Kentucky Form 51A900, titled “Application for Electricity Exemption for Commercial Mining of Cryptocurrency,” is used by a qualifying facility to request an exemption from certain Kentucky taxes on electricity purchased for a commercial cryptocurrency mining operation. The application is limited to facilities whose primary activity is the commercial mining of cryptocurrency, and the electricity purchased for that mining operation must exceed 200,000 kilowatt-hours during each qualifying month. An applicant may request an exemption from Kentucky sales and use tax, the Utility Gross Receipts License Tax, or both, depending on the facility’s circumstances. The application collects information about the business, the physical location of the mining facility, its mailing address, business activities, accounting year, electricity metering, school district, Kentucky tax account numbers, electricity suppliers, and monthly electricity costs. The applicant must also provide copies of electricity invoices covering the previous 12 months to demonstrate that the facility meets the electricity-consumption requirement. If the Department approves the application, it will issue an authorization letter for each applicable tax, and the business must provide the appropriate letter to every electricity supplier from which exempt electricity will be purchased. Approval does not allow electricity used for unrelated activities to remain untaxed. When electricity for the mining system is not separately metered, the business must report and pay the applicable tax on electricity used for purposes other than powering the cryptocurrency mining equipment. An approved business must also submit annual reports documenting exempt electricity purchases and confirming that qualifying consumption continues to exceed the required monthly threshold.
Who Should Complete Kentucky Form 51A900?
This application is intended for a facility that:
- Is primarily engaged in commercial cryptocurrency mining.
- Purchases more than 200,000 kilowatt-hours of electricity per month for the commercial mining operation.
- Wants to request a sales and use tax exemption, a UGRLT exemption, or both.
- Can provide invoices documenting electricity purchases for the previous 12 months.
- Is prepared to report and pay tax on electricity that is purchased exempt but used for nonqualifying purposes.
A business that does not meet the monthly electricity threshold should not claim this exemption through the application.
What Taxes Can Be Included In The Application?
The application provides two tax options.
Sales And Use Tax
Check this box when applying for an exemption from Kentucky sales and use tax on qualifying electricity used in the commercial cryptocurrency mining operation.
Utility Gross Receipts License Tax
Check the UGRLT box when applying for an exemption from the Utility Gross Receipts License Tax on qualifying electricity purchases.
Applying For Both Taxes
Check both boxes when the facility is applying for both exemptions.
Complete all account-number and questionnaire fields that apply to each requested tax.
Information Needed Before Completing The Application
Gather the following information:
- The business’s exact legal name.
- A current telephone number.
- The complete physical address of the qualifying facility.
- The business’s mailing address, when different from the facility address.
- A current email address.
- An accurate description of the business activity at the facility.
- The business’s accounting-year information.
- Information about how electricity for the mining equipment is metered.
- The school district in which the facility is located, when requesting a UGRLT exemption.
- The business’s UGRLT number, when applicable.
- The Kentucky sales and use tax permit account number.
- The Kentucky corporation income tax number.
- The names and addresses of all electricity suppliers.
- The cost of electricity purchased from each supplier.
- Copies of electricity invoices for the previous 12 months.
- The name and title of an authorized signer.
How To Complete Kentucky Form 51A900 Line By Line
Form Identification And Qualification Notice
Form Number: 51A900
The number 51A900 identifies the application.
No information needs to be entered beside the form number.
Revision Code: 9-21
The revision code identifies the version of the application.
It is not the application date, reporting period, approval date, or tax year.
Commonwealth Of Kentucky
This identifies Kentucky as the government jurisdiction issuing the application.
No entry is required.
Department Of Revenue
This identifies the Kentucky Department of Revenue as the agency that reviews and processes the application.
No entry is required.
Application For Electricity Exemption For Commercial Mining Of Cryptocurrency
This is the title of the application.
It confirms that the requested exemption relates specifically to electricity used in a qualifying commercial cryptocurrency mining operation.
