{"data":{"id":"us-ky/krs-143.024","jurisdiction":"us-ky","citation":"KRS 143.024","heading":"Tax incentive for purchase or severance of coal used in alternative fuel or","body":"gasification facility.\n(1) As used in this section:\n(a) \"Alternative fuel facility\" has the same meaning as in KRS 154.27-010;\n(b) \"Approved company\" has the same meaning as in KRS 154.27-010;\n(c) \"Authority\" has the same meaning as in KRS 154.27-010;\n(d) \"Base amount\" has the same meaning as in KRS 154.27-010;\n(e) \"Capital investment\" has the same meaning as in KRS 154.27-010;\n(f) \"Eligible project\" has the same meaning as in KRS 154.27-010;\n(g) \"Energy-efficient alternative fuel facility\" has the same meaning as in KRS\n154.27-010;\n(h) \"Gasification facility\" has the same meaning as in KRS 154.27-010; and\n(i) \"Tax incentive agreement\" has the same meaning as in KRS 154.27-010.\n(2) Notwithstanding any other provision of KRS 134.580 or this chapter, an approved\ncompany that purchases or severs coal that is subject to the tax imposed under KRS\n143.020 and that is specifically used by the approved company as feedstock for an\nalternative fuel facility, energy -efficient alternative fuel facility, or gasification\nfacility may be eligible for an incentive under KRS 154.27-060.\n(3) A company approved for incentives under KRS 154.27 -060 shall file a request for\nthe incentive with the depar tment within sixty (60) days of the completion of the\nconstruction, retrofit, or upgrade of the facility. In subsequent years, the approved\ncompany shall file a request for the incentive within sixty (60) days following the\nend of each calendar year. The request for incentives shall be in the form prescribed\nby the department through the promulgation of administrative regulations in\naccordance with KRS Chapter 13A. The request for incentives shall include but not\nbe limited to the following information:\n(a) Verification of the base amount;\n(b) Verification of the tons of coal purchased and used or severed and used by the\napproved company as feedstock for an alternative fuel facility, energy -\nefficient alternative fuel facility, or gasification facility during  the calendar\nyear for which the request for incentives is being made;\n(c) Verification that the minimum capital investment as set forth in the tax\nincentive agreement has been made;\n(d) Verification of the output of coal-derived alternative transportation fuels, coal-\nderived synthetic natural gas, coal -derived liquid fuels, coal -derived energy-\nefficient alternative fuels, or other coal -derived chemicals or chemical\nfeedstocks; and\n(e) Any other information that the department may require.\n(4) To assist in determining the amount of coal purchased and used or severed and used\nthat is eligible for the incentive, the department shall obtain from the University of\nKentucky Center for Applied En ergy Research a reasonable and typical estimate of\nthe tons of coal needed to produce a given output of coal -derived alternative\ntransportation fuels, coal -derived synthetic natural gas, coal -derived liquid fuels,\ncoal-derived energy-efficient alternative fuels, or other coal -derived chemicals or\nchemical feedstocks, considering:\n(a) The type of coal to be used;\n(b) Equipment to be employed;\n(c) Size and output of the facility;\n(d) Slate of products produced; and\n(e) Other characteristics of the alternative fuel facility, energy-efficient alternative\nfuel facility, or gasification facility.\n(5) (a) The department and the authority shall review the request for incentives\njointly and shall verify that the request for incentives meets all requirements\nestablished by statute and administrative regulation.\n(b) The department shall verify the tax paid pursuant to KRS 143.020 on the coal\npurchased or severed by the approved company and used as feedstock for an\nalternative fuel facility, energy-efficient alternative fuel facility, or gasification\nfacility during the calendar year for which the application was submitted and\nshall determine the amount of the tax paid that qualifies for distribution to the\napproved company pursuant to this section.\n(c) The incentive amou nt shall be distributed to the approved company in\nquarterly installments beginning on July 1 of the year following the calendar\nyear for which the request for incentives required under this section was\nsubmitted.\n(6) The approved company seeking incentive s shall execute information -sharing\nagreements prescribed by the department with vendors from which it purchased coal\nto verify the value of coal purchased by the approved company and used as\nfeedstock for an alternative fuel facility, energy -efficient alternative fuel facility, or\ngasification facility and the amount of tax paid under KRS 143.020 on such coal.\n(7) The department shall notify the authority of the incentive distributed to each\napproved company upon request.","path":["KRS Chapter 143"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=29236","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:36Z","sha256":"b49a5e06aa0b45bb26d6e0991299c166bb052b80d4a5ddbd22d3cecabbffc52e","source_id":"us-ky","stale":false,"prev":"us-ky/krs-143.023","next":"us-ky/krs-143.025"},"notice":"GroundRules: Original legal text. Not legal advice."}