Green Building Tax Credits in Kentucky
The Green Resource Council of the National Association of Realtors describes green building practices as those that are energy efficient and use less energy than conventional homes, buildings and offices. According to the Council, approximately two-thirds of homeowners are interested in buying green homes. Green homes use sustainable materials which have less of an environmental or health impact on their surroundings. The State of Kentucky offers corporate and personal tax credits to residents to stimulate green building activities.
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Corporate Tax Credits
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The Kentucky Energy Efficiency Tax Credits program provides a tax incentive for corporations of up to 30 percent of the cost of the installation of energy efficient interior lighting systems, hot water systems; or heating, ventilation, air conditioning and cooling systems. The tax credit is deducted from corporate income. The maximum tax credit is $1,000.
Personal Tax Credits
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Kentucky residents can also claim energy efficiency tax credits. Similar to the corporate tax credit program, the tax incentive covers up to 30 percent of the cost of installation of energy efficient measures. Eligible measures include energy efficient boilers, central air conditioners, doors, furnaces, heat pumps, insulation, lighting, water heaters and windows. Resident's must use the tax credit to cover energy efficient measures completed for their primary residence or for a residential rental property. The maximum amount of tax credit for all improvements is $500.
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Sale of Energy Efficient Home
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As an alternative, a resident of Kentucky can claim a tax credit of up to $800 for building an energy efficient home that is his primary residence. A resident or corporation can claim a maximum tax credit of $400 for the sale of an energy efficient manufactured home; while those who sell an Energy Star home can claim up to $800 in tax credits. Taxpayers who claim this credit cannot claim the personal or corporate energy efficient tax credits.
Application
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To apply for funding, residents or corporations must complete the Kentucky Energy Efficiency Products Tax Credit form and qualify for the tax credit. Applicants must indicate the date that the energy efficient measures were completed, describe the installation of energy efficient products, and indicate whether the installation was for a single family dwelling, rental unit, commercial property or multi-family dwelling.
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References
- Green Resource Council of the National Association of Realtors: What is Green Building
- Database of State Incentives for Renewables & Efficiency: Kentuck Energy Efficiency Tax Credits (Corporate)
- Database of State Incentives for Renewables & Efficiency: Kentucky Energy Efficiency Tax Credits (Personal)
- Kentucky Department of Revenue: KENTUCKY Energy Efficiency Products Tax Credit
Resources
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