Tax News

CCH (cch.taxgroup.com) reports:

Kentucky Governor Ernie Fletcher has signed special session legislation (H.B. 1, Laws 2007) that creates and expands various alternative energy and fuel tax credits. Kentucky-based alternative fuel, gasification, or renewable energy facilities may claim credits against the corporation income tax, the limited liability entity tax, the personal income tax, the sales and use tax, and the severance tax. Companies that produce ethanol and cellulosic ethanol in Kentucky may claim credits against the corporation income tax, the limited liability entity tax, and the personal income tax. The legislation also increases the cap for the corporation income tax, limited liability entity tax, and personal income tax credit for biodiesel producers and blenders and extends the credit eligibility to renewable diesel producers; expands the corporation income tax, personal income tax, and public service corporation property tax credit for coal-fired electric generation plants to alternative fuel and gasification facilities; and provides a sales tax refund for manufacturers that invest in energy efficient machinery or equipment.