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Kentucky

Kentucky

Incentives/Policies for Renewables & Efficiency

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Renewable Energy Tax Credit (Corporate)   

Last DSIRE Review: 07/16/2013
Program Overview:
State: Kentucky
Incentive Type: Corporate Tax Credit
Eligible Renewable/Other Technologies: Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Geothermal Heat Pumps, Combination Active Solar Space-Heating and Water Heating System
Applicable Sectors: Commercial, Industrial, Agricultural
Amount:PV: $3/W DC
All other systems: 30% of eligible costs
Maximum Incentive:$1,000 per taxpayer for installations on multi-family residential rental units or commercial property; $500 for single family residential rental unit
Equipment Requirements:Solar water heaters must use OG-100 SRCC certified collectors with minimum 5-year warranty.
PV systems must meet the requirements of Article 690 of the National Electrical Code, and use solar photovoltaic panels and inverters that are rated and listed by Underwriters Laboratories.
Closed loop geothermal heat pumps must have EER of 14.1 and COP of 3.6
Open loop geothermal heat pump must have EER of 16.2 and COP of 3.5
DX geothermal heat pump must have EER of 15 and COP of 3.5
Wind turbines must meet AWEA's wind industry consensus standards.
Installation Requirements:Solar hot water, active solar space heating, and PV systems must be installed by a NABCEP-certified installer.
Carryover Provisions:Excess credit may be carried forward for one year
Start Date:1/1/2009
Expiration Date:12/31/2015
Authority 1:
Date Effective:
Expiration Date:
KRS ยง 141.435 et seq.
1/1/2009
12/31/2015
Summary:

In April 2008, Kentucky enacted legislation establishing a 30% state income tax credit for certain solar, wind and geothermal installations on single or multi-family residences and on commercial property. Kentucky corporate taxpayers may take the 30% credit on any of the following equipment installed on commercial property:

  • Active or passive solar space-heating systems
  • Combined active solar space-heating and water-heating systems
  • Solar hot water systems
  • Wind turbines

In addition, Kentucky corporate taxpayers may take a credit equal to $3 per watt (DC) of rated capacity for the installation of a photovoltaic (PV) system. Solar and wind technologies have a maximum tax credit of $500 if installed on a single family residential rental unit, and $1,000 for multi-family residential rental units or commercial property.

Kentucky corporate taxpayers may also take a 30% tax credit, up to $250, for closed-loop geothermal heat pumps, open-loop geothermal heat pumps, direct expansion (DX) geothermal heat pumps installed on single or multi-family rental residential properties which they own. This is not applicable to any other commercial property.

To be eligible, wind and solar hot water equipment must have a manufacturer’s warranty of five years or more. Solar hot water systems must also have an installer's warranty of two years or more, and must use collectors certified by the Solar Rating and Certification Corporation (SRCC) under OG-100. Solar energy systems must be installed by a North American Board of Certified Energy Practitioners (NABCEP)-certified installer. PV panels and inverters must meet article 690 of the National Electrical Code (NEC) and be certified by Underwriters Laboratories (UL).

Wind turbines must meet the wind industry consensus standards developed by the American Wind Energy Association (AWEA) and U.S. Department of Energy. Wind turbines must also meet the requirements of article 705 of the NEC, and must be UL-certified. Geothermal systems must meet certain guidelines for their Energy Efficiency Ratio (EER) and Coefficient of Performance (COP).

The credit may be carried forward for one year. It is effective for taxable years 2009-2015. To claim the tax credit, use Form 5695-K - Kentucky Energy Efficiency Products Tax Credit - Form 41A720-S7 available on the Kentucky Department of Revenue web site.


 
Contact:
  Taxpayer Services
Kentucky Department of Revenue
501 High Street
Frankfort, KY 40620
Phone: (502) 564-4581
Fax: (502) 564-3875
Web Site: http://revenue.ky.gov/
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.