{"data":{"id":"us-ky/krs-141.4231","jurisdiction":"us-ky","citation":"KRS 141.4231","heading":"Renewable chemical production tax credit.","body":"(1) (a) An eligible business that:\n1. Has entered into an agreement under KRS 246.700(3);\n2. Receives certification from the Department of Agriculture of the\npreliminary tax credit under KRS 246.700(6); and\n3. Receives authorization from the department regarding t he amount of tax\ncredit that is allowed;\nmay claim the renewable chemical production tax credit in an amount equal to\nthe amount authorized by the department as provided in KRS 141.423.\n(b) For taxable years beginning on or after January 1, 2021, the rene wable\nchemical production tax credit shall be nonrefundable, nontransferable, and\nallowed against taxes imposed by KRS 141.020 or 141.040 and 141.0401,\nwith the ordering of the credits as provided in KRS 141.0205.\n(c) 1. Any amount of credit that a taxpayer is unable to utilize during a taxable\nyear may be carried forward for use in a succeeding taxable year for a\nperiod not to exceed three (3) taxable years.\n2. Any amount of credit not used within the three (3) taxable years shall be\nlost.\n3. No amount of credit may be carried back to a prior taxable year by any\ntaxpayer.\n(2) If the eligible business is a pass -through entity, the eligible business may apply the\ncredit against the limited liability entity tax imposed by KRS 141.0401, and shall\npass the credi t through to its members, partners, or shareholders in the same\nproportion as the distributive share of income or loss is passed through.\n(3) If the Department of Agriculture r escinds any tax credit under KRS 246.700(9), the\nrepayment of any tax credit by the taxpayer shall be:\n(a) Considered a tax payment due and payable to the Kentucky State Treasurer;\nand\n(b) Collected by the department in the same manner as failure to pay th e tax\nshown due or required to be shown due with the filing of that return.\n(4) (a) In order for the General Assembly to evaluate the Renewable Chemical Tax\nCredit Program, the department, in cooperation with the Department of\nAgriculture, shall submit to the Interim Joint Committee on Appropriations\nand Revenue a cumulative report describing the activities of the program by\ntaxable year.\n(b) The report shall include:\n1. The aggregate number of pounds, by each type of renewable chemicals\nproduced in this st ate, for all successful tax credit applicants under the\nprogram;\n2. The aggregate gross receipts from sales, by each type of renewable\nchemicals produced in this state, for all successful tax credit applicants\nunder the program;\n3. The number of employees located in this state of all successful tax credit\napplicants during the calendar year immediately preceding the calendar\nyear for which the successful applicants first applied for a tax credit\nunder the program;\n4. The number of employees located in this state of all successful tax credit\napplicants during each calendar year that the tax credit is claimed;\n5. The number of tax credit certificates and aggregate amount of tax credits\nawarded under the program for each calendar year; and\n6. For each eligible business issued a renewable chemical production tax\ncredit during each taxable year:\na. The county within which the eligible business is producing the\nrenewable chemical;\nb. The amount of the tax credit claimed by the eligible business;\nc. The manner in wh ich the eligible business first qualified as an\neligible business, whether by organizing, expanding, or locating in\nthis state;\nd. The amount of renewable chemical production tax credit claimed\nduring each taxable year; and\ne. Any repayment of incentives b y the business, if the business does\nnot meet the requirements of the agreement.","path":["KRS Chapter 141"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=49929","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:35Z","sha256":"ac097231a5d57d90c75a3af05f85d4c634939247b3e4c1b92e1d71516d433204","source_id":"us-ky","stale":false,"prev":"us-ky/krs-141.423","next":"us-ky/krs-141.424"},"notice":"GroundRules: Original legal text. Not legal advice."}