Chief Sponsor: Douglas V. Sagers

Senate Sponsor: Daniel W. Thatcher


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:
17          None
18     Other Special Clauses:
19          This bill provides retrospective operation.
20     Utah Code Sections Affected:
21     AMENDS:
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; [or]
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[.]; or
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
58     part.

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,
78     2018.

Legislative Review Note
Office of Legislative Research and General Counsel