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Statutes > Kentucky > 154-27 > 010

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Page 1 of 5 154.27-010 Definitions for subchapter. As used in this subchapter: <br>(1) &quot;Activation date&quot; means the date on which an approved company begins incurring recoverable costs or engaging in recoverable activity pursuant to the tax incentive <br>agreement. The activation date shall be set forth in the tax incentive agreement and <br>shall be a date within five (5) years of the date of final approval of the tax incentive <br>agreement. The authority may extend the five (5) year period to no more than seven <br>(7) years upon written application for an extension by the approved company. To <br>implement the activation date, the approved company shall notify the authority of <br>its intent to activate the tax incentives authorized in the tax incentive agreement. <br>The activation date shall apply to all incentives included in the tax incentive <br>agreement regardless of whether the approved company has met the requirements to <br>receive all incentives at that time. If the approved company does not implement the <br>activation date before the date established in the tax incentive agreement, the <br>activation date shall be the date established in the tax incentive agreement; (2) &quot;Affiliate&quot; has the same meaning as in KRS 154.22-010; <br>(3) (a) &quot;Alternative fuel facility&quot; means a facility located in Kentucky that is newly constructed on or after August 30, 2007, or an existing facility located in <br>Kentucky that is retrofitted or upgraded on or after August 30, 2007, and that, <br>after the new construction, retrofit, or upgrade, primarily produces for sale <br>alternative transportation fuels. For a retrofit of an existing facility, the new <br>modification or addition within the facility shall primarily produce alternative <br>transportation fuel for sale. (b) The alternative fuel facility may produce electricity as a by-product if the primary purpose for which the facility is constructed, retrofitted, or upgraded, <br>and the primary function of the facility remains the production and sale of <br>alternative transportation fuels; (4) &quot;Alternative transportation fuels&quot; has the same meaning as in KRS 152.715; <br>(5) &quot;Approved company&quot; means a corporation, limited liability company, partnership, registered limited liability partnership, sole proprietorship, business trust, or any <br>other entity approved for incentives for an eligible project; (6) &quot;Authority&quot; means the Kentucky Economic Development Finance Authority established by KRS 154.20-010; (7) &quot;Base amount&quot; means the tons of coal, thousand (1000) cubic foot units (Mcf) of natural gas, or gallons of natural gas liquids purchased and used or severed and used <br>by the approved company as feedstock for an eligible project during the twelve (12) <br>months prior to the month in which the approved company first begins receiving <br>incentives under KRS 143.024 or 143A.025, and 154.27-060, that were subject to <br>the tax imposed by KRS 143.020 or 143A.020; (8) &quot;Biomass resources&quot; has the same meaning as in KRS 152.715; <br>(9) (a) &quot;Capital investment&quot; means: 1. Obligations incurred for labor and to contractors, subcontractors, <br>builders, and materialmen in connection with the acquisition, Page 2 of 5 construction, installation, equipping, upgrading, or retrofitting of an <br>eligible project; 2. The cost of acquiring land or rights in land and any cost incident thereto, <br>including recording fees; 3. The cost of contract bonds and of insurance of all kinds that may be <br>required or necessary during the course of acquisition, construction, <br>installation, equipping, upgrading, or retrofitting of an eligible project <br>which is not paid by the contractor or otherwise provided; 4. All costs of architectural and engineering services, including test <br>borings, surveys, estimates, plans, specifications, preliminary <br>investigations, supervision of construction, and the performance of all <br>the duties required by or consequent upon the acquisition, construction, <br>installation, equipping, upgrading, or retrofitting of an eligible project; 5. All costs required to be paid under the terms of any contract for the <br>acquisition, construction, installation, equipping, upgrading, or <br>retrofitting of an eligible project; and 6. All other costs of a nature comparable to those described in this <br>subsection. (b) &quot;Capital investment&quot; does not include costs described in paragraph (a) of this subsection that are paid for with funds received from the federal government <br>or that are reimbursed by the federal government; (10) &quot;Carbon capture ready&quot; means planning for or anticipating capture of carbon dioxide in a manner to facilitate continued operation of the facility in compliance <br>with applicable federal requirements; (11) &quot;Center for Applied Energy Research&quot; means the University of Kentucky Center for Applied Energy Research; (12) &quot;Commonwealth&quot; means the Commonwealth of Kentucky; <br>(13) &quot;Construction period&quot; means the period beginning with the activation date of the eligible project and ending on a date set forth in the tax incentive agreement, which <br>shall be no later than five (5) years from the activation date; (14) &quot;Department&quot; means the Department of Revenue; <br>(15) &quot;Eligible project&quot; means: (a) An alternative fuel facility or a gasification facility meeting the investment requirements of KRS 154.27-020; (b) An energy-efficient alternative fuel facility meeting the investment requirements of KRS 154.27-020; or (c) A renewable energy facility meeting the investment requirements of KRS 154.27-020; (16) &quot;Energy-efficient alternative fuel facility&quot; means a facility located in Kentucky that is newly constructed on or after August 30, 2010, or an existing facility located in <br>Kentucky that is retrofitted or upgraded on or after August 30, 2010, and that, after <br>the new construction, retrofit, or upgrade, will produce for sale energy-efficient Page 3 of 5 alternative fuels. For a retrofit of an existing facility, the new modification or <br>addition within the facility shall produce for sale energy-efficient alternative fuels; (17) &quot;Energy-efficient alternative fuels&quot; means homogeneous fuels that: (a) Are produced from processes designed to densify feedstock coal, waste coal, or biomass resources; and (b) Have an energy content that is greater than the feedstock coal, waste coal, or biomass resource; (18) &quot;Estimated labor component&quot; means the projected percentage of the total capital investment attributable to labor; (19) (a) &quot;Facility&quot; means a single location within the Commonwealth at which machinery and equipment are used in a manufacturing process that transforms <br>raw materials into a product with commercial value. <br>1. The facility shall include the physical plant structure where the <br>manufacturing process occurs and machinery and equipment within the <br>physical plant structure. 2. The facility may include: <br>a. On-site machinery and equipment used exclusively for processing <br>coal or other raw materials for use in the manufacturing process at <br>the facility; b. For an alternative fuel facility or gasification facility, on-site power <br>station operations, if those operations are primarily used to <br>produce electricity for the facility; c. On-site refining operations, if those operations are used <br>exclusively to refine and blend fuels produced by the facility; and d. The in-state portion of a pipeline, including appurtenant facilities, <br>property rights, and easements, if the exclusive purpose of the <br>pipeline is to transport carbon dioxide from the facility to a point <br>of sale, storage, or other carbon management applications. (b) &quot;Facility&quot; shall not include any mining operations, or drilling and production operations for natural gas; (20) &quot;Gasification process&quot; means a process that converts any carbon-containing material into a synthesis gas composed primarily of carbon monoxide and hydrogen; (21) (a) &quot;Gasification facility&quot; means a facility located in Kentucky that is newly constructed on or after August 30, 2007, or an existing facility located in <br>Kentucky that is retrofitted or upgraded on or after August 30, 2007, and that, <br>after the new construction, retrofit, or upgrade, primarily produces for sale: <br>1. Alternative transportation fuels; 2. Synthetic natural gas; 3. Chemicals; 4. Chemical feedstocks; or 5. Liquid fuels; Page 4 of 5 from coal, waste coal, coal-processing waste, or biomass resources, through a <br>gasification process. For a retrofit of an existing facility, the new modification <br>or addition within the facility shall primarily produce one (1) or more of the <br>products set forth in this paragraph. (b) The gasification facility may produce electricity as a by-product