Current through Register Vol. 50, No. 6, December 1, 2023
RELATES TO:
KRS
139.010,
139.518,
139.720
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
131.130(1) requires 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
139.518 establishes the sales and use tax
refund provisions for energy efficiency products used at manufacturing plants.
This administrative regulation establishes requirements for a sales and use tax
refund relating to an energy efficiency project.
Section 1. Definitions.
(1) "Energy efficiency project" is defined by
KRS
139.518(1).
(2) "Manufacturing" is defined by
KRS
139.010(20).
(3) "Plant facility" is defined by
KRS
139.010(28).
Section 2. Efficiency Requirements. To
determine if an energy efficiency project reduces the consumption of energy or
energy-producing fuels in the manufacturing process at a plant facility in this
state by at least fifteen (15) percent, the manufacturer shall:
(1) Determine the total energy or
energy-producing fuels consumed within all combined manufacturing at one (1)
plant facility during the twelve (12) month period immediately after the new or
replacement machinery or equipment is placed in service;
(2) Subtract the total energy or
energy-producing fuels amounts determined in subsection (1) from the total
energy or energy-producing fuels amounts submitted with the application for
preapproval as required in
KRS
139.518(4); and
(3) Divide any reduction in energy or
energy-producing fuels calculated in subsection (2) by the total amount of
energy or energy-producing fuels consumed within all combined manufacturing at
the single plant facility submitted with the application for preapproval as
required in
KRS
139.518(4).
Section 3. Refund Application Requirements.
(1) The applicant shall file a completed
Application for Preapproval for Energy Efficiency Machinery or Equipment, Form
51A300, with the Department of Revenue along with energy and energy producing
fuel consumption and units of production documentation within the timeframe
required under
KRS
139.518(4).
(2) Requests for the sales and use tax
incentive shall be filed within the timeframe required by
KRS
139.518(6)(a). The following
completed documentation demonstrating achievement of the fifteen (15) percent
energy efficiency threshold shall be submitted:
(a) Application for Energy Efficiency
Machinery or Equipment Sales and Use Tax Incentive, Form 51A351;
(b) Information Sharing and Assignment
Agreement for Energy Efficiency Project Incentive, Form 51A350. This agreement
shall be completed and signed by the manufacturer, the vendor, and the
contractor as applicable; and
(c)
Purchase invoices for the machinery and equipment for which a refund is being
requested.
(3) To be
considered valid, all applications and other documents required shall be
postmarked, electronically submitted, or if delivered by messenger,
hand-stamped by the department by the date required.
(4) The applicant 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 part or all
of the records of all parties involved as necessary to verify the refund
request and to ensure compliance with
KRS
139.518.
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 40601;
(2) A Kentucky Taxpayer Service Center,
Monday through Friday, 8:00 a.m. to 4:30 p.m.; or
(3) The department Web site at
http://revenue.ky.gov.
35 Ky.R. 452; 777;
eff. 10-31-2008; 44 Ky.R.778, 1212; eff. 1-5-2018; Crt eff. 1-28-2020; 46 Ky.R.
1599, 2226; eff. 5-5-2020.
STATUTORY AUTHORITY:
KRS
131.130,
139.710