{"data":{"id":"us-ky/krs-246.700","jurisdiction":"us-ky","citation":"KRS 246.700","heading":"Renewable Chemical Production Program.","body":"(1) (a) The department shall create and administer the Renewable Chemical\nProduction Program by promulgating administrative regulations under KRS\nChapter 13A and authorizing tax credits for that production.\n(b) The department may consult with the chemical engineer ing departments of\nany university to create and administer the Renewable Chemical Production\nProgram that may best serve this Commonwealth.\n(c) The department shall coordinate with the Department of Revenue related to\nawarding tax credits while remaining w ithin the annual biodiesel, renewable\ndiesel, and renewable chemical production tax credit cap provided in KRS\n141.422.\n(2) To be eligible for receiving the renewable chemical production tax credit under\nKRS 141.4231, a business shall:\n(a) Be physically located in this state;\n(b) Operate for profit;\n(c) Organize, expand, or locate in this state on or after July 1, 2020;\n(d) 1. Create new jobs and retain those jobs for at least four (4) years; or\n2. Invest a substantial amount of new capital in the Commonwea lth and\nmaintain that capital for at least four (4) years;\n(e) Certify to the department:\n1. That the business:\na. Has not applied for and will not receive economic development\nincentives under KRS Chapter 154 for the jobs created or capital\ninvestment made under the Renewable Chemical Production\nProgram; and\nb. Is in compliance with all agreements entered into under t he\nRenewable Chemical Production Program or other programs\nadministered by the department; and\n2. The date that the business first qualified as an eligible business;\n(f) Not provide professional services, health care services, or medical treatments,\nor engage in retail operations; and\n(g) Not relocate operations from another area of the state or reduce operations in\nanother area of the state while seeking this incentive. To determine whether a\nproject meets the requirement under this paragraph, the department shall:\n1. Consider a project that does not create new jobs or invest a substantial\namount of new capital a relocation or reduction in operations; and\n2. Require sufficient data from the business related to jobs created and the\namount of substantial capi tal investment before the business applies for\nthis incentive and for four (4) years following the approval of this\nincentive to ensure that new jobs or substantial capital investment have\noccurred and remain productive in this state;\n(3) (a) Before being approved for the tax credit permitted by KRS 141.4231, an\neligible business shall enter into an agreement with the department for the\nsuccessful completion of all requirements of the program.\n(b) As part of the agreement, the eligible business shall agree to:\n1. Collect and provide all information required by the department, allowing\nthe department and the Department of Revenue to maintain the annual\ntax credit cap and to fulfill each of the reporting and compliance\nobligations under this section and KRS 141.4231; and\n2. Agree to allow information about the production of renewable chemicals\nand the related tax credit to be shared with the Interim Joint Committee\non Appropriations and Revenue.\n(c) The business shall not receive a tax credit for renewable chem icals produced\nbefore the date the business first qualified as an eligible business.\n(4) (a) The department may impose a nonrefundable compliance cost fee of five\nhundred dollars ($500), collected by the department at the time a business\napplies for participation in the program.\n(b) An eligible business shall fulfill all the requirements of the program and the\nagreement before receiving a tax credit or entering into a subsequent\nagreement under this section.\n(c) The department may decline to enter into a su bsequent agreement under this\nsection or award a tax credit if an agreement is not successfully fulfilled.\n(5) (a) After the production of renewable chemicals by an eligible business, the\nbusiness shall apply, in the manner prescribed by the department, fo r the\nrenewable chemicals production tax credit. The application shall include the\nfollowing information:\n1. A description of the renewable chemicals produced in this state;\n2. The amount or volume of renewable chemicals produced;\n3. The costs associated with the production of the renewable chemicals;\n4. The amount of gross receipts generated by the sale of the renewable\nchemicals; and\n5. Any other information required by the department in order to establish\nand verify eligibility under the program.\n(b) The department may accept applications on a continuous basis or may\nestablish, by administrative regulation, an annual application deadline.\n(6) Upon establishing that all requirements of the program and the agreement have been\nfulfilled, the department shall  certify the amount of preliminary tax credit for the\napplicant to the Department of Revenue.\n(7) (a) The department shall work with the Department of Revenue to provide all\ninformation necessary to ensure compliance with KRS Chapter 141 by the\nsuccessful tax credit applicant.\n(b) On or before December 31, 2020, and on or before each December 31\nthereafter, the department shall submit to the Department of Revenue all\ninformation received from each eligible business related to the renewable\nchemical production tax credit.\n(c) When the Department of Revenue receives the information provided under\nparagraph (b) of this subsection, the Department of Revenue shall consider the\nrenewable chemical production tax credit applications together with the total\namount of approved credit fo r all biodiesel producers, biodiesel blenders, and\nrenewable diesel producers required in KRS 141.423.\n(8) The Renewable Chemical Production Program shall sunset on December 31, 2024.\n(9) (a) Failure to fulfill any requirement of the program or any of the terms and\nobligations of an agreement entered into under this section by an eligible\nbusiness shall:\n1. Result in the rescission of the tax credit permitted by KRS 141.4231 by\nthe department; and\n2. Subject the eligible business to the repayment of all tax credits claimed.\n(b) Upon the rescission of any tax credit, the department shall report to the\nDepartment of Revenue, within thirty (30) days, all information necessary by\nthe Department of Revenue to ensure compliance with KRS Chapter 141.","path":["KRS Chapter 246"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=49928","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:52:56Z","sha256":"52146f98dcd31a4793499d6de67f774d29e0ba1cc8389848b024aa1068694d17","source_id":"us-ky","stale":false,"prev":"us-ky/krs-246.660","next":"us-ky/krs-246.990"},"notice":"GroundRules: Original legal text. Not legal advice."}