State Codes and Statutes

Statutes > Kentucky > 141-00 > 418

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Page 1 of 3 141.418 Nonrefundable credit for voluntary environmental remediation. (1) As used in this section: (a) &quot;Hazardous substances&quot; shall have the meaning provided in KRS 224.01-400; <br>(b) &quot;Pollutant or contaminant&quot; shall have the meaning provided in KRS 224.01-400; (c) &quot;Petroleum&quot; and &quot;petroleum products&quot; shall have the meaning provided in KRS 224.60-115; (d) &quot;Release&quot; shall have the meaning as provided in either or both KRS 224.01-400 and KRS 224.60-115; (e) &quot;Qualifying voluntary environmental remediation property&quot; means real property subject to the provisions of KRS 224.01-400, KRS 224.01-405, or <br>224.60-135 where the Energy and Environment Cabinet has made a <br>determination that: <br>1. All releases of hazardous substances, pollutants, contaminants, <br>petroleum, or petroleum products on the property occurred prior to the <br>property owner's acquisition of the property; 2. The property owner made all appropriate inquiry into previous <br>ownership and uses of the property in accordance with generally <br>accepted practices; 3. The property owner or a responsible party has provided all legally <br>required notices with respect to hazardous substances, pollutants, <br>contaminants, petroleum, or petroleum products found at the property; 4. The property owner is in compliance with all land use restrictions and <br>does not impede the effectiveness or integrity of any institutional <br>control; 5. The property owner complied with any information request or <br>administrative subpoena under KRS Chapter 224; and 6. The property owner is not affiliated with any person who is potentially <br>liable for the release of hazardous substances, pollutants, contaminants, <br>petroleum, or petroleum products on the property pursuant to KRS <br>224.01-400, 224.01-405, or 224.60-135, through: <br>a. Direct or indirect familial relationship; b. Any contractual, corporate, or financial relationship, excluding <br>relationships created by instruments conveying or financing title or <br>by contracts for sale of goods or services; or c. Reorganization of a business entity that was potentially liable; (f) &quot;Expenditures&quot; means payment for work to characterize the extent of contamination and to remediate the contamination at a qualifying voluntary <br>environmental remediation property; and (g) &quot;Taxpayer&quot; means an individual subject to tax under KRS 141.020 or a corporation subject to tax under KRS 141.040. Page 2 of 3 (2) (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, <br>2004, and against the tax imposed by KRS 141.0401 for taxable years <br>beginning after December 31, 2006, for taxpayer expenditures made at a <br>qualifying voluntary environmental remediation property in order to correct <br>the effect of a release of hazardous substances, pollutants, contaminants, <br>petroleum, or petroleum products on the property pursuant to KRS 224. 01-<br>400, 224.01-405, or 224.60-135, consistent with a corrective action plan <br>approved by the Energy and Environment Cabinet pursuant to KRS 224.01-<br>400, 224.01-405, or 224.60-135, and provided the cleanup was not financed <br>through a public grant program or the petroleum storage tank environmental <br>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 <br>liability entity tax imposed under KRS 141.0401, with the ordering of the <br>credits as provided in KRS 141.0205. (3) The maximum total credit for each taxpayer shall not exceed one hundred fifty thousand dollars (&#36;150,000). For purposes of this section, an affiliated group of <br>taxpayers required to file a consolidated return under KRS 141.200 shall be treated <br>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 <br>Environment Cabinet shall verify the receipts. After the receipts are verified, the <br>Finance and Administration Cabinet shall notify the taxpayer of eligibility for the <br>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 <br>credit for any taxable year shall be twenty-five percent (25%) of the maximum <br>credit approved. The credit may be carried forward for ten (10) successive taxable <br>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 <br>credit through to its members, partners, or shareholders in the same proportion as <br>the distributive share of income or loss is passed through. Effective: July 15, 2010 <br>History: Amended 2010 Ky. Acts ch. 24, sec. 112, effective July 15, 2010. -- Amended 2007 Ky. Acts ch. 100, sec. 4, effective June 26, 2007. -- Amended 2006 (1st Extra. <br>Sess.) Ky. Acts ch. 2, sec. 32, effective June 28, 2006. -- Created 2005 Ky. Acts <br>ch. 168, sec. 140, effective March 18, 2005. Legislative Research Commission Note (6/28/2006). 2006 (1st Extra Sess.) Ky. Acts ch. 2, sec. 73, provides that &quot;unless a provision of this Act specifically applies to an <br>earlier tax year, the provisions of this Act shall apply to taxable years beginning on or <br>after January 1, 2007.&quot; Page 3 of 3 Legislative Research Commission Note (3/18/2005). 2005 Ky. Acts ch. 168, sec. 165, provides that this section shall apply to tax years beginning on or after January 1, <br>2005.

