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Kentucky Department for Energy Development and Independence
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Tax Incentives for Homeowners & Businesses

Many tax incentives are available to consumers and businesses to help reduce energy consumption and to install renewable energy systems.  A comprehensive list is maintained by the Database of State Incentives for Renewables and Efficiency (DSIRE), but links to more topic-specific information can be found below.

Database of State Incentives for Renewables and Efficiency

Please contact our office if you still have a question about a specific program or technology.

Incentives for Homeowners
Energy Star new home

Homeowners can receive tax credits for making energy-saving improvements to their home, such as new windows & doors, roofing, insulation, HVAC, water heaters and biomass stoves.

Federal
Home Improvements (ENERGY STAR)
Consumer Incentives (TIAP) 
Alliance to Save Energy 

State
2009 - New Home Tax Credit
House Bill 2 (2008) - Residential Energy Efficiency
Utility Rebate Programs (DSIRE) 

 

Incentives for Renewable Energy
Photovoltaic solar panels on roof

Tax credits are available for solar water heating, solar photovoltaic, small wind turbine systems and geothermal heat pumps.

Federal
On Site Renewables (TIAP) 

State
House Bill 2 (2008) - Solar and Wind

Incentives for Utility-Scale Renewable Energy Systems (see below)

Financing Non-Residential Photovoltaic Projects

Incentives for Fuel Efficient Vehicles

Early Toyota Prius, a hybrid-electric vehicle

 

Tax credits are available for the purchase of new fuel efficient and alternative fuel vehicles.

Federal
fueleconomy.gov
Passenger Vehicles (TIAP) 

Cash for Clunkers

State
none

 

Incentives for Builders & Manufacturers of New Homes
Advanced framing for residential construction

Home builders and producers of manufactured homes are eligible for energy efficient home tax credits.

Federal
Home Builders (ENERGY STAR)

State
House Bill 2 (2008) - New Homes


State Tax Form 8909-K for new ENERGY STAR homes (site built and manufactured) tax credit.

Incentives for Commercial Buildings
e.ON U.S. Center in Louisville

Tax deductions are available for improving the energy efficiency of existing commercial buildings or designing high efficiency into new buildings.

Federal
Commercial Buildings (ENERGY STAR)
Commercial Building Tax Deduction Coalition 
Commercial Lighting Tax Deduction 

State
House Bill 2 (2008) - Commercial Energy Efficiency

Incentives for Industry

The Cabinet for Economic Development has a number of programs to assist companies wanting to locate or expand in the Commonwealth.  We encourage you to contact CED to see what incentives might apply to your business:

Energy Efficiency
Sales Tax Exemption for Manufacturing Facilities (DSIRE)
Federal Incentives for Energy Efficiency (DSIRE)
State Incentives and Resource Programs (U.S. DOE)

Renewable Energy Production
Incentives for Energy Independence Act (PDF 44kB)
Federal Incentives for Renewable Energy (DSIRE)

Alternative Fuels Production
Incentives & Laws for Alternative Fuel Production Facilities

Kentucky Tax Incentives for Biofuels (KRS Chapters 141.422 - 141.430)
   Biodiesel Production and Blending Tax Credit
   Ethanol Production Tax Credit

Contact

Department for Energy Development and Independence
500 Mero Street
12th Floor Capital Plaza Tower
Frankfort, KY 40601
502-564-7192

 

[Archive: Energy Policy Act of 2005]

 
Last Updated 12/30/2009
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