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7 LONG TITLE
8 General Description:
9 This bill modifies provisions relating to the High Cost Infrastructure Development Tax
10 Credit.
11 Highlighted Provisions:
12 This bill:
13 ▸ provides that if an infrastructure cost-burdened entity qualifies for a high cost
14 infrastructure tax credit and one or more refundable state tax credits, the
15 infrastructure cost-burdened entity may claim either the high cost infrastructure tax
16 credit or one or more refundable tax credits;
17 ▸ provides that if an infrastructure cost-burdened entity has a high cost infrastructure
18 project located in certain counties and qualifies for a high cost infrastructure tax
19 credit and one or more refundable state tax credits, the infrastructure cost-burdened
20 entity may claim both the high cost infrastructure tax credit or one or more
21 refundable state tax credits;
22 ▸ requires the office to certify certain information on a high cost infrastructure tax
23 credit certificate; and
24 ▸ makes technical changes .
25 Money Appropriated in this Bill:
26 None
27 Other Special Clauses:
28 This bill provides a special effective date.
29 Utah Code Sections Affected:
30 AMENDS:
31 59-7-619, as last amended by Laws of Utah 2016, Third Special Session, Chapter 1
32 59-10-1034, as last amended by Laws of Utah 2016, Third Special Session, Chapter 1
33 63M-4-604, as enacted by Laws of Utah 2015, Chapter 356
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35 Be it enacted by the Legislature of the state of Utah:
36 Section 1. Section 59-7-619 is amended to read:
37 59-7-619. Nonrefundable high cost infrastructure development tax credit.
38 (1) As used in this section:
39 (a) "High cost infrastructure project" means the same as that term is defined in Section
40 63M-4-602.
41 (b) "Infrastructure cost-burdened entity" means the same as that term is defined in
42 Section 63M-4-602.
43 (c) "Infrastructure-related revenue" means the same as that term is defined in Section
44 63M-4-602.
45 (d) "Office" means the Office of Energy Development created in Section 63M-4-401.
46 (2) Subject to the other provisions of this section, a corporation that is an infrastructure
47 cost-burdened entity may claim a nonrefundable tax credit for development of a high cost
48 infrastructure project as provided in this section.
49 (3) The tax credit under this section is the amount listed as the tax credit amount on a
50 tax credit certificate that the office issues under Title 63M, Chapter 4, Part 6, High Cost
51 Infrastructure Development Tax Credit Act, to the infrastructure cost-burdened entity for the
52 taxable year.
53 (4) An infrastructure cost-burdened entity may carry forward a tax credit under this
54 section for a period that does not exceed the next seven taxable years if:
55 (a) the infrastructure cost-burdened entity is allowed to claim a tax credit under this
56 section for a taxable year; and
57 (b) the amount of the tax credit exceeds the infrastructure cost-burdened entity's tax
58 liability under this chapter for that taxable year.
59 (5) (a) Except as provided in Subsection (5)(b), if an infrastructure cost-burdened
60 entity qualifies for a tax credit under this section and one or more refundable tax credits under
61 Part 6, Credits, the infrastructure cost-burdened entity may claim either:
62 (i) the tax credit under this section; or
63 (ii) one or more refundable tax credits under Part 6, Credits.
64 (b) If an infrastructure cost-burdened entity has a high cost infrastructure project
65 located in a county of the third, fourth, fifth, or sixth class, as described in Section 17-50-501,
66 of the state, and qualifies for a tax credit under this section and one or more refundable tax
67 credits under Part 6, Credits, the infrastructure cost-burdened entity may claim:
68 (i) the tax credit under this section; and
69 (ii) one or more refundable tax credits under Part 6, Credits.
70 [
71 Committee shall study the tax credit allowed by this section and make recommendations
72 concerning whether the tax credit should be continued, modified, or repealed.
73 (b) (i) Except as provided in Subsection [
74 required by this Subsection [
75 available to the office, to the Office of the Legislative Fiscal Analyst:
76 (A) the amount of tax credit that the office grants to each infrastructure cost-burdened
77 entity for each taxable year;
78 (B) the infrastructure-related revenue generated by each high cost infrastructure
79 project;
80 (C) the information contained in the office's latest report under Section 63M-4-505;
81 and
82 (D) any other information that the Office of the Legislative Fiscal Analyst requests.
