2005 Legislation
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HOUSE BILL NO. 110 – Electric generatn, alternative, tax

HOUSE BILL NO. 110

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Bill Status



H0110aa,aaS.........................................by REVENUE AND TAXATION
ELECTRIC GENERATION - Adds to existing law to provide a sales and use tax
rebate for the sales or use of machinery and equipment used in alternative
methods of generation of electricity; to define terms; and to provide
procedures.
                                                                        
02/04    House intro - 1st rdg - to printing
02/07    Rpt prt - to Rev/Tax
03/10    Rpt out - to Gen Ord
03/14    Rpt out amen - to engros
03/15    Rpt engros - 1st rdg - to 2nd rdg as amen
03/16    2nd rdg - to 3rd rdg as amen
03/17    3rd rdg as amen - PASSED - 63-0-7
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
      Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Bradford, Cannon,
      Chadderdon, Clark, Collins, Deal, Denney, Edmunson, Ellsworth,
      Eskridge, Field(18), Garrett, Hart, Harwood, Henbest, Henderson,
      Jaquet, Jones, Kemp, Lake, LeFavour, Loertscher, Martinez, Mathews,
      McGeachin, McKague, Miller, Mitchell, Moyle, Nielsen, Nonini,
      Pasley-Stuart, Pence, Ring, Ringo, Rusche, Rydalch, Sali, Sayler,
      Schaefer, Shepherd(2), Shepherd(8), Shirley, Skippen, Smylie,
      Snodgrass, Stevenson, Trail, Wills, Wood
      NAYS -- None
      Absent and excused -- Crow, Field(23), Raybould, Roberts, Smith(30),
      Smith(24), Mr. Speaker
    Floor Sponsor - Eskridge
    Title apvd - to Senate
03/18    Senate intro - 1st rdg - to Loc Gov
03/22    Rpt out - rec d/p - to 14th Ord
03/23    Rpt out amen - to 1st rdg as amen
03/24    1st rdg - to 2nd rdg as amen
03/25    2nd rdg - to 3rd rdg as amen
03/29    3rd rdg as amen - PASSED - 30-3-2
      AYES -- Broadsword, Bunderson, Burkett, Burtenshaw, Cameron, Coiner,
      Compton, Corder, Darrington, Davis, Fulcher, Gannon, Geddes, Goedde,
      Hill, Kelly, Keough, Langhorst, Little, Lodge, Malepeai, Marley,
      McKenzie, Pearce, Richardson, Schroeder, Stennett, Sweet, Werk,
      Williams
      NAYS -- Andreason, Jorgenson, Stegner
      Absent and excused -- Brandt, McGee
    Floor Sponsor - Hill
    Title apvd - to House
03/30    House concurred in Senate amens - to engros
03/31    Rpt engros - 1st rdg - to 2nd rdg as amen
04/01    2nd rdg - to 3rd rdg as amen
04/04    3rd rdg as amen - PASSED - 65-0-5
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
      Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Bradford, Cannon,
      Chadderdon, Collins, Deal, Denney, Edmunson, Ellsworth(Ellsworth),
      Eskridge, Field(18), Field(23), Garrett, Hart, Harwood, Henbest,
      Henderson, Jaquet, Jones, Kemp, Lake, LeFavour, Loertscher, Martinez,
      Mathews, McGeachin, McKague, Miller, Mitchell, Moyle, Nielsen,
      Nonini, Pasley-Stuart, Pence, Raybould, Ring, Ringo, Rusche, Rydalch,
      Sali, Sayler(Callen), Schaefer, Shepherd(2), Shepherd(8), Shirley,
      Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Wills,
      Mr. Speaker
      NAYS -- None
      Absent and excused -- Clark, Crow, Roberts, Trail, Wood
    Floor Sponsor - Eskridge
    Title apvd - To enrol - Rpt enrol - Sp signed
04/05    Pres signed - To Governor
04/12    Governor signed
         Session Law Chapter 355
         Effective: 04/12/05;
         07/01/11 Sunset Clause

