The Kentucky Enterprise Initiative Act Tax Refund Program Application is used by an approved KEIA project applicant to request a refund of eligible Kentucky sales and use tax paid on qualifying purchases connected with the approved project. The application is designed to identify the business and its KEIA project, establish the amount of refund being requested, provide contact and tax-account information, and confirm that the supporting documentation required for the refund claim is being submitted. The refund generally concerns qualifying Kentucky sales and use tax paid on building and construction materials used in construction of the approved project and/or qualifying equipment used for research and development. A refund request is subject to specific timing and documentation requirements. Only one refund request is permitted for an approved project, and the claim normally must be filed within 60 days after the project is completed or the project’s approved life expires, whichever happens first, although the Kentucky Economic Development Finance Authority may grant a 12-month extension. The application does not cover sales tax paid to other states or local governments, and interest is not paid on an approved refund. The requested refund may also be reduced in certain circumstances, including when compensation was previously taken in connection with payment of the sales or use tax or when the applicant owes a tax liability to the Commonwealth of Kentucky. Supporting materials include the KEDFA approval letter, an Affidavit of Company as to Project Investment, applicable information-sharing agreements, and a final expenditure report. The applicant must also retain project invoices because the Department of Revenue may request some or all of them during its review.
How To File The Kentucky KEIA Tax Refund Application
Complete all identification, location, tax-account, contact, and refund amount fields before preparing the supporting documentation.
A refund claim generally must be submitted within 60 days of either the completion of the project or the expiration of the project’s life, whichever occurs first. KEDFA may grant a 12-month extension. Because only one refund request is permitted for each approved project, the applicant should make sure the claim includes all amounts intended to be requested before it is submitted.
Attach the required supporting documents, including the KEDFA approval letter, the required project-investment affidavit, applicable information-sharing agreements, and the final expenditure report.
Mail the completed application and supporting documentation to:
Kentucky Department of Revenue
Division of Sales and Use Tax
P.O. Box 181
Frankfort, Kentucky 40602-0181
Questions concerning the application may be directed to the Sales and Use Tax Division at (502) 564-5170.
How To Complete The Kentucky KEIA Tax Refund Application Line By Line
Applicant Identification Information
This section connects the refund request to the business and the KEIA project that was previously approved.
Name
Enter the applicant’s name exactly as it appears on the original KEIA application.
Do not use a shortened, informal, or different business name if it does not match the name under which the KEIA project was approved.
KEIA Number
Enter the KEIA number assigned to the approved project.
Check this number carefully because it identifies the specific project associated with the refund request.
Permanent Location
Provide the permanent physical location associated with the applicant or approved project.
Number And Street
Enter the complete street number and street name for the permanent location.
Use a physical address that accurately identifies the location.
City Or Town
Enter the city or town for the permanent address.
State
Enter the applicable state abbreviation.
ZIP Code
Enter the ZIP Code associated with the permanent address.
Mailing Address
Complete this section when the mailing address is different from the permanent location.
If correspondence should be sent to the same address already entered under Permanent Location, this separate address may not need to contain different information.
Number And Street
Enter the street address or other applicable mailing address where correspondence should be sent.
City Or Town
Enter the city or town associated with the mailing address.
State
Enter the appropriate state abbreviation.
ZIP Code
Enter the ZIP Code for the mailing address.
Other Information
This section requests tax-identification and Kentucky sales and use tax account information.
Federal Employer Identification Number
Enter the applicant’s Federal Employer Identification Number.
Use the FEIN belonging to the business identified at the top of the application.
Review the digits carefully before submitting the claim.
Kentucky Sales And Use Account Number
Enter the applicant’s Kentucky Sales and Use Account Number if one applies.
If the applicant does not have an applicable Kentucky sales and use tax account number, follow the form’s indication that this field applies only when relevant.
Contact Information
Provide information for a person who can respond if questions arise during review of the refund application.
Name
Enter the full name of the person who should be contacted about the application.
Choose a contact who is familiar with the project, tax refund request, or supporting records.
Telephone Number
Enter the contact person’s telephone number, including the area code.
E-Mail Address
Enter the contact person’s email address.
Check the spelling carefully so correspondence can reach the correct person.
Refund Requested Amount
Enter the total dollar amount of Kentucky sales and use tax refund being requested.
The amount should be supported by the project records and documentation included with the application.
Do not include taxes paid to other states or local jurisdictions because the refund application is limited to qualifying Kentucky sales and use tax.