if the primary purpose for which the facility is constructed, retrofitted, or upgraded, and the <br>primary function of the facility remains the production and sale of alternative <br>transportation fuels, synthetic natural gas, chemicals, chemical feedstocks, or <br>liquid fuels; (22) &quot;Kentucky gross profits&quot; has the same meaning as in KRS 141.0401; <br>(23) &quot;Kentucky gross receipts&quot; has the same meaning as in KRS 141.0401; <br>(24) &quot;Post-construction incentives&quot; means the incentives available under KRS 154.27-060 and 154.27-080; (25) &quot;Renewable energy facility&quot; means a facility located in Kentucky that is newly constructed on or after August 30, 2007, or an existing facility located in Kentucky <br>that is retrofitted or upgraded after August 30, 2007, and that, after the new <br>construction, retrofit, or upgrade, utilizes: <br>(a) Wind power, biomass resources, landfill methane gas, hydropower, or other similar renewable resources to generate electricity in excess of one (1) <br>megawatt for sale to unrelated entities; or (b) Solar power to generate electricity in excess of fifty (50) kilowatts for sale to unrelated entities. For a retrofit of an existing facility, the modification or addition shall primarily <br>result in the production of electricity as described in paragraph (a) or (b) of this <br>subsection; (26) &quot;Resident&quot; has the same meaning as in KRS 141.010; <br>(27) &quot;Retrofit&quot; means a modification or addition to an existing facility that results in the production of a new and different product or uses a new or different process to <br>produce the same product at the facility. Modifications or additions to a facility that <br>maintain, restore, mend, or repair a facility shall not be considered a retrofit of the <br>facility, and shall not be considered part of the capital investment if undertaken at <br>the same time as a retrofit; (28) &quot;Synthetic natural gas&quot; has the same meaning as in KRS 152.715; <br>(29) &quot;Tax incentive agreement&quot; means an agreement entered into in accordance with KRS 154.27-040; (30) &quot;Termination date&quot; means a date established by the tax incentive agreement that is no more than twenty-five (25) years from the activation date; and (31) &quot;Upgrade&quot; means an investment in an existing facility that results in an increase in the productivity of the facility. Increased productivity shall be measured in relation <br>to the type of products that are required to be produced by that facility to be an <br>eligible project. Effective: July 15, 2010 Page 5 of 5 History: Amended 2010 Ky. Acts ch. 24, sec. 199, effective July 15, 2010; ch. 60, sec. 1, effective July 15, 2010; and ch. 139, sec. 2, effective July 15, 2010. -- Created <br>2007 (2d Extra. Sess.) Ky. Acts ch. 1, sec. 1, effective August 30, 2007. Legislative Research Commission Note (7/15/2010). This section was amended by 2010 Ky. Acts chs. 24, 60, and 139, which do not appear to be in conflict and have <br>been codified together.

State Codes and Statutes

Statutes > Kentucky > 154-27 > 010

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Page 1 of 5 154.27-010 Definitions for subchapter. As used in this subchapter: <br>(1) &quot;Activation date&quot; means the date on which an approved company begins incurring recoverable costs or engaging in recoverable activity pursuant to the tax incentive <br>agreement. The activation date shall be set forth in the tax incentive agreement and <br>shall be a date within five (5) years of the date of final approval of the tax incentive <br>agreement. The authority may extend the five (5) year period to no more than seven <br>(7) years upon written application for an extension by the approved company. To <br>implement the activation date, the approved company shall notify the authority of <br>its intent to activate the tax incentives authorized in the tax incentive agreement. <br>The activation date shall apply to all incentives included in the tax incentive <br>agreement regardless of whether the approved company has met the requirements to <br>receive all incentives at that time. If the approved company does not implement the <br>activation date before the date established in the tax incentive agreement, the <br>activation date shall be the date established in the tax incentive agreement; (2) &quot;Affiliate&quot; has the same meaning as in KRS 154.22-010; <br>(3) (a) &quot;Alternative fuel facility&quot; means a facility located in Kentucky that is newly constructed on or after