KRS 143.021 — Tax credit for thin seam coal

(1) A nonrefundable severance tax credit against the severance tax imposed by KRS
143.020 shall be allowed for new permitted production after July 1, 2000, as
follows.
(a) For coal mined from above-drainage seams using deep mining or underground
mining methods, the credit shall be equal to:
1. Two and one -quarter percent (2.25%) of the gross value of coal with a
coal thickness of between twenty-seven (27) and thirty (30) inches; or
2. Three percent (3%) of the gross value of coal with a coal thickness of
less than twenty-seven (27) inches.
(b) For coal mined from below-drainage seams using deep mining or underground
mining methods, the credit shall be equal to:
1. Two and one -quarter percent (2.25%) of the gross value of coal with a
coal thickness of between thirty-two (32) and thirty-six (36) inches;
2. Three percent (3%) of the gross value of coal with a coal thickness of
between twenty-seven (27) and thirty-two (32) inches; or
3. Three and three-quarters percent (3.75%) of the gross value of coal with
a coal thickness of less than twenty-seven (27) inches.
(2) Coal thickness under subsection (1) of this section shall be based on the weighted
average isopach mapping of actual coal thickness by mine as certified by a
professional engineer for each reporting perio d. The taxpayer shall attach a copy of
the certified isopach mapping for each reporting period to the return filed for that
period.
(3) The taxpayer shall take the tax credit under this section in conjunction with the
taxpayer's monthly return.