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an energy–efficient interior lighting system that meets the

Caution: An approved company under the Environmental

Stewardship Act shall not be entitled to the recycling credit

maximum reduction in lighting power density requirements

provided under the provisions of KRS 141.390 for equipment

for the federal energy–efficient commercial building deduction

used in the production of an environmental stewardship

under 26 U.S.C. § 179D, as it existed on December 31, 2007.

project.

The total credit is limited to $500.

Clean Coal Incentive Tax Credit—Effective for tax years

(v) For commercial property, 30% of the installed cost of an

energy–efficient heating, cooling, ventilation, or hot water

ending on or after December 31, 2006, a nonrefundable,

nontransferable credit against taxes imposed by KRS 136.120,

system that meets the requirements for the federal energy–

efficient commercial building deduction under 26 U.S.C. §

KRS 141.020, KRS 141.040 or KRS 141.0401 shall be allowed

for a clean coal facility. As provided by KRS 141.428, a clean

179D, as it existed on December 31, 2007. The total credit is

coal facility means an electric generation facility beginning

limited to $500. KRS 141.436

commercial operation on or after January 1, 2005, at a cost

greater than $150 million that is located in the Commonwealth

ENERGY STAR Home or ENERGY STAR Manufactured Home

of Kentucky and is certified by the Energy and Environment

Tax Credit—A nonrefundable tax credit against the tax

Cabinet as reducing emissions of pollutants released during

imposed under KRS 141.040, and KRS 141.0401 is allowed if

a taxpayer builds a new ENERGY STAR home located in the

generation of electricity through the use of clean coal

equipment and technologies. The amount of the credit shall be

Commonwealth for use as a principal place of residence, or

sells a new ENERGY STAR manufactured home to a buyer

$2 per ton of eligible coal purchased that is used to generate

electric power at a certified clean coal facility, except that no

who uses that home as a principal place of residence in the

credit shall be allowed if the eligible coal has been used to

Commonwealth. The tax credit shall equal: (a) $800 if the

generate a credit under KRS 141.0405 for the taxpayer, parent

taxpayer builds an ENERGY STAR home; or (b) $400 if the

or subsidiary. KRS 141.428

taxpayer sells an ENERGY STAR manufactured home. The

tax credit shall not apply if the tax credit has been previously

Ethanol Tax Credit—Producers of ethanol are entitled to a tax

taken by another taxpayer on the same ENERGY STAR home or

ENERGY STAR manufactured home, or the taxpayer has taken

credit against the taxes imposed by KRS 141.020, KRS 141.040

and KRS 141.0401. The taxpayer must file a claim for ethanol

the energy efficiency products tax credit. KRS 141.437

credit with the Department of Revenue by January 15 each

year for ethanol produced in the previous calendar year. The

Railroad Maintenance and Improvement Tax Credit—For tax

department shall issue a credit certification (Schedule ETH)

years beginning on or after January 1, 2010, an owner of any

to the taxpayer by April 15. The credit certification must be

Class II railroad or Class III railroad located in Kentucky or

attached to the tax return claiming this credit. KRS 141.4242

any person who transports property using the rail facilities

and 103 KAR 15:110

of a Class II railroad or Class III railroad located in Kentucky

or furnishes railroad–related property or services to a Class

Cellulosic Ethanol Tax Credit—Producers of cellulosic ethanol

II railroad or Class III railroad located in Kentucky, but only

are entitled to a tax credit against the taxes imposed by KRS

with respect to miles of railroad track assigned to the person

141.020, KRS 141.040 and KRS 141.0401. The taxpayer must

by a Class II railroad or Class III railroad, shall be entitled to a

file a claim for ethanol credit with the Department of Revenue

nonrefundable credit against taxes imposed by KRS 141.020 or

by January 15 each year for cellulosic ethanol produced in the

141.040 and KRS 141.0401 in an amount equal to fifty percent

previous calendar year. The department shall issue a credit

of the qualified expenditures paid or incurred to maintain or

certification (Schedule CELL) to the taxpayer by April 15. The

improve railroads located in Kentucky, including roadbeds,

credit certification must be attached to the tax return claiming

bridges, and related structures, that are owned or leased as of

this credit. KRS 141.4244 and 103 KAR 15:120

January 1, 2008, by a Class II or Class III railroad.

Energy Efficiency Products Tax Credit—A nonrefundable tax

The credit allowed shall not exceed the product of $3,500

credit against the tax imposed under KRS 141.020 or 141.040

multiplied by the sum of: (i) The number of miles of railroad

and KRS 141.0401 is allowed as follows:

track in Kentucky owned or leased by the eligible taxpayer as

of the close of the taxable year; and (ii) The number of miles of

(i) For a taxpayer’s residence or single–family or multifamily

railroad track in Kentucky assigned to the eligible taxpayer by

residential rental unit, 30% of the installed cost of qualified

a Class II railroad or Class III railroad which owns or leases the

insulation, qualified energy–efficient windows and storm

railroad track as of the close of the taxable year. KRS 141.385

doors, and qualified energy proper t y that meets the

performance, quality, and certification standards of and that

Railroad Expansion Tax Credit—For tax years beginning on or

would have been eligible for the federal credit for residential

after January 1, 2010: (a) a corporation that owns fossil energy

property expenditures under 26 U.S.C. § 25C, as it existed on

resources subject to tax under KRS 143.020 or 143A.020 or

December 31, 2007. The total credit is limited to $500.

biomass resources and transports these resources using rail

facilities; or (b) a railway company subject to tax under KRS

(ii) For a taxpayer’s residence or single–family residential rental

136.120 that serves a corporation that owns fossil energy

unit, 30% of the installed cost of an active solar space–heating

resources subject to tax under KRS 143.020 or 143A.020 or

system, passive solar space–heating system, combined

biomass resources shall be entitled to a nonrefundable tax

active solar space–heating and water–heating system, solar

credit against taxes imposed under KRS 141.040 and 141.0401

water–heating system, and wind turbine or wind machine, or

equal to twenty–five percent of the expenditures paid or

$3 per watt of direct current of a solar photovoltaic system.

incurred by the corporation or railway company to expand or

The total credit is limited to $500.

upgrade railroad track, including roadbeds, bridges, and related

track structures, to accommodate the transport of fossil energy

(iii) For a multifamily residential rental unit or commercial

resources or biomass resources.

property, 30% of the installed cost of an active solar space–

heating system, passive solar space–heating system, combined

The credit amount approved for a calendar year for all

active solar space–heating and water–heating system, solar

taxpayers under KRS 141.386 shall be limited to $1 million.

water–heating system, and wind turbine or wind machine, or

If the total amount of approved credit exceeds $1 million,

$3 per watt of direct current of a solar photovoltaic system.

the department shall determine the amount of credit each

The total credit is limited to $1,000.

corporation and railroad company receives by multiplying $1

million by a fraction, the numerator of which is the amount

(iv) For commercial property, 30% of the installed cost of

of approved credit for a corporation or railway company and

Instructions For Form 725 - Kentucky Single Member Llc Individually Owned Llet Return - 2011 Page 11

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