August 30, 2007, or an existing facility located in <br>Kentucky that is retrofitted or upgraded on or after August 30, 2007, and that, <br>after the new construction, retrofit, or upgrade, primarily produces for sale <br>alternative transportation fuels. For a retrofit of an existing facility, the new <br>modification or addition within the facility shall primarily produce alternative <br>transportation fuel for sale. (b) The alternative fuel facility may produce electricity as a by-product if the primary purpose for which the facility is constructed, retrofitted, or upgraded, <br>and the primary function of the facility remains the production and sale of <br>alternative transportation fuels; (4) &quot;Alternative transportation fuels&quot; has the same meaning as in KRS 152.715; <br>(5) &quot;Approved company&quot; means a corporation, limited liability company, partnership, registered limited liability partnership, sole proprietorship, business trust, or any <br>other entity approved for incentives for an eligible project; (6) &quot;Authority&quot; means the Kentucky Economic Development Finance Authority established by KRS 154.20-010; (7) &quot;Base amount&quot; means the tons of coal, thousand (1000) cubic foot units (Mcf) of natural gas, or gallons of natural gas liquids purchased and used or severed and used <br>by the approved company as feedstock for an eligible project during the twelve (12) <br>months prior to the month in which the approved company first begins receiving <br>incentives under KRS 143.024 or 143A.025, and 154.27-060, that were subject to <br>the tax imposed by KRS 143.020 or 143A.020; (8) &quot;Biomass resources&quot; has the same meaning as in KRS 152.715; <br>(9) (a) &quot;Capital investment&quot; means: 1. Obligations incurred for labor and to contractors, subcontractors, <br>builders, and materialmen in connection with the acquisition, Page 2 of 5 construction, installation, equipping, upgrading, or retrofitting of an <br>eligible project; 2. The cost of acquiring land or rights in land and any cost incident thereto, <br>including recording fees; 3. The cost of contract bonds and of insurance of all kinds that may be <br>required or necessary during the course of acquisition, construction, <br>installation, equipping, upgrading, or retrofitting of an eligible project <br>which is not paid by the contractor or otherwise provided; 4. All costs of architectural and engineering services, including test <br>borings, surveys, estimates, plans, specifications, preliminary <br>investigations, supervision of construction, and the performance of all <br>the duties required by or consequent upon the acquisition, construction, <br>installation, equipping, upgrading, or retrofitting of an eligible project; 5. All costs required to be paid under the terms of any contract for the <br>acquisition, construction, installation, equipping, upgrading, or <br>retrofitting of an eligible project; and 6. All other costs of a nature comparable to those described in this <br>subsection. (b) &quot;Capital investment&quot; does not include costs described in paragraph (a) of this subsection that are paid for with funds received from the federal government <br>or that are reimbursed by the federal government; (10) &quot;Carbon capture ready&quot; means planning for or anticipating capture of carbon dioxide in a manner to facilitate continued operation of the facility in compliance <br>with applicable federal requirements; (11) &quot;Center for Applied Energy Research&quot; means the University of Kentucky Center for Applied Energy Research; (12) &quot;Commonwealth&quot; means the Commonwealth of Kentucky; <br>(13) &quot;Construction period&quot; means the period beginning with the activation date of the eligible project and ending on a date set forth in the tax incentive agreement, which <br>shall be no later than five (5) years from the activation date; (14) &quot;Department&quot; means the Department of Revenue; <br>(15) &quot;Eligible project&quot; means: (a) An alternative fuel facility or a gasification facility meeting the investment requirements of KRS 154.27-020; (b) An energy-efficient alternative fuel facility meeting the investment requirements of KRS 154.27-020; or (c) A renewable energy facility meeting the investment requirements of KRS 154.27-020; (16) &quot;Energy-efficient alternative fuel facility&quot; means a facility located in Kentucky that is newly constructed on or after August 30, 2010, or an existing facility located in <br>Kentucky that is retrofitted or upgraded on