139.518 Sales or use tax refund on energy-efficiency products used at manufacturing plant.
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<![CDATA[ Page 1 of 2 139.518 Sales or use tax refund on energy-efficiency products used at manufacturing plant. (1) "Energy efficiency project" means a project undertaken by a person engaged in manufacturing whereby the person purchases new or replacement machinery or <br>equipment that reduces the consumption of energy or energy-producing fuels in the <br>manufacturing process at a plant facility in this state by at least fifteen percent <br>(15%) measured in megawatts, gallons, or other measurable units of energy, while <br>maintaining or increasing the number of units of production for that same period. <br>For purposes of this section, "machinery or equipment" does not include: <br>(a) Windows, lighting, or other improvements to buildings; or <br>(b) Repair, replacement, and spare parts as defined in KRS 139.010. (2) (a) The consumption reduction and the production rate shall be calculated by comparing the consumption and production rates during a twelve (12) month <br>period immediately after the new or replacement machinery or equipment is <br>placed in service with the consumption and production rates for the twelve <br>(12) month period submitted with the application for preapproval as required <br>in subsection (4) of this section. (b) If the manufacturer believes that the method described in paragraph (a) of this subsection does not accurately reflect the reduction in energy or energy-<br>producing fuels used in the manufacturing process, the manufacturer may <br>submit additional information to the department for consideration. (3) Notwithstanding KRS 134.580(3) and 139.770, a person engaged in manufacturing at a plant facility located in this state may apply for a refund equal to the amount of <br>Kentucky sales or use tax paid on the purchase of new or replacement machinery or <br>equipment for an energy efficiency project purchased on or after July 1, 2008, <br>reduced by the amount of vendor compensation allowed under KRS 139.570. (4) The manufacturer shall file an application for preapproval with the department, on a form provided by the department, prior to purchasing the new or replacement <br>machinery or equipment that includes: <br>(a) A description of the new or replacement machinery or equipment; <br>(b) Documentation of the amount of energy or energy-producing fuels consumed in the twelve (12) month period prior to the application for preapproval; and (c) Any other information the department may request. (5) The department shall acknowledge receipt of the application for preapproval. <br>(6) The manufacturer shall file an application for incentives that includes documentation of: <br>(a) The achievement of the energy-efficiency standards required by subsection (1) of this section within eighteen (18) months from the time the machinery or <br>equipment was placed in service; and (b) Verification that the Kentucky sales and use tax was paid on the purchase of the new or replacement machinery or equipment. Page 2 of 2 (7) The burden of proof that the purchase of the machinery or equipment resulted in a decrease in the consumption of energy or energy-producing fuels shall be upon the <br>applicant. (8) Interest shall not be allowed or paid on any refund made under this section. Effective: August 1, 2008 <br>History: Amended 2008 Ky. Acts ch. 95, sec. 12, effective August 1, 2008. -- Created 2007 (2d Extra. Sess.) Ky. Acts ch. 1, sec. 17, effective August 30, 2007. ]]>