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KRS 141.428​

  • The credit is allowed for coal purchased to be used by electric power company certified as clean coal facility by the Energy and Environment Cabinet.
  • To be certified as a "clean coal facility", the facility must begin commercial operation in Kentucky on or after January 1, 2005 at a cost greater than $150,000,000 and be certified by the Energy and Environment Cabinet.
  • The credit is nonrefundable and nontransferable.
  • The allowable credit shall be equal to two dollars ($2) per ton of eligible coal purchased unless same coal has generated a coal incentive tax credit as provided by KRS 141.0405.  In that case, no additional credit is allowed.
  • The credit is applied against the individual income tax imposed by KRS 141.020​, the corporation income tax imposed by KRS 141.040, the limited liability entity tax (LLET) imposed by KRS 141.0401 and the public service corporation property tax (state portion only) imposed by KRS 136.120​. The amount of credit claimed against the corporation income tax and the LLET can be different.
  • For pass-through entities not subject to tax under KRS 141.040​, the amount of approved credit shall be applied against the LLET at the entity level, and shall also be distributed to each partner, member, shareholder, or beneficiary based on the partner's, member's, shareholder's, or beneficiary's distributive share of the income of the pass-through entity.
    • Each taxpayer is required to notify the Department of Revenue (DOR) electronically of all partners, members, shareholders, or beneficiaries of the pass through entity.
  • Effective for tax years ending on or after December 31, 2006.
  • A taxpayer that is eligible for credit shall file a clean coal incentive credit claim with the DOR. The taxpayer must submit an electronic report verifying the tons of coal subject to the coal severance tax purchased in the year for which the credit is being requested.
  • Approved by the Office of Property Valuation; Division of Minerals Taxation and GIS Services.
  • DOR shall determine the amount of approved credit and issue a credit certificate to taxpayer.
  • Taxpayer must maintain records for 5 years.

Use Form: Schedule CCI

The Kentucky Department of Revenue conducts work
under the authority of the Finance and Administration Cabinet.