or after August 30, 2010, and that, after <br>the new construction, retrofit, or upgrade, will produce for sale energy-efficient Page 3 of 5 alternative fuels. For a retrofit of an existing facility, the new modification or <br>addition within the facility shall produce for sale energy-efficient alternative fuels; (17) &quot;Energy-efficient alternative fuels&quot; means homogeneous fuels that: (a) Are produced from processes designed to densify feedstock coal, waste coal, or biomass resources; and (b) Have an energy content that is greater than the feedstock coal, waste coal, or biomass resource; (18) &quot;Estimated labor component&quot; means the projected percentage of the total capital investment attributable to labor; (19) (a) &quot;Facility&quot; means a single location within the Commonwealth at which machinery and equipment are used in a manufacturing process that transforms <br>raw materials into a product with commercial value. <br>1. The facility shall include the physical plant structure where the <br>manufacturing process occurs and machinery and equipment within the <br>physical plant structure. 2. The facility may include: <br>a. On-site machinery and equipment used exclusively for processing <br>coal or other raw materials for use in the manufacturing process at <br>the facility; b. For an alternative fuel facility or gasification facility, on-site power <br>station operations, if those operations are primarily used to <br>produce electricity for the facility; c. On-site refining operations, if those operations are used <br>exclusively to refine and blend fuels produced by the facility; and d. The in-state portion of a pipeline, including appurtenant facilities, <br>property rights, and easements, if the exclusive purpose of the <br>pipeline is to transport carbon dioxide from the facility to a point <br>of sale, storage, or other carbon management applications. (b) &quot;Facility&quot; shall not include any mining operations, or drilling and production operations for natural gas; (20) &quot;Gasification process&quot; means a process that converts any carbon-containing material into a synthesis gas composed primarily of carbon monoxide and hydrogen; (21) (a) &quot;Gasification facility&quot; means a facility located in Kentucky that is newly constructed on or after August 30, 2007, or an existing facility located in <br>Kentucky that is retrofitted or upgraded on or after August 30, 2007, and that, <br>after the new construction, retrofit, or upgrade, primarily produces for sale: <br>1. Alternative transportation fuels; 2. Synthetic natural gas; 3. Chemicals; 4. Chemical feedstocks; or 5. Liquid fuels; Page 4 of 5 from coal, waste coal, coal-processing waste, or biomass resources, through a <br>gasification process. For a retrofit of an existing facility, the new modification <br>or addition within the facility shall primarily produce one (1) or more of the <br>products set forth in this paragraph. (b) The gasification facility may produce electricity as a by-product if the primary purpose for which the facility is constructed, retrofitted, or upgraded, and the <br>primary function of the facility remains the production and sale of alternative <br>transportation fuels, synthetic natural gas, chemicals, chemical feedstocks, or <br>liquid fuels; (22) &quot;Kentucky gross profits&quot; has the same meaning as in KRS 141.0401; <br>(23) &quot;Kentucky gross receipts&quot; has the same meaning as in KRS 141.0401; <br>(24) &quot;Post-construction incentives&quot; means the incentives available under KRS 154.27-060 and 154.27-080; (25) &quot;Renewable energy facility&quot; means a facility located in Kentucky that is newly constructed on or after August 30, 2007, or an existing facility located in Kentucky <br>that is retrofitted or upgraded after August 30, 2007, and that, after the new <br>construction, retrofit, or upgrade, utilizes: <br>(a) Wind power, biomass resources, landfill methane gas, hydropower, or other similar renewable resources to generate electricity in excess of one (1) <br>megawatt for sale to unrelated entities; or (b) Solar power to generate electricity in excess of fifty (50) kilowatts for sale to unrelated entities. For a retrofit of an existing facility, the modification or addition shall primarily <br>result in the production of electricity as described in paragraph (a) or (b) of this <br>subsection; (26) &quot;Resident&quot; has the same meaning as in KRS 141.010; <br>(27) &quot;Retrofit&quot; means a modification or addition to an existing facility that results