Alternative Fuel Production Tax Incentives

Companies that engage in alternative fuel production and hydrogen transmission pipelines may be eligible for the Kentucky Business Investment (KBI) Program. The Kentucky Cabinet for Economic Development (Cabinet) provides income tax credits and wage assessment incentives to eligible companies that locate or expand operations in Kentucky. 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. The incentive offsets eligible expenses for up to 15 years for an economic development project located in an enhanced incentive county or 10 years for an economic development project located in another county. An approved company may be eligible for a credit of up to 100% of the Kentucky corporate income or limited liability entity tax liability and wage assessment fees are available. For more information, including qualifications and the application process, see the Cabinet Business Incentives website.

(Reference Kentucky Revised Statutes 154.32-020)

Point of Contact
Sarah Butler
Director, Incentive Administration Division
Kentucky Cabinet for Economic Development
Phone: (502) 782-1978

Jurisdiction: Kentucky

Type: State Incentives

Enacted: Apr 26, 2018

Technologies: Biodiesel, Ethanol, Hydrogen Fuel Cells

See all Kentucky Laws and Incentives.