Kentucky > State Incentives
Ethanol Production Tax Credit
Qualified ethanol producers are eligible for an income tax credit of $1.00 per gallon of corn- or cellulosic-based ethanol that meets ASTM specification D4806. The total credit amount available for all corn and cellulosic ethanol producers is $5 million for each fuel type in each taxable year. Unused ethanol credits from one ethanol-based cap, such as corn, may be applied to another ethanol-based cap, such as cellulosic, in the same taxable year. Unused credits may not be carried forward. (Reference Kentucky Revised Statutes 141.422 and 141.4242 to 141.4248)