Chief Sponsor: Douglas V. Sagers

Senate Sponsor: ____________


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

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; [or]
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[.]; or

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.