Form 40a727 - Income Tax Forms Requisition (Page 3 of 6) in pdf

N N N N N o o o o o v v v v v ember 2007

ember 2007

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HB 1 created KRS 141.422 to 141.425 to provide that

Dec. 31, 2007. Qualified businesses in the Hopkinsville

an ethanol producer or cellulosic ethanol producer shall

enterprise zone will no longer be able to buy machinery

be eligible for a $1 per gallon nonrefundable tax credit

and equipment exempt from sales and use tax beginning

against taxes imposed by KRS 141.020 or 141.040 and

Jan. 1, 2008. Likewise, building materials purchased for

141.0401 for each ethanol gallon or cellulosic ethanol

installation in the Hopkinsville zone will be taxable as

gallon produced. Ethanol means ethyl alcohol produced

of Jan. 1, 2008.

from corn, soybeans or wheat for use as a motor fuel

that meets the current American Society for Testing and

While the enterprise zones have now expired, be aware

Materials specifications D4806 for ethanol. Cellulosic

that the Kentucky Enterprise Initiative Act (KEIA),

ethanol means ethyl alcohol for use as motor fuel that

effective Jan. 1, 2006, created a new section of KRS

meets the current American Society for Testing and

Chapter 154 to provide a statewide tax incentive program

Materials specification D4806 for ethanol that is

that gives a minimum investment preference to

produced from cellulosic biomass materials of any

companies in previously existing enterprise zones. KEIA

lignocellulosic or hemicellulosic matter that is available

applications or further assistance about the program may

on a renewable or recurring basis, including: (a) plant

be obtained from the Kentucky Economic Development

wastes from industrial processes such as sawdust and

Finance Authority at , or by calling

paper pulp; (b) energy crops grown specifically for fuel

(502) 564-4554.

production such as switchgrass; or (c) agriculture plant

residues such as corn stover, rice hulls, sugarcane and

Employers Encouraged to Release Forms W-2/

cereal straws. The annual ethanol tax credit cap is $5

K-2 Early

million and the annual cellulosic ethanol credit cap is

$5 million, unless the annual cap for either ethanol or

In an effort to speed the issuance of individual income

for cellulosic ethanol is not used, then the unused cap

tax refunds, employers are encouraged to release

may be transferred to the other program. The ethanol

Employee’s Wage and Tax Statements, Forms W-2/K-

incentives created by HB 1 are effective for taxable years

2, at the earliest possible date. This allows taxpayers to

beginning after Dec. 31, 2007.

file their income tax returns earlier, thereby avoiding

backlogs and delay of refunds. Fewer returns are filed at

The act also established a student forgiveness program

the beginning of the tax season than near the April 15

for individuals who receive a bachelor’s degree or

deadline. By increasing the number of tax returns filed

graduate degree from a Kentucky college or university

early, refunds can be processed more efficiently.

after the effective date of this act and who are employed

in an energy-related field such as engineering,

DOR Offices Closed for Holidays

engineering technology, chemistry, geology or hydrology

in Kentucky. The loan forgiveness program shall be

Pursuant to KRS 18A.190, all DOR offices will be closed

funded by the commonwealth using state appropriations

Thursday and Friday, Nov. 22 and 23, in observance of

and shall be administered by the Kentucky Higher

Thanksgiving; Monday and Tuesday, Dec. 24 and 25, in

Education Student Loan Corporation. To the extent that

observance of Christmas; and Monday and Tuesday, Dec.

funds are available, the corporation shall provide eligible

31 and Jan. 1, in observance of New Year’s Day. Normal

individuals forgiveness of loans within the Federal

hours will resume on Wednesday, Jan. 2, 2007.

Family Education Loan Program held by the corporation

up to a maximum of 20 percent of the loan principal

balance and accrued interest.

Enterprise Zone Update

Effective Dec. 31, 2007, the last active enterprise zone

will expire. The Hopkinsville enterprise zone will expire

Form 40a727 - Income Tax Forms Requisition Page 3

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