Alternative Fuel Manufacturing Tax Incentives

Companies that engage in energy-efficient alternative fuel production may be eligible for an incentive through Kentucky Enterprise Initiative Act (KEIA). The Kentucky Cabinet for Economic Development (Cabinet) provides a refund of Kentucky sales and use tax paid by approved companies for building and construction materials for the acquisition, construction, or expansion of a new or existing facility or eligible equipment used in research and development. Energy-efficient alternative fuels are defined as homogeneous fuels that are produced from processes designed to densify feedstocks such as coal, waste coal, or biomass resources and have an energy content that is greater than the feedstock. For more information, including qualifications and the application process, see the Cabinet Business Incentives website.

(Reference Kentucky Revised Statutes 154.31)