{"data":{"id":"us-ky/krs-154.27-010","jurisdiction":"us-ky","citation":"KRS 154.27-010","heading":"Definitions for subchapter.  (Effective July 1, 2021)","body":"As used in this subchapter:\n(1) \"Activation date\" means  the date on which an approved company  begins\nincurring recoverable costs or engaging in recoverable activity pursuant to the\ntax incentive agreement. The activation date shall be set forth in the tax\nincentive agreement and shall be a date within five (5) years of the date of final\napproval of the tax incentive agreement. The authority may extend the five (5)\nyear period to no more than seven (7) years upon written application for an\nextension by the approved company. To implement the activation date, the\napproved company  shall notify the authority of its intent to activate the tax\nincentives authorized in the tax incentive agreement. The activation date shall\napply to all incentives included in the tax incentive agreement regardless of\nwhether  the approved company  has met the requirements to receive all\nincentives at that time. If the approved company  does not implement the\nactivation date before the date established in the tax incentive agreement, the\nactivation date shall be the date established in the tax incentive agreement;\n(2) \"Affiliate\" has the same meaning as in KRS 154.22-010;\n(3) (a) \"Alternative fuel facility\" means a facility located in Kentucky that is newly\nconstructed on or after August 30, 2007, or an existing facility located in\nKentucky that is retrofitted or upgraded on or after August 30, 2007, and\nthat, after the new construction, retrofit, or upgrade, primarily produces for\nsale alternative transportation fuels. For a retrofit of an existing facility, the\nnew  modification or addition within the facility shall primarily produce\nalternative transportation fuel for sale.\n(b) The alternative fuel facility may produce electricity as a by-product if the\nprimary purpose for which the facility is constructed, retrofitted, or\nupgraded, and the primary function of the facility remains the production\nand sale of alternative transportation fuels;\n(4) \"Alternative transportation fuels\" has the same meaning as in KRS 152.715;\n(5) \"Approved  company\"  means  a  corporation, limited liability company,\npartnership, registered limited liability partnership, sole proprietorship, business\ntrust, or any other entity approved for incentives for an eligible project;\n(6) \"Authority\" means  the Kentucky Economic  Development Finance Authority\nestablished by KRS 154.20-010;\n(7) \"Base amount\" means the tons of coal, thousand (1000) cubic foot units (Mcf)\nof natural gas, or gallons of natural gas liquids purchased and used or severed\nand used by the approved company as feedstock for an eligible project during\nthe twelve (12) months prior to the month in which the approved company first\nbegins receiving incentives under KRS  143.024 or 143A.025, and 154.27-060,\nthat were subject to the tax imposed by KRS 143.020 or 143A.020;\n(8) \"Blockchain technology\" or \"blockchain\" means  shared or distributed data\nstructures or digital ledgers governed by consensus protocols and maintained\nby peer-to-peer networks that:\n(a) Store digital transactions; and\n(b) Verify and secure transactions cryptographically;\n(9) \"Biomass resources\" has the same meaning as in KRS 152.715;\n(10)(a) \"Capital investment\" means:\n1. Obligations incurred for labor and to contractors, subcontractors,\nbuilders, and  materialmen in connection with the acquisition,\nconstruction, installation, equipping, upgrading, or retrofitting of an\neligible project;\n2. The  cost of acquiring land or rights in land and any cost incident\nthereto, including recording fees;\n3. The cost of contract bonds and of insurance of all kinds that may be\nrequired or necessary during the course of acquisition, construction,\ninstallation, equipping, upgrading, or retrofitting of an eligible project\nwhich is not paid by the contractor or otherwise provided;\n4. All costs of architectural and engineering services, including test\nborings, surveys, estimates, plans, specifications, preliminary\ninvestigations, supervision of construction, and the performance of\nall the duties required by or consequent upon  the acquisition,\nconstruction, installation, equipping, upgrading, or retrofitting of an\neligible project;\n5. All costs required to be paid under the terms of any contract for the\nacquisition, construction, installation, equipping, upgrading, or\nretrofitting of an eligible project; and\n6. All other costs of a nature comparable to those described in this\nsubsection.