KRS 141.4242 — Nonrefundable credit for producers of ethanol

(1) (a) For taxable years beginning after December 31, 2007, an ethanol producer
shall be eligible for a nonrefundable tax credit against the taxes imposed by
KRS 141.020 or 141.040 and 141.0401 in an amount certified by the
department under subsection (3) of this section. The credit rate shall be one
dollar ($1) per ethanol gallon produced, unless the total amount of approved
credit for all ethanol producers exceeds the annual ethanol tax credit cap. If
the total amount of approved credit for all ethanol producers exceeds the
annual ethanol tax credit cap, the department shall determine the amount of
credit each ethanol producer receives by multiplying the annual ethanol tax
credit cap by a fraction, the numerator of which is the amount of approved
credit for the e thanol producer and the denominator of which is the total
approved credit for all ethanol producers.
(b) The credit allowed under paragraph (a) of this subsection shall be applied both
to the income tax imposed under KRS 141.020 or 141.040 and to the limit ed
liability entity tax imposed under KRS 141.0401, with the ordering of credits
as provided in KRS 141.0205.
(2) The credit provided under subsection (1) of this section shall not be carried forward
to a return for any other period.
(3) Each ethanol produ cer eligible for the credit provided under subsection (1) of this
section shall file an ethanol tax credit claim for ethanol gallons produced in this
state on forms prescribed by the department by January 15 following the close of
the preceding calendar ye ar. The department shall determine the amount of the
approved credit based on the amount of ethanol produced in this state during the
preceding calendar year and shall issue a credit certificate to the ethanol producer by
April 15 following the close of the preceding calendar year.
(4) In the case of an ethanol producer that has a fiscal year end for purposes of
computing the tax imposed by KRS 141.020, 141.040, and 141.0401, the amount of
approved credit provided under subsection (1) of this section shall be claimed on
the return filed for the first fiscal year ending after the close of the preceding
calendar year.