Facility Qualification Statement
The application is only for a facility primarily engaged in the commercial mining of cryptocurrency.
Before completing the application, confirm that cryptocurrency mining is the facility’s primary business activity rather than a secondary or incidental operation.
Monthly Electricity Requirement
Electricity purchased for the commercial mining operation must exceed 200,000 kilowatt-hours per month.
The threshold applies to electricity used for the qualifying mining operation. Attach invoices that demonstrate the required monthly consumption.
Tax Exemption Selection
Sales And Use Tax Checkbox
Check the “Sales & Use Tax” box when requesting an exemption from sales and use tax on qualifying electricity purchases.
Leave it unchecked when the application does not cover this tax.
UGRLT Checkbox
Check the “Utility Gross Receipts License Tax” box when requesting a UGRLT exemption.
Leave it unchecked when the facility is not applying for this exemption.
Selecting Both Options
Check both boxes when requesting both exemptions.
The Department may issue a separate authorization letter for each applicable tax.
Business Information
Name Of Business
Enter the exact legal name of the business applying for the exemption.
The name should match the business’s Kentucky registration and tax-account records.
Do not enter only a trade name, shortened name, or informal operating name unless it is the business’s official registered name.
Telephone Number
Enter the business’s current telephone number.
Include the area code and use a number where someone familiar with the application can be reached.
The form visually separates the number into two parts, so enter it according to the printed layout.
Location Of Facility
The exemption authorization is site-specific. This means it applies to the facility address entered in this section rather than automatically applying to every location operated by the business.
Number And Street
Enter the complete street address of the cryptocurrency mining facility.
Include:
- Street number.
- Street name.
- Building or unit number, when applicable.
Do not enter only a post office box because this section must identify the physical location of the qualifying facility.
City
Enter the city where the facility is physically located.
County
Enter the Kentucky county in which the facility is located.
Make sure the county corresponds with the physical facility address.
State
Enter the state abbreviation for the facility location.
ZIP Code
Enter the complete ZIP code associated with the facility’s physical address.
Mailing Address
Complete this section only when the mailing address is different from the facility location.
P.O. Box Or Number And Street
Enter the mailing address where the business receives official correspondence.
You may enter:
- A post office box; or
- A street number and street name.
Include a suite, unit, route, or other delivery detail when necessary.
City
Enter the city associated with the mailing address.
County
Enter the county associated with the mailing address when applicable.
State
Enter the appropriate two-letter state abbreviation.
ZIP Code
Enter the complete mailing ZIP code.
When the mailing address is the same as the facility address, this section may be left blank unless the Department instructs otherwise.
E-Mail Address
Enter a current business email address.
Use an address that is regularly monitored by someone who can respond to questions about:
- The exemption application.
- Electricity purchases.
- Tax account numbers.
- Supplier information.
- Annual reporting obligations.
Review the email address carefully before filing.
Nature Of Business At This Location
Provide an accurate description of the business activity conducted at the facility.
The description should make clear that the location is primarily engaged in commercial cryptocurrency mining.
Avoid vague descriptions such as:
- Technology.
- Computing.
- Business services.
- Digital operations.
- Data activities.
A clearer description might explain that the facility operates commercial computing equipment used primarily to mine cryptocurrency.
Do not describe activities that are not actually conducted at the site.
Questionnaire
The questionnaire contains three numbered items.
Answer each applicable question completely.
Question 1: Calendar-Year Accounting
Indicate whether the business keeps its books on a calendar-year basis.
Yes
Check “Yes” when the business’s accounting year runs from January 1 through December 31.
No
Check “No” when the business uses a fiscal year that ends on a date other than December 31.
Do not check both boxes.
Fiscal-Year Ending Month
When Question 1 is answered “No,” enter the month in which the business’s fiscal year ends.
For example, enter “June” when the fiscal year ends on June 30.
Fiscal-Year Ending Day
Enter the day of the month on which the fiscal year ends.
