8 LONG TITLE
9 General Description:
10 This bill modifies provisions relating to the High Cost Infrastructure Tax Credit Act.
11 Highlighted Provisions:
12 This bill:
13 ▸ provides that a high cost infrastructure project includes a hydrogen fuel production
14 or distribution project; and
15 ▸ makes technical changes.
16 Money Appropriated in this Bill:
18 Other Special Clauses:
19 This bill provides retrospective operation.
20 Utah Code Sections Affected:
22 63M-4-602, as last amended by Laws of Utah 2016, Chapter 348
24 Be it enacted by the Legislature of the state of Utah:
25 Section 1. Section 63M-4-602 is amended to read:
26 63M-4-602. Definitions.
27 As used in this part:
28 (1) "Applicant" means a person that conducts business in the state and that applies for a
29 tax credit under this part.
30 (2) "Fuel standard compliance project" means a project designed to retrofit a fuel
31 refinery in order to make the refinery capable of producing fuel that complies with the United
32 States Environmental Protection Agency's Tier 3 gasoline sulfur standard described in 40
33 C.F.R. Sec. 79.54.
34 (3) "High cost infrastructure project" means a project:
35 (a) (i) that expands or creates new industrial, mining, manufacturing, or agriculture
36 activity in the state, not including a retail business; or
37 (ii) that involves new investment of at least $50,000,000 in an existing industrial,
38 mining, manufacturing, or agriculture entity, by the entity;
39 (b) that requires or is directly facilitated by infrastructure construction; and
40 (c) for which the cost of infrastructure construction to the entity creating the project is
41 greater than:
42 (i) 10% of the total cost of the project; or
43 (ii) $10,000,000.
44 (4) "Infrastructure" means:
45 (a) an energy delivery project as defined in Section 63H-2-102;
46 (b) a railroad as defined in Section 54-2-1;
47 (c) a fuel standard compliance project;
48 (d) a road improvement project;
49 (e) a water self-supply project;
50 (f) a water removal system project; [
51 (g) a project that is designed to:
52 (i) increase the capacity for water delivery to a water user in the state; or
53 (ii) increase the capability of an existing water delivery system or related facility to
54 deliver water to a water user in the state[
55 (h) a hydrogen fuel production or distribution project.
56 (5) (a) "Infrastructure cost-burdened entity" means an applicant that enters into an
57 agreement with the office that qualifies the applicant to receive a tax credit as provided in this
59 (b) "Infrastructure cost-burdened entity" includes a pass-through entity taxpayer, as
60 defined in Section 59-10-1402, of a person described in Subsection (5)(a).
61 (6) "Infrastructure-related revenue" means an amount of tax revenue, for an entity
62 creating a high cost infrastructure project, in a taxable year, that is directly attributable to a high
63 cost infrastructure project, under:
64 (a) Title 59, Chapter 7, Corporate Franchise and Income Taxes;
65 (b) Title 59, Chapter 10, Individual Income Tax Act; and
66 (c) Title 59, Chapter 12, Sales and Use Tax Act.
67 (7) "Office" means the Office of Energy Development created in Section 63M-4-401.
68 (8) "Tax credit" means a tax credit under Section 59-7-619 or 59-10-1034.
69 (9) "Tax credit certificate" means a certificate issued by the office to an infrastructure
70 cost-burdened entity that:
71 (a) lists the name of the infrastructure cost-burdened entity;
72 (b) lists the infrastructure cost-burdened entity's taxpayer identification number;
73 (c) lists, for a taxable year, the amount of the tax credit authorized for the infrastructure
74 cost-burdened entity under this part; and
75 (d) includes other information as determined by the office.
76 Section 2. Retrospective operation.
77 This bill has retrospective operation for a taxable year beginning on or after January 1,
Legislative Review Note
Office of Legislative Research and General Counsel