Signed by Governor Ernest Fletcher

Vote Smart's Synopsis:

Vote to pass a bill that creates tax incentives for companies investing in creating alternative energy facilities in Kentucky, creates a plan to increase energy-efficiency, and partially forgives the student loans of scientists who remain in the state to work after graduation.

Highlights:

- Requires companies to make minimum investments before qualifying for tax breaks:

-$100 million for companies that primarily use coal -$25 million for companies that primarily use biomass -$1 million for companies investing in renewable energy projects

- Requires that all companies applying for tax credits comply with expected forthcoming federal carbon dioxide standards. - Refunds up to 80 percent of coal severance taxes, 100 percent of sales tax, and 100 percent of income tax paid by the company for eligible projects. - Expands biodiesel, cellulosic ethanol, and ethanol tax credits until 2021. - Requires the Kentucky Economic Development Finance Authority to negotiate and approve all incentives. - Requires the Finance and Administration Cabinet to develop an energy audit training program for state agencies to identify energy saving techniques. Encourages the program to include information on ENERGY STAR products and energy-efficient construction and designs. -Requires the Finance and Administration Cabinet to develop a strategy to replace 50 percent of all state vehicles with energy-efficient models. - Forgives 20 percent of the principle and 100 percent of all accrued interest on Federal Family Education Loan program loans each year for graduates from Kentucky schools who stay in the state to work in an energy-related field. Energy related fields are defined as an engineer, including environmental engineer; engineering technologist, including environmental engineering technologist; chemist; geologist; or hydrologist.

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that creates tax incentives for companies investing in creating alternative energy facilities in Kentucky, creates a plan to increase energy-efficiency, and partially forgives the student loans of scientists who remain in the state to work after graduation.

Highlights:

- Requires companies to make minimum investments before qualifying for tax breaks:

-$100 million for companies that primarily use coal -$25 million for companies that primarily use biomass -$1 million for companies investing in renewable energy projects

- Requires that all companies applying for tax credits comply with expected forthcoming federal carbon dioxide standards. - Refunds up to 80 percent of coal severance taxes, 100 percent of sales tax, and 100 percent of income tax paid by the company for eligible projects. - Expands biodiesel, cellulosic ethanol, and ethanol tax credits until 2021. - Requires the Kentucky Economic Development Finance Authority to negotiate and approve all incentives. - Requires the Finance and Administration Cabinet to develop an energy audit training program for state agencies to identify energy saving techniques. Encourages the program to include information on ENERGY STAR products and energy-efficient construction and designs. -Requires the Finance and Administration Cabinet to develop a strategy to replace 50 percent of all state vehicles with energy-efficient models. - Forgives 20 percent of the principle and 100 percent of all accrued interest on Federal Family Education Loan program loans each year for graduates from Kentucky schools who stay in the state to work in an energy-related field. Energy related fields are defined as an engineer, including environmental engineer; engineering technologist, including environmental engineering technologist; chemist; geologist; or hydrologist.

Full Bill Text