\n(b) \"Capital investment\" does not include costs described in paragraph (a) of\nthis subsection that are paid for with funds received from the federal\ngovernment or that are reimbursed by the federal government;\n(11) \"Carbon capture ready\" means  planning for or anticipating capture of carbon\ndioxide in a manner to facilitate continued operation of the facility in compliance\nwith applicable federal requirements;\n(12) \"Carbon dioxide transmission pipeline\" means the in-state portion of a pipeline,\nincluding appurtenant facilities, property rights, and easements, that is used\nexclusively for the purpose of transporting carbon dioxide to a point of sale,\nstorage, or other carbon management  applications;\n(13) \"Center for Applied Energy Research\" means  the University of Kentucky\nCenter for Applied Energy Research;\n(14) \"Commercial  mining of cryptocurrency\" means  the process through which\nblockchain technology is used to mine cryptocurrency at a cryptocurrency\nfacility, and includes the process through which blockchain transactions are\nverified and accepted by adding the transactions to a blockchain ledger, which\ninvolves solving complex mathematical cryptographic problems associated with\na block containing transaction data;\n(15) \"Commonwealth\"  means the Commonwealth  of Kentucky;\n(16) \"Construction period\" means  the period beginning with the activation date of\nthe eligible project and ending on a date set forth in the tax incentive\nagreement, which shall be no later than five (5) years from the activation date;\n(17) \"Consensus  protocol\" means  a set of rules and procedures that control how\nand  when  blockchain transactions are verified, validated, recorded, and\nrecognized;\n(18) \"Cryptocurrency\" means  a type of virtual currency that utilizes blockchain\ntechnology and that:\n(a) Can  be digitally traded between users; or\n(b) Can  be converted or exchanged for legal tender;\n(19) \"Cryptocurrency facility\" means a facility located in the Commonwealth  that is\nutilized in the commercial mining of cryptocurrency or in hosting persons\nengaged  in the commercial mining of cryptocurrency through utilization of the\nfacility's infrastructure, including servers and network hardware powered by\nInternet bandwidth, electricity, and other services generally required for such\nmining operations;\n(20) \"Department\" means the Department of Revenue;\n(21) \"Eligible project\" means:\n(a) An alternative fuel facility or a gasification facility meeting the investment\nrequirements of KRS 154.27-020;\n(b) An  energy-efficient alternative fuel facility meeting the investment\nrequirements of KRS 154.27-020;\n(c) A renewable energy facility meeting the investment requirements of KRS\n154.27-020;\n(d) A  carbon  dioxide transmission pipeline meeting  the  investment\nrequirements of KRS 154.27-020; or\n(e) A  cryptocurrency facility meeting the investment requirements of KRS\n154.27-20;\n(22) \"Energy-efficient alternative fuel facility\" means  a facility located in Kentucky\nthat is newly constructed on or after August 30, 2010, or an existing facility\nlocated in Kentucky that is retrofitted or upgraded on or after August 30, 2010,\nand that, after the new construction, retrofit, or upgrade, will produce for sale\nenergy-efficient alternative fuels. For a retrofit of an existing facility, the new\nmodification or addition within the facility shall produce for sale energy-efficient\nalternative fuels;\n(23) \"Energy-efficient alternative fuels\" means homogeneous  fuels that:\n(a) Are produced from processes designed to densify feedstock coal, waste\ncoal, or biomass resources; and\n(b) Have  an energy content that is greater than the feedstock coal, waste\ncoal, or biomass resource;\n(24) \"Estimated labor component\" means  the projected percentage of the total\ncapital investment attributable to labor;\n(25)(a) \"Facility\" means  a single location within the Commonwealth  at which\nmachinery and equipment are used:\n1. In a manufacturing process that transforms raw materials into a\nproduct with commercial value; or\n2. In the commercial mining of cryptocurrency or in hosting persons\nengaged in the commercial mining of cryptocurrency.\n(b) The  facility shall include the physical plant structure where  the\nmanufacturing process occurs or where  the commercial mining of\ncryptocurrency occurs and machinery and equipment within the physical\nplant structure.