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7 LONG TITLE
8 General Description:
9 This bill modifies definitions related to qualification for a high cost infrastructure
10 development tax credit.
11 Highlighted Provisions:
12 This bill:
13 ▸ modifies the definitions of "high cost infrastructure project" and "infrastructure" for
14 purposes of qualifying for a high cost infrastructure tax development tax credit.
15 Money Appropriated in this Bill:
16 None
17 Other Special Clauses:
18 This bill provides retrospective operation.
19 Utah Code Sections Affected:
20 AMENDS:
21 79-6-602, as renumbered and amended by Laws of Utah 2021, Chapter 280
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23 Be it enacted by the Legislature of the state of Utah:
24 Section 1. Section 79-6-602 is amended to read:
25 79-6-602. Definitions.
26 As used in this part:
27 (1) "Applicant" means a person that conducts business in the state and that applies for a
28 tax credit under this part.
29 (2) "Fuel standard compliance project" means a project designed to retrofit a fuel
30 refinery in order to make the refinery capable of producing fuel that complies with the United
31 States Environmental Protection Agency's Tier 3 gasoline sulfur standard described in 40
32 C.F.R. Sec. 79.54.
33 (3) "High cost infrastructure project" means a project:
34 (a) (i) that expands or creates new industrial, mining, manufacturing, or agriculture
35 activity in the state, not including a retail business;
36 (ii) that involves new investment of at least $50,000,000 in an existing industrial,
37 mining, manufacturing, or agriculture entity, by the entity; or
38 (iii) for the construction of a plant, a pipeline, or other facility, including a fueling
39 station, for the storage, production, or distribution of hydrogen fuel produced using renewable
40 energy, as defined in Section 54-17-601, and used for transportation, electricity generation, or
41 industrial use;
42 (b) that requires or is directly facilitated by infrastructure construction; and
43 (c) for which the cost of infrastructure construction to the entity creating the project is
44 greater than:
45 (i) 10% of the total cost of the project; or
46 (ii) $10,000,000.
47 (4) "Infrastructure" means:
48 (a) an energy delivery project as defined in Section 63H-2-102;
49 (b) a railroad as defined in Section 54-2-1;
50 (c) a fuel standard compliance project;
51 (d) a road improvement project;
52 (e) a water self-supply project;
53 (f) a water removal system project;
54 (g) a solution-mined subsurface salt cavern; [
55 (h) a project that is designed to:
56 (i) increase the capacity for water delivery to a water user in the state; or
57 (ii) increase the capability of an existing water delivery system or related facility to
58 deliver water to a water user in the state[
59 (i) a hydrogen fuel production or distribution project.
60 (5) (a) "Infrastructure cost-burdened entity" means an applicant that enters into an
61 agreement with the office that qualifies the applicant to receive a tax credit as provided in this
62 part.
63 (b) "Infrastructure cost-burdened entity" includes a pass-through entity taxpayer, as
64 defined in Section 59-10-1402, of a person described in Subsection (5)(a).
65 (6) "Infrastructure-related revenue" means an amount of tax revenue, for an entity
66 creating a high cost infrastructure project, in a taxable year, that is directly attributable to a high
67 cost infrastructure project, under:
68 (a) Title 59, Chapter 7, Corporate Franchise and Income Taxes;
69 (b) Title 59, Chapter 10, Individual Income Tax Act; and
70 (c) Title 59, Chapter 12, Sales and Use Tax Act.
71 (7) "Office" means the Office of Energy Development created in Section 79-6-401.
72 (8) "Tax credit" means a tax credit under Section 59-7-619 or 59-10-1034.
73 (9) "Tax credit certificate" means a certificate issued by the office to an infrastructure
74 cost-burdened entity that:
75 (a) lists the name of the infrastructure cost-burdened entity;
76 (b) lists the infrastructure cost-burdened entity's taxpayer identification number;
77 (c) lists, for a taxable year, the amount of the tax credit authorized for the infrastructure
78 cost-burdened entity under this part; and
79 (d) includes other information as determined by the office.
80 Section 2. Retrospective operation.
81 This bill has retrospective operation for a taxable year beginning on or after January 1,
82 2022.