in the production of a new and different product or uses a new or different process to <br>produce the same product at the facility. Modifications or additions to a facility that <br>maintain, restore, mend, or repair a facility shall not be considered a retrofit of the <br>facility, and shall not be considered part of the capital investment if undertaken at <br>the same time as a retrofit; (28) &quot;Synthetic natural gas&quot; has the same meaning as in KRS 152.715; <br>(29) &quot;Tax incentive agreement&quot; means an agreement entered into in accordance with KRS 154.27-040; (30) &quot;Termination date&quot; means a date established by the tax incentive agreement that is no more than twenty-five (25) years from the activation date; and (31) &quot;Upgrade&quot; means an investment in an existing facility that results in an increase in the productivity of the facility. Increased productivity shall be measured in relation <br>to the type of products that are required to be produced by that facility to be an <br>eligible project. Effective: July 15, 2010 Page 5 of 5 History: Amended 2010 Ky. Acts ch. 24, sec. 199, effective July 15, 2010; ch. 60, sec. 1, effective July 15, 2010; and ch. 139, sec. 2, effective July 15, 2010. -- Created <br>2007 (2d Extra. Sess.) Ky. Acts ch. 1, sec. 1, effective August 30, 2007. Legislative Research Commission Note (7/15/2010). This section was amended by 2010 Ky. Acts chs. 24, 60, and 139, which do not appear to be in conflict and have <br>been codified together.

State Codes and Statutes

State Codes and Statutes

Statutes > Kentucky > 154-27 > 010

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Page 1 of 5 154.27-010 Definitions for subchapter. As used in this subchapter: <br>(1) &quot;Activation date&quot; means the date on which an approved company begins incurring recoverable costs or engaging in recoverable activity pursuant to the tax incentive <br>agreement. The activation date shall be set forth in the tax incentive agreement and <br>shall be a date within five (5) years of the date of final approval of the tax incentive <br>agreement. The authority may extend the five (5) year period to no more than seven <br>(7) years upon written application for an extension by the approved company. To <br>implement the activation date, the approved company shall notify the authority of <br>its intent to activate the tax incentives authorized in the tax incentive agreement. <br>The activation date shall apply to all incentives included in the tax incentive <br>agreement regardless of whether the approved company has met the requirements to <br>receive all incentives at that time. If the approved company does not implement the <br>activation date before the date established in the tax incentive agreement, the <br>activation date shall be the date established in the tax incentive agreement; (2) &quot;Affiliate&quot; has the same meaning as in KRS 154.22-010; <br>(3) (a) &quot;Alternative fuel facility&quot; means a facility located in Kentucky that is newly constructed on or after August 30, 2007, or an existing facility located in <br>Kentucky that is retrofitted or upgraded on or after August 30, 2007, and that, <br>after the new construction, retrofit, or upgrade, primarily produces for sale <br>alternative transportation fuels. For a retrofit of an existing facility, the new <br>modification or addition within the facility shall primarily produce alternative <br>transportation fuel for sale. (b) The alternative fuel facility may produce electricity as a by-product if the primary purpose for which the facility is constructed, retrofitted, or upgraded, <br>and the primary function of the facility remains the production and sale of <br>alternative transportation fuels; (4) &quot;Alternative transportation fuels&quot; has the same meaning as in KRS 152.715; <br>(5) &quot;Approved company&quot; means a corporation, limited liability company, partnership, registered limited liability partnership, sole proprietorship, business trust, or any <br>other entity approved for incentives for an eligible project; (6) &quot;Authority&quot; means the Kentucky Economic Development Finance Authority established by KRS 154.20-010; (7) &quot;Base amount&quot; means the tons of coal, thousand (1000) cubic foot units (Mcf) of natural gas, or gallons of natural gas liquids purchased and used or severed and used <br>by the approved company as feedstock for an eligible project during the twelve (12) <br>months prior to the month in which the approved company first begins receiving <br>incentives