The month and day together should identify the business’s fiscal-year closing date.
Leave the fiscal-year ending fields blank when the business answered “Yes” to the calendar-year question.
Question 2: Separate Electricity Meter
Indicate whether the electricity used by the cryptocurrency computing system is separately metered.
Yes
Check “Yes” when a separate meter measures the electricity consumed by the qualifying cryptocurrency mining computing system.
A separate meter helps distinguish qualifying electricity from electricity used elsewhere at the facility.
No
Check “No” when the mining system shares a meter with other equipment, offices, lighting, cooling systems, or nonqualifying activities.
Do not check both boxes.
Requirement When Electricity Is Not Separately Metered
When the answer is “No,” the business must apply for a Consumer’s Use Tax account, a UGRLT account, or both, as applicable.
These accounts are needed so the business can report and pay tax on electricity that:
- Was purchased under the exemption; but
- Was not consumed in the cryptocurrency mining process.
The application directs businesses to Kentucky’s One Stop business-account system to apply for the necessary accounts.
Question 3: Facility School District
Complete this question when requesting a UGRLT exemption.
Enter the full name of the school district in which the qualifying facility is physically located.
Do not enter:
- The school district of the mailing address when it differs from the facility.
- The nearest school.
- The county name unless it is also the correct district name.
- The utility supplier’s district.
Confirm the correct district before submitting the application.
When the application does not include a UGRLT exemption request, this question may not apply.
Identification Numbers
Enter the Kentucky tax account numbers associated with the applicant.
Check each number carefully before filing.
UGRLT Number
Enter the business’s Utility Gross Receipts License Tax number.
Complete this field when the business has a UGRLT account or when it is relevant to the requested exemption.
Do not enter the sales and use tax account number in this space.
Sales And Use Tax Permit Account Number
Enter the business’s Kentucky sales and use tax permit account number.
Use the number associated with the business named at the top of the application.
Do not enter a federal identification number in this field.
Kentucky Corporation Income Tax Number
Enter the business’s Kentucky corporation income tax number.
Complete this line when it applies to the applicant.
Do not substitute an unrelated state or federal account number.
Supplier Detail
This section identifies the electricity providers and documents the cost of qualifying electricity purchases.
Attach invoices showing electricity purchases exceeding 200,000 kilowatt-hours per month.
The instructions require invoices covering electricity used in cryptocurrency mining at the facility during the previous 12 months.
Name Of Supplier
Enter the full name of the electricity provider.
Use one row for each supplier.
When the facility purchases electricity from more than one provider, list each supplier separately.
Address Of Supplier
Enter the electricity supplier’s complete address.
Use the address shown on the supplier’s invoice or account statement.
Include:
- Street address or post office box.
- City.
- State.
- ZIP code.
Cost Of Electricity
Enter the cost of electricity purchased from the supplier.
The amount should be supported by the attached invoices.
Use the rows consistently. Do not combine unrelated suppliers into one entry without clearly identifying each one.
Additional Supplier Rows
Continue listing suppliers and costs in the available rows.
Leave unused rows blank.
When the number of suppliers exceeds the available space, contact the Department for guidance or attach a clear continuation schedule containing the same information.
Total Amount
Add all electricity costs entered in the supplier-detail section.
Enter the combined amount on the “Total Amount” line.
Make sure the total agrees with the attached invoices.
The total amount is the cost of electricity, not the total number of kilowatt-hours.
Required Invoice Documentation
Include copies of invoices for all electricity purchases used in cryptocurrency mining at the facility during the previous 12 months.
The invoices should document:
- The electricity supplier.
- The service address.
- The billing period.
- The amount of electricity purchased.
- The cost of the electricity.
- Monthly consumption exceeding 200,000 kilowatt-hours for the qualifying mining operation.
Submit copies rather than the business’s only original records.
Keep a complete set of invoices with the business’s tax records.
Certification Statement
The certification confirms that the information in the application is correct to the best of the signer’s knowledge and belief.