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 110
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE SALES AND USE TAX; AMENDING CHAPTER 36, TITLE 63, IDAHO  CODE,
  3        BY THE ADDITION OF A NEW SECTION 63-3622QQ, IDAHO CODE, TO PROVIDE A SALES
  4        AND USE TAX EXEMPTION FOR THE SALES OR USE OF MACHINERY AND EQUIPMENT USED
  5        IN  ALTERNATIVE  METHODS OF GENERATION OF ELECTRICITY AND TO DEFINE TERMS;
  6        DECLARING AN EMERGENCY AND PROVIDING A SUNSET DATE.
                                                                        
  7    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  8        SECTION 1.  That Chapter 36, Title 63, Idaho Code, be,  and  the  same  is
  9    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 10    ignated as Section 63-3622QQ, Idaho Code, and to read as follows:
                                                                        
 11        63-3622QQ.  EQUIPMENT USED IN ALTERNATIVE METHOD OF  GENERATION  OF  ELEC-
 12    TRICITY.  (1)  There  are exempted from the taxes imposed by this chapter, the
 13    sales or use of machinery and equipment used directly in generating  electric-
 14    ity   using   fuel  cells,  low  impact  hydro,  wind,  geothermal  resources,
 15    cogeneration, sun, or landfill gas as the principal source  of  power,  or  to
 16    sales of or charges made for tangible personal property in respect to install-
 17    ing such machinery and equipment, but only if the purchaser develops with such
 18    machinery,  equipment,  and  tangible  personal property a facility capable of
 19    generating not less than five (5) megawatts of electricity  and  provides  the
 20    seller  with  an  exemption certificate in a form and manner prescribed by the
 21    commission. The seller shall retain a copy of the certificate for the seller's
 22    files.
 23        (2)  For purposes of this section:
 24        (a)  "Landfill gas" means biomass fuel of the type qualified  for  federal
 25        tax  credits  under  26  U.S.C.  section  29  collected  from  a landfill.
 26        "Landfill" means a landfill as defined in section 39-7403, Idaho Code;
 27        (b)  "Machinery and equipment" means  industrial  fixtures,  devices,  and
 28        support  facilities  that  are integral and necessary to the generation of
 29        electricity  using  fuel  cells,  low  impact  hydro,   wind,   geothermal
 30        resources,  cogeneration,  sun, or landfill gas as the principal source of
 31        power;
 32        (c)  "Machinery and equipment" does not include:
 33             (i)   Hand-powered tools;
 34             (ii)  Property with a useful life of less than one (1) year;
 35             (iii) Repair parts required to restore  machinery  and  equipment  to
 36             normal working order;
 37             (iv)  Replacement  parts  that  do not increase productivity, improve
 38             efficiency, or extend the useful life of machinery and equipment;
 39             (v)   Buildings; or
 40             (vi)  Building fixtures that are not integral and  necessary  to  the
 41             generation  of electricity that are permanently affixed to and become
 42             a physical part of a building;
 43        (d)  Machinery and equipment is "used directly" in generating  electricity
                                                                        
                                           2
                                                                        
  1        with fuel cells or by low impact hydro, wind energy, geothermal resources,
  2        cogeneration,  solar  energy or landfill gas power if it provides any part
  3        of the process that captures the energy of  the  fuel  cells,  low  impact
  4        hydro,  wind,  geothermal  resources,  cogeneration, sun, or landfill gas,
  5        converts that energy to electricity, and stores, transforms  or  transmits
  6        that  electricity  for  entry  into or operation in parallel with electric
  7        transmission and distribution systems;
  8        (e)  "Fuel cell" means an electrochemical reaction  that  generates  elec-
  9        tricity  by  combining  atoms  of hydrogen and oxygen in the presence of a
 10        catalyst;
 11        (f)  "Low impact hydro" means an electric  generating  facility  utilizing
 12        water  for  the  generation  of  electricity, housed in existing canals or
 13        existing reservoirs and  having  a  power  production  capacity  five  (5)
 14        megawatts or greater.
                                                                        
 15        SECTION  2.  An  emergency  existing  therefor,  which emergency is hereby
 16    declared to exist, this act shall be in full force and effect on and after its
 17    passage and approval, and shall be null, void and of no force  and  effect  on
 18    and  after July 1, 2011.

