{"data":{"id":"us-ky/krs-141.418","jurisdiction":"us-ky","citation":"KRS 141.418","heading":"Nonrefundable credit for voluntary environmental remediation.","body":"(1) As used in this section:\n(a) \"Hazardous substances\" shall have the meaning provided in KRS 224.1-400;\n(b) \"Pollutant or contaminant\" shall have the meaning provided in KRS 224.1 -\n400;\n(c) \"Petroleum\" and \"petroleum products\" shall have the meaning provided in\nKRS 224.60-115;\n(d) \"Release\" shall have the meaning as provided in either or both KRS 224.1-400\nand 224.60-115;\n(e) \"Qualifying voluntary environmental remediation property\" means real\nproperty subject to the provisions of KRS 224.1 -400, 224.1-405, or 224.60-\n135 where the Energy and Environment Cabinet has made a determination\nthat:\n1. All releases of hazardous substances, pollutants, contaminants,\npetroleum, or petroleum products on the property occurred prior to the\nproperty owner's acquisition of the property;\n2. The property owner made all appropriate inquiry into previous\nownership and uses of the property in accordance with generally\naccepted practices;\n3. The property owner or a responsible party has provided all legally\nrequired notices with resp ect to hazardous substances, pollutants,\ncontaminants, petroleum, or petroleum products found at the property;\n4. The property owner is in compliance with all land use restrictions and\ndoes not impede the effectiveness or integrity of any institutional\ncontrol;\n5. The property owner complied with any information request or\nadministrative subpoena under KRS Chapter 224; and\n6. The property owner is not affiliated with any person who is potentially\nliable for the release of hazardous substances, pollutants, c ontaminants,\npetroleum, or petroleum products on the property pursuant to KRS\n224.1-400, 224.1-405, or 224.60-135, through:\na. Direct or indirect familial relationship;\nb. Any contractual, corporate, or financial relationship, excluding\nrelationships created by instruments conveying or financing title or\nby contracts for sale of goods or services; or\nc. Reorganization of a business entity that was potentially liable;\n(f) \"Expenditures\" means payment for work to characterize the extent of\ncontamination and to remediate the contamination at a qualifying voluntary\nenvironmental remediation property; and\n(g) \"Taxpayer\" means an individual subject to tax under KRS 141.020 or a\ncorporation subject to tax under KRS 141.040.\n(2) (a) There shall be allowed a nonrefundable credit against the tax imposed under\nKRS 141.020 or 141.040 for taxable years beginning after December 31,\n2004, and against the tax imposed by KRS 141.0401 for taxab le years\nbeginning after December 31, 2006, for taxpayer expenditures made at a\nqualifying voluntary environmental remediation property in order to correct\nthe effect of a release of hazardous substances, pollutants, contaminants,\npetroleum, or petroleum products on the property pursuant to KRS 224.1-400,\n224.1-405, or 224.60 -135, consistent with a corrective action plan approved\nby the Energy and Environment Cabinet pursuant to KRS 224.1 -400, 224.1-\n405, or 224.60 -135, and provided the cleanup was not finan ced through a\npublic grant program or the petroleum storage tank environmental assurance\nfund.\n(b) The credit allowed under paragraph (a) of this subsection shall be applied both\nto the income tax imposed under KRS 141.020 or 141.040 and to the limited\nliability entity tax imposed under KRS 141.0401, with the ordering of the\ncredits as provided in KRS 141.0205.\n(3) The maximum total credit for each taxpayer shall not exceed one hundred fifty\nthousand dollars ($150,000). For purposes of this section, an affi liated group of\ntaxpayers required to file a consolidated return under KRS 141.200 shall be treated\nas one (1) taxpayer.\n(4) A taxpayer claiming a credit under this section shall submit receipts to the Energy\nand Environment Cabinet in proof of the expendi tures claimed. The Energy and\nEnvironment Cabinet shall verify the receipts. After the receipts are verified, the\nFinance and Administration Cabinet shall notify the taxpayer of eligibility for the\ncredit.\n(5) The credit may be first claimed on the income tax return of the taxpayer filed in the\ntaxable year during which the credit was certified. The amount of the allowable\ncredit for any taxable year shall be twenty -five percent (25%) of the maximum\ncredit approved. The credit may be carried forward for ten  (10) successive taxable\nyears.\n(6) If the taxpayer is a pass -through entity, the taxpayer shall apply the credit against\nthe limited liability entity tax imposed by KRS 141.0401, and shall also pass the\ncredit through to its members, partners, or sharehol ders in the same proportion as\nthe distributive share of income or loss is passed through.","path":["KRS Chapter 141"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=29142","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:35Z","sha256":"75234a9a75bcf98b2a207201a46334a8033c629830ac23fb5e38414080bf1741","source_id":"us-ky","stale":false,"prev":"us-ky/krs-141.417","next":"us-ky/krs-141.419"},"notice":"GroundRules: Original legal text. Not legal advice."}