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H0761aa,aaS.........................................by REVENUE AND TAXATION
INCOME TAX CREDIT - Adds to existing law to provide for an income tax
credit for alternative energy generation of electricity for six taxable
years of one-half cent per kilowatt hour.
02/25 House intro - 1st rdg - to printing
02/26 Rpt prt - to Rev/Tax
03/09 Rpt out - to Gen Ord
03/10 Rpt out amen - to engros
03/11 Rpt engros - 1st rdg - to 2nd rdg as amen
03/12 2nd rdg - to 3rd rdg as amen
Rls susp - PASSED - 63-6-1
AYES -- Andersen, Barraclough, Barrett, Bauer, Bayer, Bedke, Bell,
Black, Block, Boe, Bolz, Bradford, Campbell, Cannon, Collins, Crow,
Cuddy, Deal, Denney, Douglas, Eberle, Edmunson, Ellsworth, Eskridge,
Field(18), Field(23), Gagner, Garrett, Jaquet, Jones, Kellogg,
Kulczyk, Langford, Langhorst, Martinez, Meyer, Miller, Mitchell,
Moyle, Naccarato, Nielsen, Pasley-Stuart, Raybould, Ridinger, Ring,
Ringo, Roberts, Robison, Rydalch, Sali, Sayler, Schaefer, Shepherd,
Shirley, Skippen, Smith(30), Smylie, Snodgrass, Stevenson, Trail,
Wills, Wood, Mr. Speaker
NAYS -- Clark, Harwood, Henbest, Lake, McKague, Smith(24)
Absent and excused -- McGeachin
Floor Sponsor - Eskridge
Title apvd - to Senate
03/15 Senate intro - 1st rdg - to Loc Gov
03/18 Rpt out - to 14th Ord
Rpt out amen - to 1st rdg as amen
03/19 1st rdg - to 2nd rdg as amen
Rls susp - PASSED - 32-0-3
AYES -- Andreason, Bailey, Brandt, Bunderson, Burkett(Maxand),
Calabretta, Cameron, Compton, Darrington, Davis, Gannon, Geddes,
Goedde, Hill, Ingram, Kennedy, Keough, Little, Lodge, Malepeai,
Marley, McKenzie, McWilliams, Noble, Noh, Richardson, Schroeder,
Sorensen, Stegner, Stennett, Werk, Williams
NAYS -- None
Absent and excused -- Burtenshaw, Pearce, Sweet
Floor Sponsor - Hill
Title apvd - to House
03/20 House concurred in Senate amens - to engros
Rpt engros - 1st rdg - to 2nd rdg as amen
Rls susp - PASSED - 61-0-9
AYES -- Andersen, Barraclough, Barrett, Bayer, Bedke, Bell, Black,
Block, Boe, Bolz, Bradford, Campbell, Cannon, Collins, Crow, Cuddy,
Deal, Denney, Douglas, Edmunson, Ellsworth, Eskridge, Field(18),
Field(23), Gagner, Garrett, Henbest, Jaquet, Jones, Kellogg, Kulczyk,
Lake, Langford, Langhorst, Martinez, McGeachin, McKague, Meyer,
Miller, Mitchell, Moyle, Naccarato, Nielsen, Pasley-Stuart, Raybould,
Ring, Ringo, Robison, Rydalch, Sali, Sayler, Schaefer, Shepherd,
Shirley, Skippen, Smith(30), Smylie, Snodgrass, Stevenson, Wills,
Wood
NAYS -- None
Absent and excused -- Bauer, Clark, Eberle, Harwood, Ridinger,
Roberts, Smith(24), Trail, Mr. Speaker
Floor Sponsor - Eskridge
Title apvd - To enrol - Rpt enrol - Sp signed
03/20 Pres signed
03/22 To Governor
04/02 Governor VETOED
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 761
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO INCOME TAXATION; AMENDING CHAPTER 30, TITLE 63, IDAHO CODE, BY THE