Amendment


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                                                     Moved by    Bunderson           
                                                                        
                                                     Seconded by Corder              
                                                                        
                                                                        
                                       IN THE SENATE
                       SENATE AMENDMENTS TO H.B. NO. 110, As Amended
                                                                        
  1                               AMENDMENTS TO SECTION 1
  2        On page 1 of the engrossed bill, delete lines 12 through  22  and  insert:
  3    "TRICITY.  (1) Purchasers of machinery and equipment used directly in generat-
  4    ing   electricity  using  fuel  cells,  low  impact  hydro,  wind,  geothermal
  5    resources, biomass, cogeneration, sun or landfill gas as the principal  source
  6    of power may qualify for a rebate of sales or use taxes paid on such purchases
  7    but  only if the purchaser develops with such machinery, equipment, and tangi-
  8    ble personal property a facility capable of generating not less  than  twenty-
  9    five (25) kilowatts of electricity.".
 10        On page 2, following line 14 insert:
 11        "(3)  To qualify for the rebate, the taxpayer and his contractors must pay
 12    sales  and  use tax on their purchases of property.  Once  a public utility, a
 13    cooperative, a municipality or the public utilities commission  certifies  the
 14    project  will generate at least twenty-five (25) kilowatts of electricity, the
 15    taxpayer may file a refund request with the state tax commission.  The  refund
 16    request  shall  state  that  the taxpayer will construct or has constructed  a
 17    project that will generate  sufficient kilowatts of electricity at the project
 18    site to be eligible for the rebate  and  that  the  taxpayer  is  entitled  to
 19    receive a rebate of all sales and use taxes paid that qualifies for the rebate
 20    created by this section.
 21        (4)  Upon filing of a written refund claim by the taxpayer entitled to the
 22    rebate,  and  subject to such reasonable documentation and verification as the
 23    state tax commission may require, the rebate shall be paid by  the  state  tax
 24    commission  as  a  refund allowable under section 63-3626, Idaho Code. A claim
 25    for rebate under this section must be filed on or before the last day  of  the
 26    third calendar year following the year in which the taxes sought to be rebated
 27    were paid or the right to the rebate is lost.
 28        (5)  Any  rebate  paid shall be subject to recapture by the state tax com-
 29    mission. In the event the property is not used, stored or  otherwise  consumed
 30    in  the  process  of generating electricity for a period of sixty (60) months,
 31    the state tax commission may recapture the tax paid in the same proportion  as
 32    an  amount  of  credit required to be recaptured under section 63-3029B, Idaho
 33    Code.
 34        (6)  Any recapture amount due under this section shall be a deficiency  in
 35    tax  for the period in which the disqualification first occurs for purposes of
 36    section 63-3629, Idaho Code, and may be enforced and collected in  the  manner
 37    provided  by  the  Idaho  sales tax act, provided however, that in lieu of the
 38    provisions of section 63-3633, Idaho Code, the period of time within which the
 39    commission may issue a notice under section 63-3629, Idaho Code, in regard  to
 40    an  amount subject to recapture shall be the later of five (5) years after the
 41    end of the taxable year, for income tax purposes, in which the project  period
 42    ends.".
                                                                        
 43                                 CORRECTION TO TITLE
                                 ]]]
                                                                        
                                          2
                                                                        
  1        On  page  1,  delete lines 4 through 6 and insert: "AND USE TAX REBATE FOR
  2    THE SALE OR USE OF MACHINERY AND EQUIPMENT USED IN ALTERNATIVE METHODS OF GEN-
  3    ERATION OF ELECTRICITY, TO DEFINE TERMS AND TO PROVIDE  PROCEDURES;  DECLARING
  4    AN EMERGENCY AND PROVIDING A SUNSET DATE.".
                                                                        
                                          3
                                                                        
                                                     Moved by    Roberts             
                                                                        
                                                     Seconded by Crow                
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                              HOUSE AMENDMENT TO H.B. NO. 110
                                                                        
                                                                        
  1                               AMENDMENTS TO SECTION 1
  2        On page 1  of the printed bill, in line 14, following "resources," insert:
  3    "biomass,";  in  line 19, delete "five (5) megawatts" and insert: "twenty-five
  4    (25) kilowatts"; and in line 30 following "resources," insert: "biomass,".
  5        On page 2, in line 1, following "resources," insert: "biomass,";  in  line
  6    4,  following  "resources,"  insert: "biomass,"; in line 13 delete "five (5)";
  7    and in line 14, delete "megawatts" and insert: "twenty-five (25) kilowatts".

