{"data":{"id":"us-ky/krs-144.132","jurisdiction":"us-ky","citation":"KRS 144.132","heading":"Sales and use tax credit for aircraft fuel -- Reporting and payment","body":"requirements.\n(1) As used in this section:\n(a) \"Certificated air carrier\" means  an air carrier that is listed on the United\nStates Department of Transportation certificated air carrier list or a foreign\nindirect air carrier registered with the United States Department of\nTransportation;\n(b) \"Department\" means the Department of Revenue; and\n(c) \"Person\" has the same meaning as in KRS 139.010.\n(2) (a) Any  certificated air carrier which is engaged in the air transportation of\npersons or property for hire shall be entitled to a credit against the\nKentucky sales and use tax paid on aircraft fuel, including jet fuel, as\ndetermined by this section.\n(b) Certificated air carriers shall pay the first one million dollars ($1,000,000)\nin Kentucky sales and use tax due on the purchase of aircraft fuel,\nincluding jet fuel. The one million dollars ($1,000,000) shall be increased\nto reflect the sales and use tax on aviation fuel attributable to operations\nof any other company  when  such company  is purchased, merged,\nacquired, or otherwise combined with the certificated air carrier after the\nbase period. The increase shall be based on the tax applicable to aircraft\nfuel purchased  during the twelve (12) month  period immediately\npreceding the purchase, merger, or other acquisition by or in combination\nwith the certificated air carrier. The sales and use tax credit shall be an\namount  equal to the Kentucky sales and use tax otherwise applicable to\nthe  purchase of aircraft fuel, including jet fuel, purchased by the\ncertificated air carrier during each fiscal year, in excess of one million\ndollars ($1,000,000).\n(3) On  and after June 29, 2017, any person that:\n(a) Contracts with one  (1) or more  certificated air carriers for the\ntransportation by air of persons, property, or mail; and\n(b) Is responsible for the purchase and payment of aircraft fuel, including jet\nfuel to transport the persons, property, or mail;\nshall be entitled to a credit against the Kentucky sales and use tax paid on\naircraft fuel, including jet fuel, during the fiscal year in excess of one million\ndollars ($1,000,000).\n(4) Each certificated air carrier that qualifies for the credit authorized in subsection\n(2) of this section and every person that qualifies for the credit authorized in\nsubsection (3) of this section purchasing aircraft fuel, including jet fuel, on\nwhich Kentucky sales and use tax for the fiscal year is reasonably expected to\nexceed  one million dollars ($1,000,000) shall report and pay directly to the\ndepartment the tax applicable to the purchase of aircraft fuel, including jet fuel,\npurchased for storage use or other consumption during the fiscal year.\n(5) Each certificated air carrier that qualifies for the credit authorized in subsection\n(2) of this section and every person that qualifies for the credit authorized in\nsubsection (3) of this section that claims the sales and use tax credit shall file\nan annual sales and use tax reconciliation report with the department on or\nbefore October 15 of the fiscal year following the fiscal year for which the credit\nis claimed. The  report shall be in a form and  contain information and\ndocumentation as the department may  reasonably require to verify the\ncomputation of the tax credit against the tax imposed under KRS  139.200 and\n139.310.","path":["KRS Chapter 144"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=46117","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:37Z","sha256":"04fff1976759c0c4fbd304e83333f89d1b8ec8cbb42993282fb6d6a4e7b1e6a4","source_id":"us-ky","stale":false,"prev":"us-ky/krs-144.130","next":"us-ky/krs-144.135"},"notice":"GroundRules: Original legal text. Not legal advice."}