RELATES TO: KRS 139.010, 139.518, 139.720
STATUTORY AUTHORITY: KRS 131.130(1), 139.710
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 139.518 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(16).
(3) "Plant facility" is defined by KRS 139.010(21).
Section 2. Efficiency Requirements. To calculate the fifteen (15) percent reduction of energy or energy-producing fuels, the decrease in energy consumption shall be based on the total energy consumed within all combined manufacturing at one (1) plant facility.
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 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 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. (35 Ky.R. 452; 777; eff. 10-31-2008; 44 Ky.R.778, 1212; eff. 1-5-2018.)