What is the Recycling and Compost Credit?

If you purchase recycling or composting equipment to be used exclusively in Kentucky for recycling or composting postconsumer waste materials, you are entitled to a credit against your tax equal to 50 percent of the installed cost of the equipment pursuant to KRS 141.390. Application for this credit must be made on Schedule RC, which may be obtained from the Department of Revenue. A copy of Schedule RC and/or Schedule RC (K-1) reflecting the amount of credit approved by the Department of Revenue must be attached to the return.

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