State Codes and Statutes

Statutes > Kentucky > 141-00 > 418

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Page 1 of 3 141.418 Nonrefundable credit for voluntary environmental remediation. (1) As used in this section: (a) &quot;Hazardous substances&quot; shall have the meaning provided in KRS 224.01-400; <br>(b) &quot;Pollutant or contaminant&quot; shall have the meaning provided in KRS 224.01-400; (c) &quot;Petroleum&quot; and &quot;petroleum products&quot; shall have the meaning provided in KRS 224.60-115; (d) &quot;Release&quot; shall have the meaning as provided in either or both KRS 224.01-400 and KRS 224.60-115; (e) &quot;Qualifying voluntary environmental remediation property&quot; means real property subject to the provisions of KRS 224.01-400, KRS 224.01-405, or <br>224.60-135 where the Energy and Environment Cabinet has made a <br>determination that: <br>1. All releases of hazardous substances, pollutants, contaminants, <br>petroleum, or petroleum products on the property occurred prior to the <br>property owner's acquisition of the property; 2. The property owner made all appropriate inquiry into previous <br>ownership and uses of the property in accordance with generally <br>accepted practices; 3. The property owner or a responsible party has provided all legally <br>required notices with respect to hazardous substances, pollutants, <br>contaminants, petroleum, or petroleum products found at the property; 4. The property owner is in compliance with all land use restrictions and <br>does not impede the effectiveness or integrity of any institutional <br>control; 5. The property owner complied with any information request or <br>administrative subpoena under KRS Chapter 224; and 6. The property owner is not affiliated with any person who is potentially <br>liable for the release of hazardous substances, pollutants, contaminants, <br>petroleum, or petroleum products on the property pursuant to KRS <br>224.01-400, 224.01-405, or 224.60-135, through: <br>a. Direct or indirect familial relationship; b. Any contractual, corporate, or financial relationship, excluding <br>relationships created by instruments conveying or financing title or <br>by contracts for sale of goods or services; or c. Reorganization of a business entity that was potentially liable; (f) &quot;Expenditures&quot; means payment for work to characterize the extent of contamination and to remediate the contamination at a qualifying voluntary <br>environmental remediation property; and (g) &quot;Taxpayer&quot; means an individual subject to tax under KRS 141.020 or a corporation subject to tax under KRS 141.040. Page 2 of 3 (2) (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, <br>2004, and against the tax imposed by KRS 141.0401 for taxable years <br>beginning after December 31, 2006, for taxpayer expenditures made at a <br>qualifying voluntary environmental remediation property in order to correct <br>the effect of a release of hazardous substances, pollutants, contaminants, <br>petroleum, or petroleum products on the property pursuant to KRS 224. 01-<br>400, 224.01-405, or 224.60-135, consistent with a corrective action plan <br>approved by the Energy and Environment Cabinet pursuant to KRS 224.01-<br>400, 224.01-405, or 224.60-135, and provided the cleanup was not financed <br>through a public grant program or the petroleum storage tank environmental <br>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 <br>liability entity tax imposed under KRS 141.0401, with the ordering of the <br>credits as provided in KRS 141.0205. (3) The maximum total credit for each taxpayer shall not exceed one hundred fifty thousand dollars (&#36;150,000). For purposes of this section, an affiliated group of <br>taxpayers required to file a consolidated return under KRS 141.200 shall be treated <br>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 <br>Environment Cabinet shall verify the receipts. After the receipts are verified, the <br>Finance and Administration Cabinet shall notify the taxpayer of eligibility for the <br>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 <br>credit for any taxable year shall be twenty-five percent (25%) of the maximum <br>credit approved. The credit may be carried forward for ten (10) successive taxable <br>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 <br>credit through to its members, partners, or shareholders in the same proportion as <br>the distributive share of income or loss is passed through. Effective: July 15, 2010 <br>History: Amended 2010 Ky. Acts ch. 24, sec. 112, effective July 15, 2010. -- Amended 2007 Ky. Acts ch. 100, sec. 4, effective June 26, 2007. -- Amended 2006 (1st Extra. <br>Sess.) Ky. Acts ch. 2, sec. 32, effective June 28, 2006. -- Created 2005 Ky. Acts <br>ch. 168, sec. 140, effective March 18, 2005. Legislative Research Commission Note (6/28/2006). 2006 (1st Extra Sess.) Ky. Acts ch. 2, sec. 73, provides that &quot;unless a provision of this Act specifically applies to an <br>earlier tax year, the provisions of this Act shall apply to taxable years beginning on or <br>after January 1, 2007.&quot; Page 3 of 3 Legislative Research Commission Note (3/18/2005). 2005 Ky. Acts ch. 168, sec. 165, provides that this section shall apply to tax years beginning on or after January 1, <br>2005.