It also confirms that the signer is authorized to submit the application for the business.
By signing, the applicant agrees to report and pay the applicable sales and use tax, UGRLT, or both on electricity that:
- Was purchased exempt; and
- Was not consumed in the cryptocurrency mining process at the qualifying facility.
Review all information and attachments before signing.
Signature
An individual authorized to act for the business must sign the application.
The signer should have enough authority to certify the application and accept its tax-reporting obligations on behalf of the business.
An unsigned application may be considered incomplete.
Title
Enter the signer’s official business title.
Examples may include:
- Owner.
- President.
- Managing Member.
- Partner.
- Chief Financial Officer.
- Tax Director.
- Authorized Corporate Officer.
The title should accurately show the signer’s relationship to the applicant.
Name In Print
Print or type the authorized signer’s full legal name.
The printed name should identify the person whose signature appears above.
Do not enter only the business name in this field.
Date
Enter the date on which the authorized individual signs the application.
Use a clear month/day/year format.
The Department uses the date it receives the application—not merely the date written here—to establish the effective date of an approved exemption.
How To File Kentucky Form 51A900
Review The Application
Before mailing, confirm that:
- At least one tax-exemption box is checked.
- The exact business name is entered.
- The telephone number is complete.
- The qualifying facility’s physical address is provided.
- The mailing address is included when different.
- The email address is correct.
- The business activity is described accurately.
- All questionnaire items are answered.
- The school district is entered when requesting a UGRLT exemption.
- Applicable tax account numbers are provided.
- Every electricity supplier is listed.
- Electricity costs are entered and totaled.
- The previous 12 months of invoices are attached.
- The application is signed and dated.
Mailing Address
Mail the completed application and supporting invoices to:
Kentucky Department of Revenue
Division of Sales and Use Tax
P.O. Box 1303
Frankfort, KY 40602-1303
The application provides mailing instructions but does not provide a fax or email filing option.
What Happens If The Application Is Approved?
Effective Date Of The Exemption
The effective date is the date on which the Department receives the application.
The signature date does not control the exemption’s effective date unless it is also the Department’s receipt date.
Keep proof showing when the application was mailed or delivered.
Authorization Letters
The Department will send an authorization letter for each applicable tax.
A business approved for both sales and use tax and UGRLT exemptions may receive separate authorization documentation for each tax.
Providing Letters To Electricity Suppliers
Send a copy of the applicable authorization letter to each electricity provider.
The supplier must retain the letter in its records as support for electricity sales made without collecting the applicable tax.
Do not begin treating purchases as exempt solely because the application has been submitted. Follow the authorization issued by the Department.
Qualifying Exempt Electricity Purchases
After approval, electricity used for the commercial cryptocurrency mining operation at the qualifying facility may be purchased without paying:
- Sales and use tax; and
- UGRLT, when that exemption also applies.
The exemption is limited to qualifying electricity and the authorized facility.
Electricity Used For Other Purposes
Electricity used for non-mining purposes is not covered merely because it is purchased through the same facility account.
Examples of potentially separate uses may include electricity consumed for activities outside the qualifying commercial mining process.
When all facility electricity is purchased exempt but the mining system is not separately metered, the business must calculate, report, and pay the applicable taxes on the nonqualifying portion.
Annual Reporting Requirement
An approved business must submit an annual report to the Kentucky Department of Revenue.
The annual report must detail the amount of applicable tax exempted from the business’s electricity purchases.
Invoices Required With The Annual Report
Include all applicable invoices with the annual report.
The invoices must document:
- Monthly electricity purchases.
- Purchase amounts.
- Electricity consumption within the mining process.
- Monthly qualifying usage exceeding 200,000 kilowatt-hours.
Annual Report Due Date
Unless the authorization letter provides a different deadline, the annual report is due by November 1 each year.
Annual Reporting Period
The annual report covers the previous fiscal year.
For this requirement, the reporting period consists of the July through June billing periods.
