Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO:
KRS
139.517,
139.720,
154.27-010,
154.27-070
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
131.130(1) authorizes the
Department of Revenue to promulgate administrative regulations necessary for
the administration and enforcement of all tax laws in Kentucky.
KRS
139.710 authorizes the department to
administer the provisions of KRS Chapter 139, relating to the assessment,
collection, refund, and administration of taxes.
KRS
139.517 establishes the sales tax incentive
for alternative fuel, gasification and renewable energy facilities. This
administrative regulation establishes requirements for a sales and use tax
refund relating to the construction, retrofit, or upgrade of an alternative
fuel, gasification, or renewable energy facility.
Section 1. Definitions.
(1) "Activation date" is defined in
KRS
154.27-010(1).
(2) "Alternative fuel facility" is defined by
KRS
154.27-010(3).
(3) "Approved company" is defined in
KRS
154.27-010(5).
(4) "Authority" is defined in
KRS
154.27-010(6).
(5) "Construction period" is defined in
KRS
154.27-010(14).
(6) "Eligible project" is defined in
KRS
154.27-010(16).
(7) "Facility" is defined in
KRS
154.27-010(20).
(8) "Gasification facility" is defined in
KRS
154.27-010(22).
(9) "Renewable energy facility" is defined in
KRS
154.27-010(26).
(10) "Retrofit" is defined in
KRS
154.27-010(28).
(11) "Upgrade" is defined in
KRS
154.27-010(32).
Section 2. Refund Application Requirements.
(1) The approved company shall file requests
for refunds with the Department of Revenue annually within the sixty (60) day
deadlines provided for in
KRS
139.517(4) and according to
the activation date requirements of
KRS
154.27-070.
(2) Refund requests shall be postmarked,
electronically submitted, or if delivered by messenger, hand-stamped by the
department by the date required to qualify for consideration and shall include
the following:
(a) Application for Kentucky
Alternative Fuel, Gasification, and Renewable Energy Facility Sales and Use Tax
Refund, Form 51A301;
(b)
Information Sharing and Assignment Agreement for Designated Refund Claims, Form
51A290. This agreement shall be completed and signed by the approved company,
the subcontractor or contractor (purchaser), and the vendor as
applicable;
(c) Expenditure Report
for Alternative Fuel, Gasification, and Renewable Energy Facility Refunds, Form
51A302, from each purchaser detailing all tangible personal property used in
the construction, retrofitting, or upgrading of an eligible project and the
total corresponding Kentucky sales and use tax paid; and
(d) Sample invoices between each purchaser
and vendor.
(3) Failure
to file the request for a refund within the sixty (60) day deadlines shall
result in the forfeiture of the refund for that year and the amount forfeited
shall not be subject to a refund request for any subsequent years.
Section 3. Record-keeping
Requirements. The approved company shall keep adequate and complete records
supporting its refund request for periods not less than four (4) years as
provided for in
KRS
139.720. The department may audit the records
of all parties involved as necessary to verify the refund request and to ensure
compliance with
KRS
139.517.
Section 4. Forms. The forms listed herein may
be inspected, copied, or obtained, subject to applicable copyright law, at:
(1) The Kentucky Department of Revenue, 501
High Street, Frankfort, Kentucky 40620;
(2) A Kentucky Taxpayer Service Center,
Monday through Friday, 8 a.m. to 4:30 p.m.; or
(3) The department Web site at
http://revenue.ky.gov.
STATUTORY AUTHORITY:
KRS
131.130(1),
139.517(4)(d),
139.710
