141.418 Nonrefundable credit for voluntary environmental remediation.
704 words·~3 min read·
/ky/chapter-141/141-418A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)As used in this section:
(a)"Hazardous substances" shall have the meaning provided in KRS 224.1-400;
(b)"Pollutant or contaminant" shall have the meaning provided in KRS 224.1-
400;
(c)"Petroleum" and "petroleum products" shall have the meaning provided in
KRS 224.60-115;
(d)"Release" shall have the meaning as provided in either or both KRS 224.1-400
and 224.60-115;
(e)"Qualifying voluntary environmental remediation property" means real
property subject to the provisions of KRS 224.1-400, 224.1-405, or 224.60-
135 where the Energy and Environment Cabinet has made a determination
that:
1. All releases of hazardous substances, pollutants, contaminants,
petroleum, or petroleum products on the property occurred prior to the
property owner's acquisition of the property;
2. The property owner made all appropriate inquiry into previous
ownership and uses of the property in accordance with generally
accepted practices;
3. The property owner or a responsible party has provided all legally
required notices with respect to hazardous substances, pollutants,
contaminants, petroleum, or petroleum products found at the property;
4. The property owner is in compliance with all land use restrictions and
does not impede the effectiveness or integrity of any institutional
control;
5. The property owner complied with any information request or
administrative subpoena under KRS Chapter 224; and
6. The property owner is not affiliated with any person who is potentially
liable for the release of hazardous substances, pollutants, contaminants,
petroleum, or petroleum products on the property pursuant to KRS
224.1-400, 224.1-405, or 224.60-135, through:
a. Direct or indirect familial relationship;
b. Any contractual, corporate, or financial relationship, excluding
relationships created by instruments conveying or financing title or
by contracts for sale of goods or services; or
c. Reorganization of a business entity that was potentially liable;
(f)"Expenditures" means payment for work to characterize the extent of
contamination and to remediate the contamination at a qualifying voluntary
environmental remediation property; and
(g)"Taxpayer" means an individual subject to tax under KRS 141.020 or a
corporation subject to tax under KRS 141.040.
(a)There shall be allowed a nonrefundable credit against the tax imposed under
KRS 141.020 or 141.040 for taxable years beginning after December 31,
2004, and against the tax imposed by KRS 141.0401 for taxable years
beginning after December 31, 2006, for taxpayer expenditures made at a
qualifying voluntary environmental remediation property in order to correct
the effect of a release of hazardous substances, pollutants, contaminants,
petroleum, or petroleum products on the property pursuant to KRS 224.1-400,
224.1-405, or 224.60-135, consistent with a corrective action plan approved
by the Energy and Environment Cabinet pursuant to KRS 224.1-400, 224.1-
405, or 224.60-135, and provided the cleanup was not financed through a
public grant program or the petroleum storage tank environmental assurance
fund.
(b)The credit allowed under paragraph
(a)of this subsection shall be applied both
to the income tax imposed under KRS 141.020 or 141.040 and to the limited
liability entity tax imposed under KRS 141.0401, with the ordering of the
credits as provided in KRS 141.0205.
(3)The maximum total credit for each taxpayer shall not exceed one hundred fifty
thousand dollars ($150,000). For purposes of this section, an affiliated group of
taxpayers required to file a consolidated return under KRS 141.200 shall be treated
as one
(1)taxpayer.
(4)A taxpayer claiming a credit under this section shall submit receipts to the Energy
and Environment Cabinet in proof of the expenditures claimed. The Energy and
Environment Cabinet shall verify the receipts. After the receipts are verified, the
Finance and Administration Cabinet shall notify the taxpayer of eligibility for the
credit.
(5)The credit may be first claimed on the income tax return of the taxpayer filed in the
taxable year during which the credit was certified. The amount of the allowable
credit for any taxable year shall be twenty-five percent (25%) of the maximum
credit approved. The credit may be carried forward for ten
(10)successive taxable
years.
(6)If the taxpayer is a pass-through entity, the taxpayer shall apply the credit against
the limited liability entity tax imposed by KRS 141.0401, and shall also pass the
credit through to its members, partners, or shareholders in the same proportion as
the distributive share of income or loss is passed through.