State Codes and Statutes

State Codes and Statutes

Statutes > Kentucky > 141-00 > 418

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Page 1 of 3 141.418 Nonrefundable credit for voluntary environmental remediation. (1) As used in this section: (a) &quot;Hazardous substances&quot; shall have the meaning provided in KRS 224.01-400; <br>(b) &quot;Pollutant or contaminant&quot; shall have the meaning provided in KRS 224.01-400; (c) &quot;Petroleum&quot; and &quot;petroleum products&quot; shall have the meaning provided in KRS 224.60-115; (d) &quot;Release&quot; shall have the meaning as provided in either or both KRS 224.01-400 and KRS 224.60-115; (e) &quot;Qualifying voluntary environmental remediation property&quot; means real property subject to the provisions of KRS 224.01-400, KRS 224.01-405, or <br>224.60-135 where the Energy and Environment Cabinet has made a <br>determination that: <br>1. All releases of hazardous substances, pollutants, contaminants, <br>petroleum, or petroleum products on the property occurred prior to the <br>property owner's acquisition of the property; 2. The property owner made all appropriate inquiry into previous <br>ownership and uses of the property in accordance with generally <br>accepted practices; 3. The property owner or a responsible party has provided all legally <br>required notices with respect to hazardous substances, pollutants, <br>contaminants, petroleum, or petroleum products found at the property; 4. The property owner is in compliance with all land use restrictions and <br>does not impede the effectiveness or integrity of any institutional <br>control; 5. The property owner complied with any information request or <br>administrative subpoena under KRS Chapter 224; and 6. The property owner is not affiliated with any person who is potentially <br>liable for the release of hazardous substances, pollutants, contaminants, <br>petroleum, or petroleum products on the property pursuant to KRS <br>224.01-400, 224.01-405, or 224.60-135, through: <br>a. Direct or indirect familial relationship; b. Any contractual, corporate, or financial relationship, excluding <br>relationships created by instruments conveying or financing title or <br>by contracts for sale of goods or services; or c. Reorganization of a business entity that was potentially liable; (f) &quot;Expenditures&quot; means payment for work to characterize the extent of contamination and to remediate the contamination at a qualifying voluntary <br>environmental remediation property; and (g) &quot;Taxpayer&quot; means an individual subject to tax under KRS 141.020 or a corporation subject to tax under KRS 141.040. Page 2 of 3 (2) (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, <br>2004, and against the tax imposed by KRS 141.0401 for taxable years <br>beginning after December 31, 2006, for taxpayer expenditures made at a <br>qualifying voluntary environmental remediation property in order to correct <br>the effect of a release of hazardous substances, pollutants, contaminants, <br>petroleum, or petroleum products on the property pursuant to KRS 224. 01-<br>400, 224.01-405, or 224.60-135, consistent with a corrective action plan <br>approved by the Energy and Environment Cabinet pursuant to KRS 224.01-<br>400, 224.01-405, or 224.60-135, and provided the cleanup was not financed <br>through a public grant program or the petroleum storage tank environmental <br>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 <br>liability entity tax imposed under KRS 141.0401, with the ordering of the <br>credits as provided in KRS 141.0205. (3) The maximum total credit for each taxpayer shall not exceed one hundred fifty thousand dollars (&#36;150,000). For purposes of this section, an affiliated group of <br>taxpayers required to file a consolidated return under KRS 141.200 shall be treated <br>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 <br>Environment Cabinet shall verify the receipts. After the receipts are verified, the <br>Finance and Administration Cabinet shall notify the taxpayer of eligibility for the <br>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 <br>credit for any taxable year shall be twenty-five percent (25%) of the maximum <br>credit approved. The credit may be carried forward for ten (10) successive taxable <br>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 <br>credit through to its members, partners, or shareholders in the same proportion as <br>the distributive share of income or loss is passed through. Effective: July 15, 2010 <br>History: Amended 2010 Ky. Acts ch. 24, sec. 112, effective July 15, 2010. -- Amended 2007 Ky. Acts ch. 100, sec. 4, effective June 26, 2007. -- Amended 2006 (1st Extra. <br>Sess.) Ky. Acts ch. 2, sec. 32, effective June 28, 2006. -- Created 2005 Ky. Acts <br>ch. 168, sec. 140, effective March 18, 2005. Legislative Research Commission Note (6/28/2006). 2006 (1st Extra Sess.) Ky. Acts ch. 2, sec. 73, provides that &quot;unless a provision of this Act specifically applies to an <br>earlier tax year, the provisions of this Act shall apply to taxable years beginning on or <br>after January 1, 2007.&quot; Page 3 of 3 Legislative Research Commission Note (3/18/2005). 2005 Ky. Acts ch. 168, sec. 165, provides that this section shall apply to tax years beginning on or after January 1, <br>2005.