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The Kentucky Department of Revenue is committed to answering your questions and keeping you updated on recent tax law changes made by the Kentucky General Assembly.
Effective January 1, 2020, heavy equipment rental inventory changes allow "qualified heavy equipment" to be taxed at a reduced state rate. This only applies to businesses with NAICS Codes 532310 or 532412. Ad valorem taxes paid on heavy equipment rental inventory is eligible to be included in the inventory tax credit. For a description of what qualified heavy equipment is see KRS 132.010(30).