under KRS 143.024 or 143A.025, and 154.27-060, that were subject to <br>the tax imposed by KRS 143.020 or 143A.020; (8) &quot;Biomass resources&quot; has the same meaning as in KRS 152.715; <br>(9) (a) &quot;Capital investment&quot; means: 1. Obligations incurred for labor and to contractors, subcontractors, <br>builders, and materialmen in connection with the acquisition, Page 2 of 5 construction, installation, equipping, upgrading, or retrofitting of an <br>eligible project; 2. The cost of acquiring land or rights in land and any cost incident thereto, <br>including recording fees; 3. The cost of contract bonds and of insurance of all kinds that may be <br>required or necessary during the course of acquisition, construction, <br>installation, equipping, upgrading, or retrofitting of an eligible project <br>which is not paid by the contractor or otherwise provided; 4. All costs of architectural and engineering services, including test <br>borings, surveys, estimates, plans, specifications, preliminary <br>investigations, supervision of construction, and the performance of all <br>the duties required by or consequent upon the acquisition, construction, <br>installation, equipping, upgrading, or retrofitting of an eligible project; 5. All costs required to be paid under the terms of any contract for the <br>acquisition, construction, installation, equipping, upgrading, or <br>retrofitting of an eligible project; and 6. All other costs of a nature comparable to those described in this <br>subsection. (b) &quot;Capital investment&quot; does not include costs described in paragraph (a) of this subsection that are paid for with funds received from the federal government <br>or that are reimbursed by the federal government; (10) &quot;Carbon capture ready&quot; means planning for or anticipating capture of carbon dioxide in a manner to facilitate continued operation of the facility in compliance <br>with applicable federal requirements; (11) &quot;Center for Applied Energy Research&quot; means the University of Kentucky Center for Applied Energy Research; (12) &quot;Commonwealth&quot; means the Commonwealth of Kentucky; <br>(13) &quot;Construction period&quot; means the period beginning with the activation date of the eligible project and ending on a date set forth in the tax incentive agreement, which <br>shall be no later than five (5) years from the activation date; (14) &quot;Department&quot; means the Department of Revenue; <br>(15) &quot;Eligible project&quot; means: (a) An alternative fuel facility or a gasification facility meeting the investment requirements of KRS 154.27-020; (b) An energy-efficient alternative fuel facility meeting the investment requirements of KRS 154.27-020; or (c) A renewable energy facility meeting the investment requirements of KRS 154.27-020; (16) &quot;Energy-efficient alternative fuel facility&quot; means a facility located in Kentucky that is newly constructed on or after August 30, 2010, or an existing facility located in <br>Kentucky that is retrofitted or upgraded on or after August 30, 2010, and that, after <br>the new construction, retrofit, or upgrade, will produce for sale energy-efficient Page 3 of 5 alternative fuels. For a retrofit of an existing facility, the new modification or <br>addition within the facility shall produce for sale energy-efficient alternative fuels; (17) &quot;Energy-efficient alternative fuels&quot; means homogeneous fuels that: (a) Are produced from processes designed to densify feedstock coal, waste coal, or biomass resources; and (b) Have an energy content that is greater than the feedstock coal, waste coal, or biomass resource; (18) &quot;Estimated labor component&quot; means the projected percentage of the total capital investment attributable to labor; (19) (a) &quot;Facility&quot; means a single location within the Commonwealth at which machinery and equipment are used in a manufacturing process that transforms <br>raw materials into a product with commercial value. <br>1. The facility shall include the physical plant structure where the <br>manufacturing process occurs and machinery and equipment within the <br>physical plant structure. 