3 ADDITION OF A NEW SECTION 63-3029H, IDAHO CODE, TO PROVIDE FOR AN INCOME
4 TAX CREDIT FOR ALTERNATIVE ENERGY GENERATION OF ELECTRICITY FOR SIX TAX-
5 ABLE YEARS, TO PROVIDE THE AMOUNT OF THE CREDIT, TO PROVIDE PROCEDURES, TO
6 DEFINE TERMS AND TO PROVIDE FOR CARRYOVER AUTHORITY; DECLARING AN EMER-
7 GENCY, PROVIDING RETROACTIVE APPLICATION AND PROVIDING A SUNSET DATE.
8 Be It Enacted by the Legislature of the State of Idaho:
9 SECTION 1. That Chapter 30, Title 63, Idaho Code, be, and the same is
10 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
11 ignated as Section 63-3029H, Idaho Code, and to read as follows:
12 63-3029H. INCOME TAX CREDIT FOR ALTERNATIVE ENERGY GENERATION OF ELEC-
13 TRICITY. (1) For taxable years beginning between January 1, 2004, and December
14 31, 2009, at the election of the taxpayer, there shall be allowed, subject to
15 the applicable limitations provided herein a credit against the income tax
16 imposed by chapter 30, title 63, Idaho Code, of one-half of one cent (0.5¢)
17 per kilowatt of electric energy generated by the taxpayer by alternative meth-
18 ods from a plant or hydropower facility that was constructed on or after Janu-
19 ary 1, 2004, and prior to January 1, 2010. In order to qualify for the credit
20 pursuant to this section, each and every individual, firm, partnership, common
21 law trust, corporation, association or other organization, now engaged or
22 hereafter to engage in the generation, manufacture or production of electric-
23 ity and electrical energy in the state of Idaho, through and by means of
24 alternative methods, for barter, sale, or exchange, and hereinafter referred
25 to as the "producer," shall on or before the last day of each calendar quar-
26 ter, render a statement to the state tax commission of the state of Idaho of
27 all such electricity and electrical energy so generated, manufactured or pro-
28 duced by him or it in the state of Idaho, during the preceding calendar quar-
29 ter. As used in this section, generation of electrical energy by alternative
30 methods shall mean generation from biomass, waste, renewable resources includ-
31 ing, but not limited to, solar, wind, low-impact hydro and pumped storage,
32 geothermal resources, co-generation or any combination thereof. As used
33 herein, low-impact hydro shall mean an electric generating facility utilizing
34 water for the generation of electricity, housed in a canal or reservoir and
35 not having a power production capacity greater than fifty (50) megawatts.
36 (2) The total credit allowed by this section and all other credits
37 allowed under this chapter except for the credits allowed under section
38 63-3029, Idaho Code, shall not exceed fifty percent (50%) of the tax liability
39 of the taxpayer. The tax liability of the taxpayer shall be the tax after
40 deducting the credit allowed by section 63-3029, Idaho Code.
41 (3) If the sum of the credit carryovers from the credit allowed by sub-
42 section (2) of this section and the amount of credit for the taxable year from
43 the credit allowed by subsection (2) of this section exceed the limitation
2
1 imposed by subsection (2) of this section for the current taxable year, the
2 excess attributable to the current taxable year's credit shall be a credit
3 carryover to the three (3) succeeding taxable years. The entire amount of
4 unused credit shall be carried forward to the earliest of the succeeding
5 years, wherein the oldest available unused credit shall be used first.
6 SECTION 2. An emergency existing therefor, which emergency is hereby
7 declared to exist, this act shall be in full force and effect on and after its
8 passage and approval, and retroactively to January 1, 2004; and this act shall
9 be null, void and of no force and effect on and after January 1, 2010.
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
Moved by Ridinger
Seconded by Cuddy
IN THE HOUSE OF REPRESENTATIVES
HOUSE AMENDMENT TO H.B. NO. 761
1 AMENDMENTS TO SECTION 1
2 On page 1 of the printed bill, in line 17 following "kilowatt" insert:
3 "hour".
4 On page 2, following line 5, insert:
5 "(4) (a) Subject to the requirements of this subsection, a taxpayer who
6 earns and is entitled to the credit or to an unused portion of the credit
7 allowed by this section may transfer all or a portion of the unused credit
8 to:
9 (i) Another taxpayer required to file a return under this chapter;
10 or
11 (ii) To an intermediary for its use or for resale to a taxpayer
12 required to file a return under this chapter.