Refund Application Requirements
The application contains nine important requirements governing the refund claim.
Requirement 1 – Filing Deadline And One-Claim Limit
File the refund claim within 60 days after project completion or expiration of the project’s life, whichever occurs first.
A 12-month extension may be granted by the Kentucky Economic Development Finance Authority.
Only one refund request may be submitted for each approved project.
Because a second refund request is not permitted for the same approved project, review the entire project before filing and make sure the requested amount includes all qualifying items intended to be claimed.
Requirement 2 – Kentucky Sales And Use Tax Only
Request a refund only for qualifying Kentucky sales and use tax that was actually paid.
Do not include sales tax paid to another state, city, locality, or other jurisdiction.
The refund program does not provide reimbursement for those non-Kentucky tax amounts.
Requirement 3 – Possible Reduction Of The Refund
The refund requested may be reduced when applicable.
A reduction can occur for compensation that was taken when the sales or use tax was paid.
The refund may also be reduced by tax liabilities that the applicant owes to the Commonwealth of Kentucky.
Consider these amounts when reviewing the expected refund.
Requirement 4 – No Interest On The Refund
Do not add interest to the refund request.
Interest is not allowed or paid on refunds claimed through this application.
The requested amount should therefore consist of the eligible tax refund rather than tax plus interest.
Requirement 5 – KEDFA Approval Letter
Attach a copy of the approval letter issued by the Kentucky Economic Development Finance Authority.
This document connects the refund request to the approved KEIA project.
Include it with the application rather than assuming the Department of Revenue already has a copy available for the refund review.
Requirement 6 – Affidavit Of Company As To Project Investment
Attach a copy of the Affidavit of Company as to Project Investment.
A copy of this affidavit must be presented to KEDFA before the refund request is submitted.
Make sure this step has been completed before filing the application.
Requirement 7 – Information-Sharing Agreements
Attach copies of applicable information-sharing agreements with contractors, vendors, or other related parties.
These agreements are used to help verify qualifying costs connected with the approved project, including construction materials, building fixtures, and equipment used for research and development.
Include the relevant agreements needed to substantiate the project costs included in the refund request.
Requirement 8 – Final Expenditure Report And Invoice Retention
Attach the project’s final expenditure report to the refund application.
The Kentucky Department of Revenue may request copies of specific invoices or may request all invoices associated with the project.
Keep copies of the applicable invoices for four years.
Do not discard the supporting purchasing records after submitting the refund request simply because they were not all required as attachments at the time of filing.
Requirement 9 – Mailing The Application
Mail the completed application and all required supporting documentation to:
Kentucky Department of Revenue
Division of Sales and Use Tax
P.O. Box 181
Frankfort, Kentucky 40602-0181
Make sure the application package includes all required attachments before sending it.
Contact Information For Questions
Questions regarding the refund application may be directed to the Kentucky Department of Revenue’s Sales and Use Tax Division.
The telephone number provided is:
(502) 564-5170
Have the applicant’s business information and KEIA project details available when seeking help about a specific refund claim.
Applicant Certification
The certification section must be reviewed carefully before the application is signed.
By signing the application, the authorized person declares under penalties of perjury that the application, together with its accompanying statements, schedules, and reports, has been examined and that the information provided is true, complete, and correct to the best of the signer’s knowledge and belief.
The certification covers information concerning refundable Kentucky sales and use tax paid on qualifying purchases of building and construction materials used in construction of the project and/or qualifying equipment used for research and development.
The signer also confirms that they have authority to sign the application on behalf of the applicant.
In addition, the certification states that the applicant does not owe any tax liability to the Commonwealth of Kentucky.
Review this statement before signing, particularly if there is any question about an outstanding Kentucky tax liability.
Signed
The person authorized to certify the refund application should sign on this line.
The signer should review the entire application and all supporting documentation before providing the signature.
Title
Enter the official business title or position of the person signing the application.
The title should show the capacity in which the individual is authorized to act for the applicant.
Date
Enter the date on which the application is signed.
Use the actual signing date.
Documents To Include With The Refund Application
Before mailing the claim, make sure the filing package contains the documents required for the applicant’s project. These include:
- A copy of the KEDFA approval letter.
- A copy of the Affidavit of Company as to Project Investment.
- Applicable information-sharing agreements with contractors, vendors, or other related parties.
- The final expenditure report.
- Any additional documentation needed to support the requested refund.
Project invoices should also be maintained for four years because the Department of Revenue may request specific invoices or the complete set of invoices during its review.