2. The facility may include: <br>a. On-site machinery and equipment used exclusively for processing <br>coal or other raw materials for use in the manufacturing process at <br>the facility; b. For an alternative fuel facility or gasification facility, on-site power <br>station operations, if those operations are primarily used to <br>produce electricity for the facility; c. On-site refining operations, if those operations are used <br>exclusively to refine and blend fuels produced by the facility; and d. The in-state portion of a pipeline, including appurtenant facilities, <br>property rights, and easements, if the exclusive purpose of the <br>pipeline is to transport carbon dioxide from the facility to a point <br>of sale, storage, or other carbon management applications. (b) &quot;Facility&quot; shall not include any mining operations, or drilling and production operations for natural gas; (20) &quot;Gasification process&quot; means a process that converts any carbon-containing material into a synthesis gas composed primarily of carbon monoxide and hydrogen; (21) (a) &quot;Gasification facility&quot; means a facility located in Kentucky that is newly constructed on or after August 30, 2007, or an existing facility located in <br>Kentucky that is retrofitted or upgraded on or after August 30, 2007, and that, <br>after the new construction, retrofit, or upgrade, primarily produces for sale: <br>1. Alternative transportation fuels; 2. Synthetic natural gas; 3. Chemicals; 4. Chemical feedstocks; or 5. Liquid fuels; Page 4 of 5 from coal, waste coal, coal-processing waste, or biomass resources, through a <br>gasification process. For a retrofit of an existing facility, the new modification <br>or addition within the facility shall primarily produce one (1) or more of the <br>products set forth in this paragraph. (b) The gasification facility may produce electricity as a by-product if the primary purpose for which the facility is constructed, retrofitted, or upgraded, and the <br>primary function of the facility remains the production and sale of alternative <br>transportation fuels, synthetic natural gas, chemicals, chemical feedstocks, or <br>liquid fuels; (22) &quot;Kentucky gross profits&quot; has the same meaning as in KRS 141.0401; <br>(23) &quot;Kentucky gross receipts&quot; has the same meaning as in KRS 141.0401; <br>(24) &quot;Post-construction incentives&quot; means the incentives available under KRS 154.27-060 and 154.27-080; (25) &quot;Renewable energy facility&quot; means a facility located in Kentucky that is newly constructed on or after August 30, 2007, or an existing facility located in Kentucky <br>that is retrofitted or upgraded after August 30, 2007, and that, after the new <br>construction, retrofit, or upgrade, utilizes: <br>(a) Wind power, biomass resources, landfill methane gas, hydropower, or other similar renewable resources to generate electricity in excess of one (1) <br>megawatt for sale to unrelated entities; or (b) Solar power to generate electricity in excess of fifty (50) kilowatts for sale to unrelated entities. For a retrofit of an existing facility, the modification or addition shall primarily <br>result in the production of electricity as described in paragraph (a) or (b) of this <br>subsection; (26) &quot;Resident&quot; has the same meaning as in KRS 141.010; <br>(27) &quot;Retrofit&quot; means a modification or addition to an existing facility that results in the production of a new and different product or uses a new or different process to <br>produce the same product at the facility. Modifications or additions to a facility that <br>maintain, restore, mend, or repair a facility shall not be considered a retrofit of the <br>facility, and shall not be considered part of the capital investment if undertaken at <br>the same time as a retrofit; (28) &quot;Synthetic natural gas&quot; has the same meaning as in KRS 152.715; <br>(29) &quot;Tax incentive agreement&quot; means an agreement entered into in accordance with KRS 154.27-040; (30) &quot;Termination date&quot; means a date established by the tax incentive agreement that is no more than twenty-five (25) years from the activation date; and (31) &quot;Upgrade&quot; means an investment in an existing facility that results in an increase in the productivity of the facility. Increased productivity shall be measured in relation <br>to the type of products that are required to be produced by that facility to be an <br>eligible project. Effective: July 15, 2010 Page 5 of 5 History: Amended 2010 Ky. Acts ch. 24, sec. 199, effective July 15, 2010; ch. 60, sec. 1, effective July 15, 2010; and ch. 139, sec. 2, effective July 15, 2010. -- Created <br>2007 (2d Extra. Sess.) Ky. Acts ch. 1, sec. 1, effective August 30, 2007. Legislative Research Commission Note (7/15/2010). This section was amended by 2010 Ky. Acts chs. 24, 60, and 139, which do not appear to be in conflict and have <br>been codified together.