13 In the event of either such a transfer, the transferee may claim the
14 credit on the transferee's income tax return originally filed during the
15 calendar year in which the transfer takes place and, in the case of car-
16 ryover of the credit, on the transferee's returns for the number of years
17 of carryover available to the transferor at the time of the transfer
18 unless earlier exhausted.
19 (b) Before completing a transfer under this subsection, the transferor
20 shall notify the state tax commission of its intention to transfer the
21 credit and the identity of the transferee. The state tax commission shall
22 provide the transferor with a written statement of the amount of credit
23 available under this section as then appearing in the commission's records
24 and the number of years the credit may be carried over. The transferee
25 shall attach a copy of the statement to any return in regard to which the
26 transferred credit is claimed.
27 (c) In the event that after the transfer the state tax commission deter-
28 mines that the amount of credit properly available under this section is
29 less than the amount claimed by the transferor of the credit or that the
30 credit is subject to recapture, the commission shall assess the amount of
31 overstated or recaptured credit as taxes due from the transferor and not
32 the transferee. The assessment shall be made in the manner provided for a
33 deficiency in taxes under this chapter.".
34 CORRECTION TO TITLE
35 On page 1, delete line 6 and insert: "DEFINE TERMS, TO PROVIDE FOR CARRY-
36 OVER AUTHORITY AND TO PROVIDE TRANSFERABILITY; DECLARING AN EMER-".
Moved by Hill
Seconded by Stegner
IN THE SENATE
SENATE AMENDMENT TO H.B. NO. 761, As Amended
]]]
2
1 AMENDMENT TO SECTION 1
2 On page 2 of the engrossed bill, delete lines 7 through 35.
3 CORRECTION TO TITLE
4 On page 1, delete lines 6 and 7 and insert: "DEFINE TERMS AND TO PROVIDE
5 FOR CARRYOVER AUTHORITY; DECLARING AN EMERGENCY, PROVIDING RETROACTIVE APPLI-
6 CATION AND".
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 761, As Amended, As Amended in the Senate
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO INCOME TAXATION; AMENDING CHAPTER 30, TITLE 63, IDAHO CODE, BY THE
3 ADDITION OF A NEW SECTION 63-3029H, IDAHO CODE, TO PROVIDE FOR AN INCOME
4 TAX CREDIT FOR ALTERNATIVE ENERGY GENERATION OF ELECTRICITY FOR SIX TAX-
5 ABLE YEARS, TO PROVIDE THE AMOUNT OF THE CREDIT, TO PROVIDE PROCEDURES, TO
6 DEFINE TERMS AND TO PROVIDE FOR CARRYOVER AUTHORITY; DECLARING AN EMER-
7 GENCY, PROVIDING RETROACTIVE APPLICATION AND PROVIDING A SUNSET DATE.
8 Be It Enacted by the Legislature of the State of Idaho:
9 SECTION 1. That Chapter 30, Title 63, Idaho Code, be, and the same is
10 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
11 ignated as Section 63-3029H, Idaho Code, and to read as follows:
12 63-3029H. INCOME TAX CREDIT FOR ALTERNATIVE ENERGY GENERATION OF ELEC-
13 TRICITY. (1) For taxable years beginning between January 1, 2004, and December
14 31, 2009, at the election of the taxpayer, there shall be allowed, subject to
15 the applicable limitations provided herein a credit against the income tax
16 imposed by chapter 30, title 63, Idaho Code, of one-half of one cent (0.5¢)
17 per kilowatt hour of electric energy generated by the taxpayer by alternative
18 methods from a plant or hydropower facility that was constructed on or after
19 January 1, 2004, and prior to January 1, 2010. In order to qualify for the
20 credit pursuant to this section, each and every individual, firm, partnership,
21 common law trust, corporation, association or other organization, now engaged
22 or hereafter to engage in the generation, manufacture or production of elec-
23 tricity and electrical energy in the state of Idaho, through and by means of
24 alternative methods, for barter, sale, or exchange, and hereinafter referred
25 to as the "producer," shall on or before the last day of each calendar quar-
26 ter, render a statement to the state tax commission of the state of Idaho of
27 all such electricity and electrical energy so generated, manufactured or pro-
28 duced by him or it in the state of Idaho, during the preceding calendar quar-
29 ter. As used in this section, generation of electrical energy by alternative
30 methods shall mean generation from biomass, waste, renewable resources includ-
31 ing, but not limited to, solar, wind, low-impact hydro and pumped storage,
32 geothermal resources, co-generation or any combination thereof. As used
33 herein, low-impact hydro shall mean an electric generating facility utilizing
34 water for the generation of electricity, housed in a canal or reservoir and
35 not having a power production capacity greater than fifty (50) megawatts.
