligible project may be eligible
for a sales tax incentive of up to one hundred percent (100%) of the Kentucky sales
or use tax paid on tangible personal property purchased during the construc tion,
retrofit, or upgrade of the eligible project as provided in KRS 154.27 -070. The
tangible personal property shall be incorporated into the eligible project to qualify
for the sales tax incentive.
(3) The authority shall notify the department upon appr oval of an eligible project. The
notification shall include the name of the eligible project, the name of the approved
company, and the date on which the approved company is eligible to receive
incentives under this section.
(4) (a) An approved company see king an incentive under this section shall file a
request for incentives within sixty (60) days following the end of the calendar
year in which the activation date occurs. The request shall include all
documentation relating to the payment of the sales and use tax.
(b) In subsequent years, the approved company shall file a request for incentives
within sixty (60) days following the end of each calendar year.
(c) The approved company shall file a final request for incentives within sixty
(60) days from the e arlier of the completion of the construction, retrofit, or
upgrade of the eligible project, or the five (5) year anniversary of the
activation date.
(d) The request for incentives shall be in the form prescribed by the department
through the promulgation o f administrative regulations in accordance with
KRS Chapter 13A.
(5) Interest shall not be allowed or paid on any sales tax incentive payment made under
the provisions of this section.
(6) The sales tax incentive shall be reduced by the amount of vendor compensation
allowed under KRS 139.570.
(7) The approved company seeking the sales tax incentive payment shall execute
information-sharing agreements prescribed by the department with contractors,
vendors, and other related parties to verify the cos ts of tangible personal property
eligible for the sales tax incentive payment under this section.
(8) The department shall notify the authority of the incentive distributed to each
approved company upon request.