KRS 141.436 — Tax credit for installation of energy efficiency products for residential and commercial property -- Administrative regulations -- Reports

(1) (a) For taxable periods beginning after December 31, 2008, and beginning before
January 1, 2016, there is hereby created a nonrefundable credit against the tax
imposed under KRS 141.020 or 141.040, and KRS 141.0401, with the
ordering of credits as provided in KRS 141.0205. The credit shall apply if one
(1) or more of the items listed in paragraph (b) of this subsection is installed
during the taxable year in a dwelling unit located in the Commonwealth that is
owned by the taxpayer and used by the taxpayer as:
1. The taxpayer's principal place of residence; or
2. A single-family or multifamily residential rental unit.
(b) The tax credit shall equal thirty percent (30%) of the installed costs of:
1. Upgraded insulation, not to exceed one hundred dollars ($100);
2. Energy-efficient windows and storm doors, not to exceed two hundred
fifty dollars ($250); or
3. Qualified energy property, not to exceed two hundred fifty dollars
($250).
(c) In no case shall the total credits provided under this subsection exceed five
hundred dollars ($500) per taxpayer.
(2) (a) For taxable years beginning after December 31, 2008, and beginning before
January 1, 2016, there is hereby created a nonrefundable credit against the tax
imposed under KRS 141.020 or 141.040, and KRS 141.0401, with the
ordering of credits as provided in KRS 141.0205, if one (1) or more of the
items listed in paragraph (b) of this subsection is installed during the taxable
year on a dwelling unit located in the Commonwealth, or on property located
in the Commonwealth that is owned and used by the taxpayer as commercial
property.
(b) The tax credit shall equal:
1. Thirty percent (30%) of the installed costs of:
a. An active solar space-heating system;
b. A passive solar space-heating system;
c. A combined active solar space-heating and water-heating system;
d. A solar water-heating system; and
e. A wind turbine or wind machine; or
2. Three dollars ($3) per watt direct current (DC) of rated capacity of a
solar photovoltaic system.
(c) In no case shall the total tax credits provided in this subsection exceed:
1. Five hundred dollars ($500) per taxpay er if installed on a dwelling unit
located in the Commonwealth that is owned by the taxpayer and used by
the taxpayer as:
a. The taxpayer's principal place of residence; or
b. A single-family residential rental unit; or
2. One thousand dollars ($1,000) per taxpayer if installed on property
located in the Commonwealth that is owned and used by the taxpayer as:
a. A multifamily residential rental unit; or
b. Commercial property;
(3) (a) For taxable years beginning after December 31, 2008, and beginning before
January 1, 2016, there is hereby created a nonrefundable credit against the tax
imposed under KRS 141.020 or 141.040, and KRS 141.0401, with the
ordering of credits as provided in KRS 141.0205, if one (1) or more of the
following is installed during the t axable year on property located in the
Commonwealth that is owned and used by the taxpayer as commercial
property:
1. An energy-efficient interior lighting system; and
2. An energy-efficient heating, cooling, ventilation, or hot water system.
(b) The tax credit shall equal thirty percent (30%) of the installed costs of:
1. An energy-efficient interior lighting system, not to exceed five hundred
dollars ($500) per taxpayer; and
2. An energy-efficient heating, cooling, ventilation, or hot water system,
not to exceed five hundred dollars ($500) per taxpayer.
(c) In no case shall the total tax credits provided in this subsection exceed one
thousand dollars ($1,000) per taxpayer.
(d) For purposes of the tax credit provided by this subsection, "commercial
property" shall not include single-family or multifamily residential units.
(4) The tax credits provided under this section shall apply in the tax year in which the
installation is completed. If the credit cannot be taken in full in the year in which the
installation is completed, the tax credit may be carried forward one (1) year.
(5) The department may request copies of invoices, purchase receipts, installation
contracts, proof of installer's NABCEP certification, and any other information that
the department determines necessary to verify credits taken.
(6) If the taxpayer has taken the ENERGY STAR home or the ENERGY STAR
manufactured home tax credit provided under KRS 141.437, the tax credits
provided under this section shall not apply.
(7) The department shall establish, by administrative regulation, the guidelines and
technical requirements for items that are eligible for the tax credits provided under
subsection (2) of this section, including but not limited to requirements for capacity,
siting, plumbing, coll ector mountings, and pressurization. The department shall
enlist the assistance, cooperation, and recommendations of the Office of Energy
Policy and the Kentucky Pollution Prevention Center at the University of Louisville
in determining those guidelines an d technical requirements and may enlist their
assistance in evaluating the eligibility of credits taken under this section.
(8) On or before December 1, 2010, and on or before every December 1 thereafter, the
department shall report to the Legislative Rese arch Commission the total number
and gross amount of each type of tax credit claimed on returns processed during the
fiscal year ending prior to the December reporting date.