36 (2) The total credit allowed by this section and all other credits
37 allowed under this chapter except for the credits allowed under section
38 63-3029, Idaho Code, shall not exceed fifty percent (50%) of the tax liability
39 of the taxpayer. The tax liability of the taxpayer shall be the tax after
40 deducting the credit allowed by section 63-3029, Idaho Code.
41 (3) If the sum of the credit carryovers from the credit allowed by sub-
42 section (2) of this section and the amount of credit for the taxable year from
43 the credit allowed by subsection (2) of this section exceed the limitation
2
1 imposed by subsection (2) of this section for the current taxable year, the
2 excess attributable to the current taxable year's credit shall be a credit
3 carryover to the three (3) succeeding taxable years. The entire amount of
4 unused credit shall be carried forward to the earliest of the succeeding
5 years, wherein the oldest available unused credit shall be used first.
6 SECTION 2. An emergency existing therefor, which emergency is hereby
7 declared to exist, this act shall be in full force and effect on and after its
8 passage and approval, and retroactively to January 1, 2004; and this act shall
9 be null, void and of no force and effect on and after January 1, 2010.
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 761, As Amended
BY REVENUE AND TAXATION COMMITTEE
10 AN ACT
11 RELATING TO INCOME TAXATION; AMENDING CHAPTER 30, TITLE 63, IDAHO CODE, BY THE
12 ADDITION OF A NEW SECTION 63-3029H, IDAHO CODE, TO PROVIDE FOR AN INCOME
13 TAX CREDIT FOR ALTERNATIVE ENERGY GENERATION OF ELECTRICITY FOR SIX TAX-
14 ABLE YEARS, TO PROVIDE THE AMOUNT OF THE CREDIT, TO PROVIDE PROCEDURES, TO
15 DEFINE TERMS, TO PROVIDE FOR CARRYOVER AUTHORITY AND TO PROVIDE TRANSFER-
16 ABILITY; DECLARING AN EMERGENCY, PROVIDING RETROACTIVE APPLICATION AND
17 PROVIDING A SUNSET DATE.
18 Be It Enacted by the Legislature of the State of Idaho:
19 SECTION 3. That Chapter 30, Title 63, Idaho Code, be, and the same is
20 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
21 ignated as Section 63-3029H, Idaho Code, and to read as follows:
22 63-3029H. INCOME TAX CREDIT FOR ALTERNATIVE ENERGY GENERATION OF ELEC-
23 TRICITY. (1) For taxable years beginning between January 1, 2004, and December
24 31, 2009, at the election of the taxpayer, there shall be allowed, subject to
25 the applicable limitations provided herein a credit against the income tax
26 imposed by chapter 30, title 63, Idaho Code, of one-half of one cent (0.5¢)
27 per kilowatt hour of electric energy generated by the taxpayer by alternative
28 methods from a plant or hydropower facility that was constructed on or after
29 January 1, 2004, and prior to January 1, 2010. In order to qualify for the
30 credit pursuant to this section, each and every individual, firm, partnership,
31 common law trust, corporation, association or other organization, now engaged
32 or hereafter to engage in the generation, manufacture or production of elec-
33 tricity and electrical energy in the state of Idaho, through and by means of
34 alternative methods, for barter, sale, or exchange, and hereinafter referred
35 to as the "producer," shall on or before the last day of each calendar quar-
36 ter, render a statement to the state tax commission of the state of Idaho of
37 all such electricity and electrical energy so generated, manufactured or pro-
38 duced by him or it in the state of Idaho, during the preceding calendar quar-
39 ter. As used in this section, generation of electrical energy by alternative
40 methods shall mean generation from biomass, waste, renewable resources includ-
41 ing, but not limited to, solar, wind, low-impact hydro and pumped storage,
42 geothermal resources, co-generation or any combination thereof. As used
43 herein, low-impact hydro shall mean an electric generating facility utilizing
44 water for the generation of electricity, housed in a canal or reservoir and
45 not having a power production capacity greater than fifty (50) megawatts.
