Kentucky businesses can now apply to the state’s renewable chemicals production program, Agriculture Commissioner Dr Ryan Quarles said.
“Agriculture is a very conservation-conscious industry,” said Commissioner Quarles. “Thanks to new laws passed by the General Assembly, the Kentucky Department of Agriculture and other agencies are working together to provide an economic incentive for food companies to seek ways to make new products from diesel or diesel. renewable biodiesel. I am optimistic that the private sector will help pave the way for innovation in this sector.
The program encourages the production of more than 30 specified chemicals derived from biomass feedstocks by providing eligible companies with tax credits for their capital investment, job creation and production of renewable chemicals.
The program will share tax credits previously established for the production of renewable diesel or biodiesel in the Commonwealth. The total amount of the tax credit will be 5 cents per molecular pound of renewable chemicals produced in Kentucky by an eligible business, unless the total amount of credits approved for all taxpayers exceeds the annual cap of 10. million dollars for the program.
Kentucky developed the program to capitalize on its resources and infrastructure and to support the growth of the renewable chemical manufacturing industry. It discusses the unique opportunity to advance the state economy by using biomass raw materials for the production of environmentally friendly products.
For the Renewable Chemicals Production Tax Credit, the bill, which was passed by the Kentucky legislature in 2020, states that qualifying renewable chemicals are limited to base chemicals with a content percentage At least 50 percent biobased, excluding chemicals sold or used in the production of food, feed or fuel.
Program eligibility conditions for renewable chemicals, job creation or investment of new capital related to the production of renewable chemicals, and reporting requirements for eligible businesses are established by 302 KAR 4: 010.
The Kentucky Department of Agriculture will help administer the program, in coordination with the Kentucky Department of Revenue in granting tax credits to eligible companies producing renewable chemicals.
To be eligible for the tax credit for the production of renewable chemicals, a business must:
• Be physically located in Kentucky;
• Operate for profit;
• Organize, develop or locate in this state from July 1, 2020;
• Create new jobs and keep those jobs for at least four years or invest a substantial amount of new capital in the Commonwealth and maintain that capital for at least four years;
• Cannot provide professional services, health care, medical treatment or engage in retail operations and may not move operations from another area of Kentucky or scale down operations to another region state while seeking that incentive.
To learn more about Kentucky’s Renewable Chemicals Program or to request an inquiry, contact Tim Hughes at [email protected].
Complete applications along with the required $ 500 compliance fee must be filed with the Kentucky Department of Agriculture by January 15, 2022.
To learn more about calculating the tax credit rate, visit the Kentucky Department of Revenue’s website.