246.700 Renewable Chemical Production Program.
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/ky/chapter-246/246-700A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)The department shall create and administer the Renewable Chemical
Production Program by promulgating administrative regulations under KRS
Chapter 13A and authorizing tax credits for that production.
(b)The department may consult with the chemical engineering departments of
any university to create and administer the Renewable Chemical Production
Program that may best serve this Commonwealth.
(c)The department shall coordinate with the Department of Revenue related to
awarding tax credits while remaining within the annual biodiesel, renewable
diesel, and renewable chemical production tax credit cap provided in KRS
141.422.
(2)To be eligible for receiving the renewable chemical production tax credit under
KRS 141.4231, a business shall:
(a)Be physically located in this state;
(b)Operate for profit;
(c)Organize, expand, or locate in this state on or after July 1, 2020;
(d)1. Create new jobs and retain those jobs for at least four
(4)years; or
2. Invest a substantial amount of new capital in the Commonwealth and
maintain that capital for at least four
(4)years;
(e)Certify to the department:
1. That the business:
a. Has not applied for and will not receive economic development
incentives under KRS Chapter 154 for the jobs created or capital
investment made under the Renewable Chemical Production
Program; and
b. Is in compliance with all agreements entered into under the
Renewable Chemical Production Program or other programs
administered by the department; and
2. The date that the business first qualified as an eligible business;
(f)Not provide professional services, health care services, or medical treatments,
or engage in retail operations; and
(g)Not relocate operations from another area of the state or reduce operations in
another area of the state while seeking this incentive. To determine whether a
project meets the requirement under this paragraph, the department shall:
1. Consider a project that does not create new jobs or invest a substantial
amount of new capital a relocation or reduction in operations; and
2. Require sufficient data from the business related to jobs created and the
amount of substantial capital investment before the business applies for
this incentive and for four
(4)years following the approval of this
incentive to ensure that new jobs or substantial capital investment have
occurred and remain productive in this state;
(a)Before being approved for the tax credit permitted by KRS 141.4231, an
eligible business shall enter into an agreement with the department for the
successful completion of all requirements of the program.
(b)As part of the agreement, the eligible business shall agree to:
1. Collect and provide all information required by the department, allowing
the department and the Department of Revenue to maintain the annual
tax credit cap and to fulfill each of the reporting and compliance
obligations under this section and KRS 141.4231; and
2. Agree to allow information about the production of renewable chemicals
and the related tax credit to be shared with the Interim Joint Committee
on Appropriations and Revenue.
(c)The business shall not receive a tax credit for renewable chemicals produced
before the date the business first qualified as an eligible business.
(a)The department may impose a nonrefundable compliance cost fee of five
hundred dollars ($500), collected by the department at the time a business
applies for participation in the program.
(b)An eligible business shall fulfill all the requirements of the program and the
agreement before receiving a tax credit or entering into a subsequent
agreement under this section.
(c)The department may decline to enter into a subsequent agreement under this
section or award a tax credit if an agreement is not successfully fulfilled.
(a)After the production of renewable chemicals by an eligible business, the
business shall apply, in the manner prescribed by the department, for the
renewable chemicals production tax credit. The application shall include the
following information:
1. A description of the renewable chemicals produced in this state;
2. The amount or volume of renewable chemicals produced;
3. The costs associated with the production of the renewable chemicals;
4. The amount of gross receipts generated by the sale of the renewable
chemicals; and
5. Any other information required by the department in order to establish
and verify eligibility under the program.
(b)The department may accept applications on a continuous basis or may
establish, by administrative regulation, an annual application deadline.
(6)Upon establishing that all requirements of the program and the agreement have been
fulfilled, the department shall certify the amount of preliminary tax credit for the
applicant to the Department of Revenue.
(a)The department shall work with the Department of Revenue to provide all
information necessary to ensure compliance with KRS Chapter 141 by the
successful tax credit applicant.
(b)On or before December 31, 2020, and on or before each December 31
thereafter, the department shall submit to the Department of Revenue all
information received from each eligible business related to the renewable
chemical production tax credit.
(c)When the Department of Revenue receives the information provided under
paragraph
(b)of this subsection, the Department of Revenue shall consider the
renewable chemical production tax credit applications together with the total
amount of approved credit for all biodiesel producers, biodiesel blenders, and
renewable diesel producers required in KRS 141.423.
(8)The Renewable Chemical Production Program shall sunset on December 31, 2024.
(a)Failure to fulfill any requirement of the program or any of the terms and
obligations of an agreement entered into under this section by an eligible
business shall:
1. Result in the rescission of the tax credit permitted by KRS 141.4231 by
the department; and
2. Subject the eligible business to the repayment of all tax credits claimed.
(b)Upon the rescission of any tax credit, the department shall report to the
Department of Revenue, within thirty
(30)days, all information necessary by
the Department of Revenue to ensure compliance with KRS Chapter 141.