Kentucky Statutes 154.27-060 – Severance tax incentives
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(1) (a) Notwithstanding any other provision of KRS § 134.580 or KRS Chapter 143, an approved company that purchases or severs coal that:
1. Is subject to the tax imposed under KRS § 143.020; and
2. Is used by the approved company exclusively as feedstock for an alternative fuel facility, energy-efficient alternative fuel facility, or a gasification facility;
may be eligible for an incentive in an amount up to eighty percent (80%) of the taxes paid pursuant to KRS § 143.020 on coal purchased or severed by the approved company that is above the base amount.
(b) Notwithstanding any other provision of KRS § 134.580 or KRS Chapter 143A, an approved company that purchases or severs natural gas or natural gas liquids on or after August 1, 2010, that:
1. Is subject to the tax imposed under KRS § 143A.020; and
2. Is used by the approved company exclusively as feedstock for an alternative fuel facility described in KRS § 154.27-020(4)(d);
may be eligible for an incentive in an amount up to eighty percent (80%) of the taxes paid pursuant to KRS § 143A.020 on natural gas or natural gas liquids purchased or severed by the approved company that is above the base amount.
(2) An approved company that has purchased or severed coal subject to the tax imposed under KRS § 143.020 or purchased or severed natural gas or natural gas liquids subject to the tax imposed under KRS § 143A.020 prior to the execution of a tax incentive agreement shall not create an affiliate, subsidiary, corporation, or other related entity that would result in a base amount of zero (0).
(3) The incentive may be requested beginning in the first calendar year after the construction of a new facility or the upgrade or retrofit of an existing facility is completed.
(4) Upon completion of the construction of a new alternative fuel facility, energy- efficient alternative fuel facility, or gasification facility or the retrofit or upgrade of an existing facility, an approved company shall notify the authority and the department.
(5) The approved company may obtain the incentive on an annual basis by filing a request for the incentive with the department as provided in KRS § 143.024.
(6) The department shall notify the authority of the incentives requested and the incentives distributed, upon request of the authority.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 60, sec. 3, effective July 15, 2010; and ch. 139, sec. 4, effective July 15, 2010. — Created 2007 (2d Extra. Sess.) Ky. Acts ch. 1, sec.
6, effective August 30, 2007.
Legislative Research Commission Note (7/15/2010). This section was amended by
2010 Ky. Acts chs. 60 and 139, which do not appear to be in conflict and have been codified together.
1. Is subject to the tax imposed under KRS § 143.020; and
Terms Used In Kentucky Statutes 154.27-060
- Alternative fuel facility: means a facility located in Kentucky that is newly constructed on or after August 30, 2007, or an existing facility located in Kentucky that is retrofitted or upgraded on or after August 30, 2007, and that, after the new construction, retrofit, or upgrade, primarily produces for sale alternative transportation fuels. See Kentucky Statutes 154.27-010
- Approved company: means a corporation, limited liability company, partnership, registered limited liability partnership, sole proprietorship, business trust, or any other entity approved for incentives for an eligible project. See Kentucky Statutes 154.27-010
- Authority: means the Kentucky Economic Development Finance Authority established by KRS §. See Kentucky Statutes 154.27-010
- Base amount: means the tons of coal, thousand (1000) cubic foot units (Mcf) of natural gas, or gallons of natural gas liquids purchased and used or severed and used by the approved company as feedstock for an eligible project during the twelve (12) months prior to the month in which the approved company first begins receiving incentives under KRS §. See Kentucky Statutes 154.27-010
- Company: may extend and be applied to any corporation, company, person, partnership, joint stock company, or association. See Kentucky Statutes 446.010
- Department: means the Department of Revenue. See Kentucky Statutes 154.27-010
- Facility: means a single location within the Commonwealth at which machinery and equipment are used:
1. See Kentucky Statutes 154.27-010 - Gasification facility: means a facility located in Kentucky that is newly constructed on or after August 30, 2007, or an existing facility located in Kentucky that is retrofitted or upgraded on or after August 30, 2007, and that, after the new construction, retrofit, or upgrade, primarily produces for sale:
1. See Kentucky Statutes 154.27-010 - Retrofit: means a modification or addition to an existing facility that results in the production of a new and different product or services or uses a new or different process to produce the same product or services at the facility. See Kentucky Statutes 154.27-010
- Tax incentive agreement: means an agreement entered into in accordance with KRS §. See Kentucky Statutes 154.27-010
- Upgrade: means an investment in an existing facility that results in an increase in the productivity of the facility. See Kentucky Statutes 154.27-010
- Year: means calendar year. See Kentucky Statutes 446.010
2. Is used by the approved company exclusively as feedstock for an alternative fuel facility, energy-efficient alternative fuel facility, or a gasification facility;
may be eligible for an incentive in an amount up to eighty percent (80%) of the taxes paid pursuant to KRS § 143.020 on coal purchased or severed by the approved company that is above the base amount.
(b) Notwithstanding any other provision of KRS § 134.580 or KRS Chapter 143A, an approved company that purchases or severs natural gas or natural gas liquids on or after August 1, 2010, that:
1. Is subject to the tax imposed under KRS § 143A.020; and
2. Is used by the approved company exclusively as feedstock for an alternative fuel facility described in KRS § 154.27-020(4)(d);
may be eligible for an incentive in an amount up to eighty percent (80%) of the taxes paid pursuant to KRS § 143A.020 on natural gas or natural gas liquids purchased or severed by the approved company that is above the base amount.
(2) An approved company that has purchased or severed coal subject to the tax imposed under KRS § 143.020 or purchased or severed natural gas or natural gas liquids subject to the tax imposed under KRS § 143A.020 prior to the execution of a tax incentive agreement shall not create an affiliate, subsidiary, corporation, or other related entity that would result in a base amount of zero (0).
(3) The incentive may be requested beginning in the first calendar year after the construction of a new facility or the upgrade or retrofit of an existing facility is completed.
(4) Upon completion of the construction of a new alternative fuel facility, energy- efficient alternative fuel facility, or gasification facility or the retrofit or upgrade of an existing facility, an approved company shall notify the authority and the department.
(5) The approved company may obtain the incentive on an annual basis by filing a request for the incentive with the department as provided in KRS § 143.024.
(6) The department shall notify the authority of the incentives requested and the incentives distributed, upon request of the authority.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 60, sec. 3, effective July 15, 2010; and ch. 139, sec. 4, effective July 15, 2010. — Created 2007 (2d Extra. Sess.) Ky. Acts ch. 1, sec.
6, effective August 30, 2007.
Legislative Research Commission Note (7/15/2010). This section was amended by
2010 Ky. Acts chs. 60 and 139, which do not appear to be in conflict and have been codified together.