ETHANOL TAX CREDIT- KRS 141.422, 141.4242, 141.4246, 141.4248 & 141.425 – 103 KAR 15:110
- The tax credit is one dollar ($1) per ethanol gallon produced.
- Tax credit cap:
- Calendar years beginning after December 31, 2007: $5,000,000
- If the total approved credits exceed the tax credit cap, the credit must be prorated amongst the approved taxpayers. Proration is calculated as follows:
|Tax Credit Cap||X||T/P's Approved Credit|
|||||All T/Ps' Approved Credits|
- There is no carry forward provision.
- The ethanol must be manufactured in Kentucky.
- Must meet the current American Society for Testing and Materials specification D4806
- The credit is a nonrefundable credit against taxes imposed by KRS 141.020, KRS 141.040, and/or KRS 141.0401.
- Must file the application by January 15 following the close of the preceding tax year.
- The DOR must notify taxpayers of the amount of their approved credit by April 15th following the close of the preceding calendar year.
Unused Ethanol and/or Cellulosic Ethanol Credit
- Any unused tax credit cap balance may be transferred to the other credit to be used for that year. For example, if only $3,000,000 of the $5,000,000 Ethanol Credit cap is approved, the remaining $2,000,000 balance can be transferred to the Cellulosic Ethanol tax credit cap.
Use form: Schedule ETH