For example, a report due November 1 would generally cover the preceding July-through-June period, unless the authorization letter directs otherwise.
Common Form 51A900 Mistakes To Avoid
Applying For A Nonqualifying Facility
Do not use the application when commercial cryptocurrency mining is not the facility’s primary activity.
Failing To Meet The Electricity Threshold
The qualifying mining operation must purchase more than 200,000 kilowatt-hours per month.
Do not rely only on an annual average when the monthly invoices do not support the requirement.
Forgetting To Select A Tax
Check sales and use tax, UGRLT, or both.
Leaving both boxes blank makes the requested exemption unclear.
Listing A Mailing Address As The Facility Location
The authorization is site-specific.
Enter the physical mining-facility address in the location section.
Giving A Vague Business Description
Clearly describe the commercial cryptocurrency mining activity conducted at the facility.
Leaving The Fiscal-Year Date Blank After Selecting No
When the business does not use a calendar year, enter its fiscal-year ending month and day.
Ignoring The Separate-Meter Question
Answer whether the mining computing system has a separate electricity meter.
This information affects the business’s obligation to report tax on nonqualifying electricity.
Omitting The School District
Enter the facility’s school district when requesting a UGRLT exemption.
Mixing Tax Account Numbers
Enter each account number on its designated line.
Do not place the FEIN or another unrelated number in the state tax-account fields.
Failing To Attach 12 Months Of Invoices
The application requires copies of invoices covering electricity purchases used in mining during the previous 12 months.
Attaching Invoices That Do Not Show Qualifying Consumption
The documentation should support monthly purchases exceeding 200,000 kilowatt-hours for the qualifying operation.
Reporting Kilowatt-Hours As The Electricity Cost
The supplier table requests the cost of electricity.
The invoices should separately support the consumption requirement.
Forgetting To Total Supplier Costs
Add all supplier amounts and enter the result on the total line.
Leaving The Certification Unsigned
An authorized person must sign and date the application.
Treating All Facility Electricity As Permanently Exempt
Electricity not consumed in the cryptocurrency mining process remains subject to the applicable tax.
Failing To Give Authorization Letters To Suppliers
Each electricity provider must receive and retain the appropriate authorization letter.
Missing The Annual Report
Approved businesses must report annually unless the authorization letter provides different instructions.
Final Form 51A900 Checklist
Before submitting the application, confirm that you have:
- Verified that the facility primarily conducts commercial cryptocurrency mining.
- Confirmed that qualifying electricity purchases exceed 200,000 kilowatt-hours per month.
- Selected sales and use tax, UGRLT, or both.
- Entered the exact legal business name.
- Provided a complete telephone number.
- Entered the qualifying facility’s physical address.
- Confirmed that the address matches the site requesting authorization.
- Added a different mailing address when applicable.
- Entered a current email address.
- Clearly described the business activity at the location.
- Answered the calendar-year accounting question.
- Entered the fiscal-year ending month and day when required.
- Answered the separate-meter question.
- Planned to obtain the necessary tax accounts when electricity is not separately metered.
- Entered the facility’s school district when requesting a UGRLT exemption.
- Added the applicable UGRLT number.
- Entered the sales and use tax permit account number.
- Entered the Kentucky corporation income tax number.
- Listed every electricity supplier.
- Entered each supplier’s address.
- Entered the supported cost of electricity.
- Calculated the total supplier amount.
- Attached electricity invoices for the previous 12 months.
- Confirmed that the invoices document qualifying monthly consumption.
- Reviewed the certification agreement.
- Obtained an authorized signature.
- Entered the signer’s title.
- Printed the signer’s full name.
- Added the signature date.
- Made a copy of the complete application and all attachments.
- Mailed the package to the Division of Sales and Use Tax.
- Prepared to provide approval letters to each electricity supplier.
- Prepared to report and pay tax on nonqualifying electricity use.
- Recorded the annual reporting requirement and November 1 deadline.