83 (ii) (A) In providing the information described in Subsection [
84 shall redact information that identifies a recipient of a tax credit under this section.
85 (B) If, notwithstanding the redactions made under Subsection [
86 reporting the information described in Subsection [
87 recipient of a tax credit, the office may file a request with the Revenue and Taxation Interim
88 Committee to provide the information described in Subsection [
89 for all infrastructure cost-burdened entities that receive the tax credit under this section.
90 (c) As part of the study required by this Subsection [
91 Legislative Fiscal Analyst shall report to the Revenue and Taxation Interim Committee a
92 summary and analysis of the information provided to the Office of the Legislative Fiscal
93 Analyst by the office under Subsection [
94 (d) The Revenue and Taxation Interim Committee shall ensure that the
95 recommendations described in Subsection [
96 (i) the cost of the tax credit to the state;
97 (ii) the purpose and effectiveness of the tax credit; and
98 (iii) the extent to which the state benefits from the tax credit.
99 Section 2. Section 59-10-1034 is amended to read:
100 59-10-1034. Nonrefundable high cost infrastructure development tax credit.
101 (1) As used in this section:
102 (a) "High cost infrastructure project" means the same as that term is defined in Section
103 63M-4-602.
104 (b) "Infrastructure cost-burdened entity" means the same as that term is defined in
105 Section 63M-4-602.
106 (c) "Infrastructure-related revenue" means the same as that term is defined in Section
107 63M-4-602.
108 (d) "Office" means the Office of Energy Development created in Section 63M-4-401.
109 (2) Subject to the other provisions of this section, a claimant, estate, or trust that is an
110 infrastructure cost-burdened entity may claim a nonrefundable tax credit for development of a
111 high cost infrastructure project as provided in this section.
112 (3) The tax credit under this section is the amount listed as the tax credit amount on a
113 tax credit certificate that the office issues under Title 63M, Chapter 4, Part 6, High Cost
114 Infrastructure Development Tax Credit Act, to the infrastructure cost-burdened entity for the
115 taxable year.
116 (4) An infrastructure cost-burdened entity may carry forward a tax credit under this
117 section for a period that does not exceed the next seven taxable years if:
118 (a) the infrastructure cost-burdened entity is allowed to claim a tax credit under this
119 section for a taxable year; and
120 (b) the amount of the tax credit exceeds the infrastructure cost-burdened entity's tax
121 liability under this chapter for that taxable year.
122 (5) (a) Except as provided in Subsection (5)(b), if an infrastructure cost-burdened
123 entity qualifies for a tax credit under this section and one or more refundable tax credits under
124 Part 11, Refundable Tax Credit Act, the infrastructure cost-burdened entity may claim either:
125 (i) the tax credit under this section; or
126 (ii) one or more refundable tax credits under Part 11, Refundable Tax Credit Act.
127 (b) If an infrastructure cost-burdened entity has a high cost infrastructure project
128 located in a county of the third, fourth, fifth, or sixth class, as described in Section 17-50-501,
129 of the state, and qualifies for a tax credit under this section and one or more refundable tax
130 credits under Part 11, Refundable Tax Credit Act, the infrastructure cost-burdened entity may
131 claim:
132 (i) the tax credit under this section; and
133 (ii) one or more refundable tax credits under Part 11, Refundable Tax Credit Act.
134 [
135 Committee shall study the tax credit allowed by this section and make recommendations
136 concerning whether the tax credit should be continued, modified, or repealed.
137 (b) (i) Except as provided in Subsection [
138 required by this Subsection [
139 available to the office, to the Office of the Legislative Fiscal Analyst:
140 (A) the amount of tax credit that the office grants to each infrastructure cost-burdened
141 entity for each taxable year;
142 (B) the infrastructure-related revenue generated by each high cost infrastructure
143 project;
144 (C) the information contained in the office's latest report under Section 63M-4-505;
145 and
146 (D) any other information that the Office of the Legislative Fiscal Analyst requests.
