{"data":{"id":"us-ky/krs-154.27-020","jurisdiction":"us-ky","citation":"KRS 154.27-020","heading":"Short title -- Legislative findings -- Purpose  of subchapter --","body":"Incentives.  (Effective July 1, 2021)\n(1) This subchapter shall be known as the \"Incentives for Energy-related Business\nAct.\"\n(2) The General Assembly hereby finds and declares that it is in the best interest\nof the Commonwealth  to induce the location of innovative energy-related\nbusinesses in the Commonwealth  in order to advance the public purposes of\nachieving energy independence, creating new  and advanced technologies,\ncreating new  jobs and new  investment, and creating new  sources of tax\nrevenues  that but for the inducements to be offered by the authority to\napproved companies would not exist.\n(3) The purpose of this subchapter is to assist the Commonwealth  in moving to the\nforefront of national efforts to achieve energy independence by reducing the\nCommonwealth's  reliance on imported energy resources, and to become  a\nnational leader in emerging industries which use substantial amounts  of\nenergy. The provisions of this subchapter seek to accomplish this purpose by\nproviding incentives for companies that, in a carbon capture ready manner,\nconstruct, retrofit, or upgrade facilities for the purpose of:\n(a) Increasing the production and sale of alternative transportation fuels;\n(b) Increasing the production and sale of synthetic natural gas, chemicals,\nchemical feedstocks, or liquid fuels, from coal, biomass resources, or\nwaste coal through a gasification process;\n(c) Increasing the production and sale of energy-efficient alternative fuels;\n(d) Generating electricity for sale through alternative methods such as solar\npower,  wind  power,  biomass  resources, landfill methane  gas,\nhydropower, or other similar renewable resources; or\n(e) Increasing the usage of electricity in areas which have an abundant\nsupply due to the loss of manufacturing businesses across the state.\n(4) To  qualify for the incentives provided in this subchapter, the following\nrequirements shall be met:\n(a) For an alternative fuel facility or gasification facility that uses oil shale, tar\nsands, or coal as the primary feedstock, the minimum capital investment\nshall be one hundred million dollars ($100,000,000);\n(b) For an alternative fuel facility or gasification facility that uses biomass\nresources as the primary feedstock, the minimum capital investment shall\nbe twenty-five million dollars ($25,000,000);\n(c) For  an energy-efficient alternative fuel facility, the minimum  capital\ninvestment shall be twenty-five million dollars ($25,000,000);\n(d) For  an  alternative fuel facility located in Kentucky that is newly\nconstructed on or after August 1, 2010, or an existing facility located in\nKentucky that is retrofitted or upgraded on or after August 1, 2010, and\nthat, after the new construction, retrofit, or upgrade, primarily produces for\nsale alternative transportation fuels using natural gas or natural gas\nliquids as the primary feedstock, the minimum capital investment shall be\none million dollars ($1,000,000); provided that the authority may approve\na  maximum  of five (5) projects that meet  the requirements of this\nparagraph;\n(e) For a renewable energy facility, the minimum capital investment shall be\none million dollars ($1,000,000);\n(f) For  a  carbon dioxide transmission pipeline, the minimum  capital\ninvestment shall be fifty million dollars ($50,000,000); and\n(g) For a cryptocurrency facility, the minimum capital investment shall be one\nmillion dollars ($1,000,000).\n(5) The  incentives under the Incentives for Energy-related Business Act are as\nfollows:\n(a) An  advance disbursement of post-construction incentives for which an\napproved company has been approved, the maximum  amount of which is\nbased upon the estimated labor component of the total capital investment\nof the eligible project, and the utilization of Kentucky residents during the\nconstruction period as set forth in KRS 154.27-090;\n(b) Sales and use tax incentives of up to one hundred percent (100%) of the\ntaxes paid on purchases of tangible personal property made to construct,\nretrofit, or  upgrade  an  eligible project, including commercial\ncryptocurrency mining equipment at a facility, as set forth in KRS  139.517\nand 154.27-070;\n(c) Up  to eighty percent (80%) of the severance taxes paid on the purchase\nor severance of:\n1. Coal that is subject to the tax imposed under KRS  143.020 and that\nis specifically used by an alternative fuel facility, energy-efficient\nalternative fuel facility, or a gasification facility as feedstock for an\neligible project, as set forth in KRS 143.024 and 154.27-060; or\n2. Natural gas or natural gas liquids that are subject to the tax imposed\nunder KRS  143A.020 and that are specifically used in an alternative\nfuel facility described in subsection (4)(d) of this section as\nfeedstock for an eligible project, as set forth in KRS  143A.025 and\n154.27-060;\n(d) Up  to one hundred percent (100%) of the Kentucky income tax imposed\nunder KRS  141.040 or 141.020, and the limited liability entity tax imposed\nunder KRS  141.0401 on the income, Kentucky gross profits, or Kentucky\ngross receipts of the approved company generated by or arising from the\neligible project, as set forth in KRS 141.421 and 154.27-080; and\n(e) Authorization for the approved company to impose a wage assessment of\nup to four percent (4%) of the gross wages of each employee subject to\nthe Kentucky income tax:\n1. Whose  job was created as a result of the eligible project;\n2. Who  is employed by the approved company  to work at the facility;\nand\n3. Who  is on the payroll of the approved company or an affiliate of the\napproved company;\nas set forth in KRS 154.27-080.\n(6) The maximum  recovery from all incentives approved under this subchapter for\nan eligible project shall not exceed fifty percent (50%) of the capital investment\nin the eligible project.\n(7) The incentives available to an approved company shall be negotiated with and\napproved by the authority.\n(8) If a newly constructed facility that qualifies for incentives under this subchapter\nis later upgraded or retrofitted in a manner that would qualify for incentives\nunder this subchapter, the retrofit or upgrade shall be a separate eligible\nproject, and  the minimum  investment requirements and  carbon capture\nreadiness requirements, if required, shall be met for the retrofit or upgrade to\nqualify for incentives under this subchapter.\n(9) The General Assembly finds that the authorities granted by this subchapter are\nproper governmental and public purposes for which public moneys  may  be\nexpended.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=51755","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:55Z","sha256":"780aee659e2605fee7455920877e88da35839a863bc8dce7df3e1a27bd8019c7","source_id":"us-ky","stale":false,"prev":"us-ky/krs-154.27-010","next":"us-ky/krs-154.27-030"},"notice":"GroundRules: Original legal text. Not legal advice."}