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| Biofuels and Renewable Energy Incentives in Kentucky |
Kentucky Governor Ernie Fletcher signed wide-ranging energy legislation that creates a variety of incentives for biofuels and renewable energy. House Bill 1 creates incentives of up to half the capital investment in a project that creates alternative fuel from biomass or that creates electricity from renewable energy sources. To qualify, a biofuel facility must involve a capital investment of at least $25 million and a renewable power facility must involve a capital investment of at least $1 million. If the renewable power facility uses solar energy, it must be at least 50 kilowatts in size, but other renewable power facilities must be at least 1 megawatt in size.
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What do these Incentives Include?
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The incentives can include an advanced disbursement of the labor costs on a new project; a reimbursement of up to 100% of the sales and use taxes on property bought during construction; and a tax credit of up to 100% of the income tax and limited liability entity tax owed by the company.
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Under certain conditions, companies can also assess 4% of employee gross wages, which the employees can then take as a credit against their income tax.
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The bill's incentives will be funded with the proceeds from $100 million in bonds.
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What does that Mean for Your Business? |
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Expected growth in green energy business in Northwest Kentucky
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Large, diverse and EXPERIENCED labor force
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Progressive leader in green energy policy and practice
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