Engrossed Bill (Original Bill with Amendment(s) Incorporated)


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                  HOUSE BILL NO. 110, As Amended, As Amended in the Senate
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE SALES AND USE TAX; AMENDING CHAPTER 36, TITLE 63, IDAHO  CODE,
  3        BY THE ADDITION OF A NEW SECTION 63-3622QQ, IDAHO CODE, TO PROVIDE A SALES
  4        AND  USE TAX REBATE FOR THE SALE OR USE OF MACHINERY AND EQUIPMENT USED IN
  5        ALTERNATIVE METHODS OF GENERATION OF ELECTRICITY, TO DEFINE TERMS  AND  TO
  6        PROVIDE PROCEDURES; DECLARING AN EMERGENCY AND PROVIDING A SUNSET DATE.
                                                                        
  7    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  8        SECTION  1.  That  Chapter  36,  Title 63, Idaho Code, be, and the same is
  9    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 10    ignated as Section 63-3622QQ, Idaho Code, and to read as follows:
                                                                        
 11        63-3622QQ.  EQUIPMENT  USED  IN  ALTERNATIVE METHOD OF GENERATION OF ELEC-
 12    TRICITY. (1) Purchasers of machinery and equipment used directly in generating
 13    electricity using fuel cells, low impact hydro,  wind,  geothermal  resources,
 14    biomass,  cogeneration,  sun  or landfill gas as the principal source of power
 15    may qualify for a rebate of sales or use taxes paid on such purchases but only
 16    if the purchaser develops with such machinery, equipment,  and  tangible  per-
 17    sonal property a facility capable of generating not less than twenty-five (25)
 18    kilowatts of electricity.
 19        (2)  For purposes of this section:
 20        (a)  "Landfill  gas"  means biomass fuel of the type qualified for federal
 21        tax credits  under  26  U.S.C.  section  29  collected  from  a  landfill.
 22        "Landfill" means a landfill as defined in section 39-7403, Idaho Code;
 23        (b)  "Machinery  and  equipment"  means  industrial fixtures, devices, and
 24        support facilities that are integral and necessary to  the  generation  of
 25        electricity   using   fuel  cells,  low  impact  hydro,  wind,  geothermal
 26        resources, biomass, cogeneration, sun, or landfill gas  as  the  principal
 27        source of power;
 28        (c)  "Machinery and equipment" does not include:
 29             (i)   Hand-powered tools;
 30             (ii)  Property with a useful life of less than one (1) year;
 31             (iii) Repair  parts  required  to  restore machinery and equipment to
 32             normal working order;
 33             (iv)  Replacement parts that do not  increase  productivity,  improve
 34             efficiency, or extend the useful life of machinery and equipment;
 35             (v)   Buildings; or
 36             (vi)  Building  fixtures  that  are not integral and necessary to the
 37             generation of electricity that are permanently affixed to and  become
 38             a physical part of a building;
 39        (d)  Machinery  and equipment is "used directly" in generating electricity
 40        with fuel cells or by low impact hydro, wind energy, geothermal resources,
 41        biomass, cogeneration, solar energy or landfill gas power if  it  provides
 42        any  part  of  the process that captures the energy of the fuel cells, low
 43        impact hydro, wind, geothermal resources, biomass, cogeneration,  sun,  or
                                                                        