\n(c) The facility may include:\n1. On-site machinery and equipment used exclusively for processing\ncoal or other raw materials for use in the manufacturing process at\nthe facility;\n2. For an alternative fuel facility or gasification facility, on-site power\nstation operations, if those operations are primarily used to produce\nelectricity for the facility;\n3. On-site refining operations, if those operations are used exclusively\nto refine and blend fuels produced by the facility; and\n4. The  in-state portion of a pipeline, including appurtenant facilities,\nproperty rights, and easements, if the exclusive purpose of the\npipeline is to transport carbon dioxide from the facility to a point of\nsale, storage, or other carbon management  applications.\n(d) \"Facility\" shall not include any  mining operations, or drilling and\nproduction operations for natural gas, unless such coal, natural resource,\nor natural gas operations are being used for purposes of, or are hosting,\nthe commercial mining of cryptocurrency, in which case such operations\nshall be a facility;\n(26) \"Gasification process\" means  a process that converts any carbon-containing\nmaterial into a synthesis gas composed  primarily of carbon monoxide and\nhydrogen;\n(27)(a) \"Gasification facility\" means  a facility located in Kentucky that is newly\nconstructed on or after August 30, 2007, or an existing facility located in\nKentucky that is retrofitted or upgraded on or after August 30, 2007, and\nthat, after the new construction, retrofit, or upgrade, primarily produces for\nsale:\n1. Alternative transportation fuels;\n2. Synthetic natural gas;\n3. Chemicals;\n4. Chemical feedstocks; or\n5. Liquid fuels;\nfrom coal, waste coal, coal-processing waste, or biomass resources,\nthrough a gasification process. For a retrofit of an existing facility, the new\nmodification or addition within the facility shall primarily produce one (1) or\nmore of the products set forth in this paragraph.\n(b) The  gasification facility may  produce electricity as a by-product if the\nprimary purpose for which the facility is constructed, retrofitted, or\nupgraded, and the primary function of the facility remains the production\nand  sale of alternative transportation fuels, synthetic natural gas,\nchemicals, chemical feedstocks, or liquid fuels;\n(28) \"Kentucky gross profits\" has the same meaning as in KRS 141.0401;\n(29) \"Kentucky gross receipts\" has the same meaning as in KRS 141.0401;\n(30) \"Post-construction incentives\" means  the incentives available under KRS\n154.27-060 and 154.27-080;\n(31) \"Renewable energy facility\" means a facility located in Kentucky that is newly\nconstructed on or after August 30, 2007, or an existing facility located in\nKentucky that is retrofitted or upgraded after August 30, 2007, and that, after\nthe new construction, retrofit, or upgrade, utilizes:\n(a) Wind  power, biomass resources, landfill methane gas, hydropower, or\nother similar renewable resources to generate electricity in excess of one\n(1) megawatt for sale to unrelated entities; or\n(b) Solar power to generate electricity in excess of fifty (50) kilowatts for sale\nto unrelated entities.\nFor a retrofit of an existing facility, the modification or addition shall primarily\nresult in the production of electricity as described in paragraph (a) or (b) of this\nsubsection;\n(32) \"Resident\" has the same meaning as in KRS 141.010;\n(33)(a) \"Retrofit\" means  a modification or addition to an existing facility that\nresults in the production of a new and different product or services or\nuses a new or different process to produce the same product or services\nat the facility.\n(b) Modifications or additions to a facility that maintain, restore, mend, or\nrepair a facility shall not be considered a retrofit of the facility, and shall\nnot be considered part of the capital investment if undertaken at the same\ntime as a retrofit;\n(34) \"Synthetic natural gas\" has the same meaning as in KRS 152.715;\n(35) \"Tax incentive agreement\" means  an agreement entered into in accordance\nwith KRS 154.27-040;\n(36) \"Termination date\" means  a date established by the tax incentive agreement\nthat is no more than twenty-five (25) years from the activation date; and\n(37) \"Upgrade\" means  an investment in an existing facility that results in an\nincrease in the productivity of the facility. Increased productivity shall be\nmeasured  in relation to the type of products or services that are required to be\nproduced or performed by that facility to be an eligible project.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=51754","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:55Z","sha256":"7f25676aa0fbafe81ac52d21a0ea89c9b7dfa398fbce115ed7b7fae252eb89b0","source_id":"us-ky","stale":false,"prev":"us-ky/krs-154.260","next":"us-ky/krs-154.27-020"},"notice":"GroundRules: Original legal text. Not legal advice."}