Governor, Economic Development

Rule R357-9

Alternative Energy Development Tax Incentives

Notice of Proposed Rule

(New Rule)

DAR File No.: 36855
Filed: 09/25/2012 09:18:11 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

Statutory amendments requiring rulemaking.

Summary of the rule or change:

Establishing the standards an alternative energy entity shall meet to qualify for a tax credit.

State statutory or constitutional authorization for this rule:

• Section 63M-1-3013

Anticipated cost or savings to:

the state budget:

Tax credit program has been in place since 2008. This amendment does not significantly affect the administration of the program.

local governments:

The local government approval process is similar to the process already in place since 2008 and the new rule will not affect local government with their involvement.

small businesses:

Application process will be similar to process in place since 2008, so no new costs will be imposed by the rule.

persons other than small businesses, businesses, or local governmental entities:

No other persons will be affected, application and approval process will be similar to process effective since 2008.

Compliance costs for affected persons:

There is no application fee and there will be no compliance costs.

Comments by the department head on the fiscal impact the rule may have on businesses:

None.

Spencer P. Eccles, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Governor
Economic Development
60 E SOUTH TEMPLE 3RD FLR
SALT LAKE CITY, UT 84111

Direct questions regarding this rule to:

• Zachary Derr at the above address, by phone at 801-538-8746, by FAX at 801-538-8888, or by Internet E-mail at zderr@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

11/14/2012

This rule may become effective on:

11/21/2012

Authorized by:

Spencer Eccles, Executive Director

R357. Governor, Economic Development.

R357-9. Alternative Energy Development Tax Incentives.

R357-9-1. Purpose.

(1) The purpose of these rules is to establish:

(a) The standards an alternative energy entity shall meet to qualify for a tax credit;

(b) The procedures by which the Governor's Office of Economic Development issues tax credit certificates.

 

R357-9-2. Authority.

(1) UCA 63M-1-3013(1)(a) requires the office to make rules setting the standards an alternative energy entity shall meet to qualify for a tax credit.

 

R357-9-3. Definitions.

(1) Terms in these rules are used as defined in UCA 63M-1-3102.

 

R357-9-4. Standards.

(1) Applicants shall use the application form provided by the office and follow the procedures and requirements set forth in UCA 63M-1-3104 for obtaining a tax credit certificate.

(2) The office shall review accepted applications based upon the following criteria:

(a) Compliance with the requirements set forth in UCA 63M-1-3103;

(b) The overall economic impact on the state related to providing the tax credit, taking into account such factors as:

(i) the number of new incremental jobs to Utah; or

(ii) capital investment in the state; or

(iii) new state revenues; or

(iv) any combination of Subsections (i), (ii), or (iii); or

(v) other criteria as established by the office by policy publication.

(3) The office shall keep a record of the review of applications based on the criteria in subsection (2).

(4) The office, with advice from the board, may enter into an agreement with a business entity authorizing a tax credit if the business entity meets the standards under subsections (2) and (3) and according to the requirements and procedures set forth in UCA 63M-1-3104.

(5) A business entity is eligible for an economic development tax credit only if the office has entered into an agreement under subsection (4) with the business entity.

 

KEY: economic development, alternative energy, tax credits

Date of Enactment or Last Substantive Amendment: 2012

Authorizing, and Implemented or Interpreted Law: 63M-1-3101