3
1 (2) The total credit allowed by this section and all other credits
2 allowed under this chapter except for the credits allowed under section
3 63-3029, Idaho Code, shall not exceed fifty percent (50%) of the tax liability
4 of the taxpayer. The tax liability of the taxpayer shall be the tax after
5 deducting the credit allowed by section 63-3029, Idaho Code.
6 (3) If the sum of the credit carryovers from the credit allowed by sub-
7 section (2) of this section and the amount of credit for the taxable year from
8 the credit allowed by subsection (2) of this section exceed the limitation
9 imposed by subsection (2) of this section for the current taxable year, the
10 excess attributable to the current taxable year's credit shall be a credit
11 carryover to the three (3) succeeding taxable years. The entire amount of
12 unused credit shall be carried forward to the earliest of the succeeding
13 years, wherein the oldest available unused credit shall be used first.
14 (4) (a) Subject to the requirements of this subsection, a taxpayer who
15 earns and is entitled to the credit or to an unused portion of the credit
16 allowed by this section may transfer all or a portion of the unused credit
17 to:
18 (i) Another taxpayer required to file a return under this chapter;
19 or
20 (ii) To an intermediary for its use or for resale to a taxpayer
21 required to file a return under this chapter.
22 In the event of either such a transfer, the transferee may claim the
23 credit on the transferee's income tax return originally filed during the
24 calendar year in which the transfer takes place and, in the case of car-
25 ryover of the credit, on the transferee's returns for the number of years
26 of carryover available to the transferor at the time of the transfer
27 unless earlier exhausted.
28 (b) Before completing a transfer under this subsection, the transferor
29 shall notify the state tax commission of its intention to transfer the
30 credit and the identity of the transferee. The state tax commission shall
31 provide the transferor with a written statement of the amount of credit
32 available under this section as then appearing in the commission's records
33 and the number of years the credit may be carried over. The transferee
34 shall attach a copy of the statement to any return in regard to which the
35 transferred credit is claimed.
36 (c) In the event that after the transfer the state tax commission deter-
37 mines that the amount of credit properly available under this section is
38 less than the amount claimed by the transferor of the credit or that the
39 credit is subject to recapture, the commission shall assess the amount of
40 overstated or recaptured credit as taxes due from the transferor and not
41 the transferee. The assessment shall be made in the manner provided for a
42 deficiency in taxes under this chapter.
43 SECTION 4. An emergency existing therefor, which emergency is hereby
44 declared to exist, this act shall be in full force and effect on and after its
45 passage and approval, and retroactively to January 1, 2004; and this act shall
46 be null, void and of no force and effect on and after January 1, 2010.
REPRINT REPRINT REPRINT REPRINT REPRINT REPRINT
STATEMENT OF PURPOSE
RS13823C1
This legislation would provide an income tax credit of
one-half cent per kilowatt for electric energy generated by wind
turbines, solar energy, low impact hydro, industrial waste,
animal waste, municipal waste, geothermal resources and other
renewable resources. The facility would have to be constructed
after January 1, 2004, to qualify.
FISCAL IMPACT
The production credit is based on one half of one cent per
kilowatt of electric energy generated by alternative means. If
we can assume that 120 MW (120,000KW) new power annually were to
be generated and meet the tests of the statute, then multiplying
the production figures of 120,000 kilowatt hours times 8760 times
.30 for load capacity times .005 (one half of one cent); this
would pencil out to $1,576,800 annually per 120 MW of new load
that comes on line that meets the credit criteria. Again the tax
liability is limited to 50% of the tax liability of the taxpayer
so that resultant loss would appear to be in the $788,400 range
annually. It is assumed that the tax credits would add up
exponentially so that $1,576,800 would be taken in the second
year, $2,365,200 the third year, $3,153,600 the fourth year,
$3,941,600 the fifth year and $4,730,000 the last year of the
credit. Again the argument would be there about moneys coming to
the general fund from additional income and sales taxes paid in
constructing the plant. Also it would depend on the income of the
entity claiming the credit as well.
Contact:
Name: Senator Brent Hill
Representative George Eskridge
Committee on Energy
Phone: 332-1000.
STATEMENT OF PURPOSE/FISCAL NOTE H 761AA