{"data":{"id":"us-ky/krs-141.423","jurisdiction":"us-ky","citation":"KRS 141.423","heading":"Nonrefundable credit for biodiesel producer, biodiesel blender, or","body":"renewable diesel producer.\n(1) (a) A biodiesel producer, biodiesel blender, or renewable diesel producer shall be\nentitled to a nonrefundable tax credit against the taxes imposed by KRS\n141.020 or 141.040 and KRS 141.0401 in an amount certified by the\ndepartment under subsection (4) of this section.\n(b) The credit rate shall be:\n1. One dollar ($1) per biodiesel gallon produced by a biodiesel producer;\n2. One dollar ($1) per gallon of biodiesel used in the blending process by a\nbiodiesel blender; and\n3. One dollar ($1) per gallon of renewable diesel produced by a renewable\ndiesel producer;\nunless the total amount of approved credit for all biodiesel producers,\nbiodiesel blenders, an d renewable diesel producers exceeds the annual\nbiodiesel and renewable diesel tax credit cap for calendar years beginning\nprior to January 1, 2021, or the annual biodiesel, renewable diesel, and\nrenewable chemical production tax credit cap for calendar ye ars beginning on\nor after January 1, 2021.\n(c) For calendar years beginning prior to January 1, 2021, if the total amount of\napproved credit for all biodiesel producers, biodiesel blenders, and renewable\ndiesel producers exceeds the annual biodiesel and re newable diesel tax credit\ncap, the department shall determine the amount of credit each biodiesel\nproducer, biodiesel blender, and renewable diesel producer receives by\nmultiplying the annual biodiesel and renewable diesel tax credit cap by a\nfraction, the  numerator of which is the amount of approved credit for the\nbiodiesel producer, biodiesel blender, and renewable diesel producer and the\ndenominator of which is the total approved credit for all biodiesel producers,\nbiodiesel blenders, and renewable diesel producers.\n(d) For calendar years beginning on or after January 1, 2021, if the total amount\nof approved credit for all biodiesel producers, biodiesel blenders, renewable\ndiesel producers, and renewable chemical producers exceeds the annual\nbiodiesel, renewable diesel, and renewable chemical production tax credit cap,\nthe department shall determine the amount of credit each biodiesel producer,\nbiodiesel blender, renewable diesel producer, and renewable chemical\nproducer receives by multiplying the annual biodiesel, renewable diesel, and\nrenewable chemical production tax credit cap by a fraction, the numerator of\nwhich is the amount of approved credit for the each producer and the\ndenominator of which is the total approved credit for all producers.\n(e) 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 credits\nas provided in KRS 141.0205.\n(2) Re-blending of blended biodiesel shall not qualify for the credit provided under this\nsection.\n(3) The credit allowed in subsection (1) of this section shall not be carried forward to a\nreturn for any other period.\n(4) (a) Each biodiesel producer, biodiesel blender, and renewable diesel producer\neligible for the credit provided under subsection (1) of this section shall file a\ntax credit claim for biodiesel gallons produced or blended in this state or for\nrenewable diesel produced in this state on forms prescribed by the department\nby the fifteenth day of the first month following the close of the preceding\ncalendar year.\n(b) The department shall determine the amount of the approved credit based on\nthe amount of biodiesel pro duced, biodiesel blended, renewable diesel\nproduced, or renewable chemical produced in this state during the preceding\ncalendar year and issue a credit certificate to the biodiesel producer, biodiesel\nblender, renewable diesel producer, or renewable chemic al producer by the\nfifteenth day of the fourth month following the close of the calendar year.\n(5) In the case of a biodiesel producer, biodiesel blender, renewable diesel producer, or\nrenewable chemical producer that has a fiscal year end for purposes of computing\nthe tax imposed by KRS 141.020, 141.040, and 141.0401, the amount of approved\ncredit shall be claimed on the return filed for the first fiscal year ending after the\nclose of the preceding calendar year.","path":["KRS Chapter 141"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=49931","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:35Z","sha256":"c097b4a377980acb6192b59b29067472b3ae692a16c6fd09be97fa97a1ceb47c","source_id":"us-ky","stale":false,"prev":"us-ky/krs-141.422","next":"us-ky/krs-141.4231"},"notice":"GroundRules: Original legal text. Not legal advice."}