147 (ii) (A) In providing the information described in Subsection [
148 shall redact information that identifies a recipient of a tax credit under this section.
149 (B) If, notwithstanding the redactions made under Subsection [
150 reporting the information described in Subsection [
151 recipient of a tax credit, the office may file a request with the Revenue and Taxation Interim
152 Committee to provide the information described in Subsection [
153 for all infrastructure cost-burdened entities that receive the tax credit under this section.
154 (c) As part of the study required by this Subsection [
155 Legislative Fiscal Analyst shall report to the Revenue and Taxation Interim Committee a
156 summary and analysis of the information provided to the Office of the Legislative Fiscal
157 Analyst by the office under Subsection [
158 (d) The Revenue and Taxation Interim Committee shall ensure that the
159 recommendations described in Subsection [
160 (i) the cost of the tax credit to the state;
161 (ii) the purpose and effectiveness of the tax credit; and
162 (iii) the extent to which the state benefits from the tax credit.
163 Section 3. Section 63M-4-604 is amended to read:
164 63M-4-604. Tax credit -- Application procedure.
165 (1) An applicant shall provide the office with:
166 (a) an application for a tax credit certificate;
167 (b) documentation that the applicant meets the requirements described in Subsection
168 63M-4-603(1), to the satisfaction of the office, for the taxable year for which the applicant
169 seeks to claim a tax credit; and
170 (c) documentation that expressly directs and authorizes the State Tax Commission to
171 disclose to the office the applicant's returns and other information concerning the applicant that
172 would otherwise be subject to confidentiality under Section 59-1-403 or Section 6103, Internal
173 Revenue Code.
174 (2) (a) The office shall, for an applicant, submit the documentation described in
175 Subsection (1)(c) to the State Tax Commission.
176 (b) Upon receipt of the documentation described in Subsection (1)(c), the State Tax
177 Commission shall provide the office with the documentation described in Subsection (1)(c).
178 (3) If, after the office reviews the documentation from the State Tax Commission
179 under Subsection (2)(b) and the information the applicant submits to the office under Section
180 63M-4-603, the office, in consultation with the Utah Energy Infrastructure Authority Board
181 created in Section 63H-2-202, determines that the applicant is not eligible for the tax credit
182 under Section 63M-4-603, or that the applicant's documentation is inadequate, the office shall:
183 (a) deny the tax credit; or
184 (b) inform the applicant that the documentation supporting the applicant's claim for a
185 tax credit was inadequate and request that the applicant supplement the applicant's
186 documentation.
187 (4) (a) Except as provided in Subsection (5), if, after the office reviews the
188 documentation described in Subsection (2)(b) and the information described in Subsection
189 63M-4-603(6), the office, in consultation with the Utah Energy Infrastructure Authority Board
190 created in Section 63H-2-202, determines that the documentation supporting an applicant's
191 claim for a tax credit adequately demonstrates that the applicant is eligible for the tax credit
192 under Section 63M-4-603, the office shall, on the basis of the documentation:
193 [
194 63M-4-603(3);
195 [
196 the applicant; and
197 [
198 (4)[
199 (b) The office shall certify on the tax credit certificate issued under Subsection
200 (4)(a)(ii) whether the tax credit is subject to the restriction in Subsection 59-7-619(5)(a) or
201 59-10-1034(5)(a).
202 (5) The office may deny an applicant a tax credit based on the recommendation of the
203 Utah Energy Infrastructure Authority Board, as provided in Subsection 63M-4-603(2).
204 (6) An infrastructure cost-burdened entity may not claim a tax credit under Section
205 59-7-619 or 59-10-1034 unless the infrastructure cost-burdened entity receives a tax credit
206 certificate from the office.
207 (7) An infrastructure cost-burdened entity that claims a tax credit shall retain the tax
208 credit certificate in accordance with Subsection 63M-4-603(7).
209 (8) Except for the information that is necessary for the office to disclose in order to
210 make the report described in Section 63M-4-605, the office shall treat a document an applicant
211 or infrastructure cost-burdened entity provides to the office as a protected record under Section
212 63G-2-305.
213 Section 4. Effective date.
214 This bill takes effect for a taxable year beginning on or after January 1, 2019.