Bill > HB545

This bill establishes a new nonrefundable income tax credit for producers of alternative jet fuel, which is a liquid fuel that can be used in aircraft without engine modifications and meets specific environmental standards, including a significant reduction in greenhouse gas emissions compared to traditional jet fuel. The credit, which is available for taxable years beginning in 2029 and ending in 2035, offers varying rates per gallon depending on whether the fuel is agriculturally based and if the eligible feedstock, which can include crops and agricultural byproducts, was produced within the Commonwealth. The bill also sets limits on the total credit amount an individual taxpayer can receive and an aggregate annual limit for all taxpayers, with provisions for pro rata apportionment if the aggregate limit is exceeded. To implement this credit, the Department of Revenue, in conjunction with the Department of Agriculture and the Energy and Environment Cabinet, will develop administrative regulations to define procedures, verification standards, and reporting requirements. The Department of Revenue will also report annually to the Legislative Research Commission on the credit's utilization, and this bill amends existing law to ensure the alternative jet fuel producer credit is ordered correctly among other tax credits and allows the Department of Revenue to share information about this credit with the Legislative Research Commission.

Budget and Finance

https://apps.legislature.ky.gov/record/26RS/hb545.html