{"data":{"id":"us-ky/krs-139.518","jurisdiction":"us-ky","citation":"KRS 139.518","heading":"Sales or use tax refund on energy -efficiency products used at","body":"manufacturing plant.\n(1) \"Energy efficiency project\" means a project undertaken by a person engaged in\nmanufacturing whereby the person purchases new or replacement machinery or\nequipment that reduces the consumption of energy or energy -producing fuels in the\nmanufacturing process at a plant facility in this state by at least fifteen percent\n(15%) measured in megawatts, gallons, or other measurable units of energy, while\nmaintaining or incre asing the number of units of production for that same period.\nFor purposes of this section, \"machinery or equipment\" does not include:\n(a) Windows, lighting, or other improvements to buildings; or\n(b) Repair, replacement, and spare parts as defined in KRS 139.010.\n(2) (a) The consumption reduction and the production rate shall be calculated by\ncomparing the consumption and production rates during a twelve (12) month\nperiod immediately after the new or replacement machinery or equipment is\nplaced in service with the consumption and production rates for the twelve\n(12) month period submitted with the application for preapproval as required\nin subsection (4) of this section.\n(b) If the manufacturer believes that the method described in paragraph (a) of this\nsubsection does not accurately reflect the reduction in energy or energy -\nproducing fuels used in the manufacturing process, the manufacturer may\nsubmit additional information to the department for consideration.\n(3) Notwithstanding KRS 134.580(3) and 139.770,  a person engaged in manufacturing\nat a plant facility located in this state may apply for a refund equal to the amount of\nKentucky sales or use tax paid on the purchase of new or replacement machinery or\nequipment for an energy efficiency project purchase d on or after July 1, 2008,\nreduced by the amount of vendor compensation allowed under KRS 139.570.\n(4) The manufacturer shall file an application for preapproval with the department, on a\nform provided by the department, prior to purchasing the new or rep lacement\nmachinery or equipment that includes:\n(a) A description of the new or replacement machinery or equipment;\n(b) Documentation of the amount of energy or energy -producing fuels consumed\nin the twelve (12) month period prior to the application for preapproval; and\n(c) Any other information the department may request.\n(5) The department shall acknowledge receipt of the application for preapproval.\n(6) The manufacturer shall file an application for incentives that includes\ndocumentation of:\n(a) The achievement of the energy-efficiency standards required by subsection (1)\nof this section within eighteen (18) months from the time the machinery or\nequipment was placed in service; and\n(b) Verification that the Kentucky sales and use tax was paid on t he purchase of\nthe new or replacement machinery or equipment.\n(7) The burden of proof that the purchase of the machinery or equipment resulted in a\ndecrease in the consumption of energy or energy -producing fuels shall be upon the\napplicant.\n(8) Interest shall not be allowed or paid on any refund made under this section.","path":["KRS Chapter 139"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=28911","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:32Z","sha256":"b483c7dfc6f6b5d32bcb410bff7c14a2b72ad3cfd0db856e05a11e4c4b84fa7a","source_id":"us-ky","stale":false,"prev":"us-ky/krs-139.517","next":"us-ky/krs-139.519"},"notice":"GroundRules: Original legal text. Not legal advice."}