                                           2
                                                                        
  1        landfill  gas, converts that energy to electricity, and stores, transforms
  2        or transmits that electricity for entry into or operation in parallel with
  3        electric transmission and distribution systems;
  4        (e)  "Fuel cell" means an electrochemical reaction  that  generates  elec-
  5        tricity  by  combining  atoms  of hydrogen and oxygen in the presence of a
  6        catalyst;
  7        (f)  "Low impact hydro" means an electric  generating  facility  utilizing
  8        water  for  the  generation  of  electricity, housed in existing canals or
  9        existing reservoirs and  having a power  production  capacity  twenty-five
 10        (25) kilowatts or greater.
 11        (3)  To  qualify for the rebate, the taxpayer and his contractors must pay
 12    sales and use tax on their purchases of property.  Once  a public  utility,  a
 13    cooperative,  a  municipality or the public utilities commission certifies the
 14    project will generate at least twenty-five (25) kilowatts of electricity,  the
 15    taxpayer  may file a refund request with the state tax commission.  The refund
 16    request shall state that the taxpayer will construct  or  has  constructed   a
 17    project that will generate  sufficient kilowatts of electricity at the project
 18    site  to  be  eligible  for  the  rebate  and that the taxpayer is entitled to
 19    receive a rebate of all sales and use taxes paid that qualifies for the rebate
 20    created by this section.
 21        (4)  Upon filing of a written refund claim by the taxpayer entitled to the
 22    rebate, and subject to such reasonable documentation and verification  as  the
 23    state  tax  commission  may require, the rebate shall be paid by the state tax
 24    commission as a refund allowable under section 63-3626, Idaho  Code.  A  claim
 25    for  rebate  under this section must be filed on or before the last day of the
 26    third calendar year following the year in which the taxes sought to be rebated
 27    were paid or the right to the rebate is lost.
 28        (5)  Any rebate paid shall be subject to recapture by the state  tax  com-
 29    mission.  In  the event the property is not used, stored or otherwise consumed
 30    in the process of generating electricity for a period of  sixty  (60)  months,
 31    the  state tax commission may recapture the tax paid in the same proportion as
 32    an amount of credit required to be recaptured under  section  63-3029B,  Idaho
 33    Code.
 34        (6)  Any  recapture amount due under this section shall be a deficiency in
 35    tax for the period in which the disqualification first occurs for purposes  of
 36    section  63-3629,  Idaho Code, and may be enforced and collected in the manner
 37    provided by the Idaho sales tax act, provided however, that  in  lieu  of  the
 38    provisions of section 63-3633, Idaho Code, the period of time within which the
 39    commission  may issue a notice under section 63-3629, Idaho Code, in regard to
 40    an amount subject to recapture shall be the later of five (5) years after  the
 41    end  of the taxable year, for income tax purposes, in which the project period
 42    ends.
                                                                        
 43        SECTION 2.  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 shall be null, void and of no force and effect on
 46    and  after July 1, 2011.
                                                                        
                                           3
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                               HOUSE BILL NO. 110, As Amended
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE SALES AND USE TAX; AMENDING CHAPTER 36, TITLE 63, IDAHO  CODE,
  3        BY THE ADDITION OF A NEW SECTION 63-3622QQ, IDAHO CODE, TO PROVIDE A SALES
  4        AND USE TAX EXEMPTION FOR THE SALES OR USE OF MACHINERY AND EQUIPMENT USED
  5        IN  ALTERNATIVE  METHODS OF GENERATION OF ELECTRICITY AND TO DEFINE TERMS;
  6        DECLARING AN EMERGENCY AND PROVIDING A SUNSET DATE.
                                                                        
  7    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  8        SECTION 1.  That Chapter 36, Title 63, Idaho Code, be,  and  the  same  is
  9    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 10    ignated as Section 63-3622QQ, Idaho Code, and to read as follows:
                                                                        
 11        63-3622QQ.  EQUIPMENT USED IN ALTERNATIVE METHOD OF  GENERATION  OF  ELEC-
 12    TRICITY.  (1)  There  are exempted from the taxes imposed by this chapter, the
 13    sales or use of machinery and equipment used directly in generating  electric-
 14    ity  using  fuel cells, low impact hydro, wind, geothermal resources, biomass,
 15    cogeneration, sun, or landfill gas as the principal source  of  power,  or  to
 16    sales of or charges made for tangible personal property in respect to install-
 17    ing such machinery and equipment, but only if the purchaser develops with such
 18    machinery,  equipment,  and  tangible  personal property a facility capable of
 19    generating not less than twenty-five (25) kilowatts of  electricity  and  pro-
 20    vides the seller with an exemption certificate in a form and manner prescribed
 21    by  the  commission. The seller shall retain a copy of the certificate for the
 22    seller's files.
 23        (2)  For purposes of this section:
 24        (a)  "Landfill gas" means biomass fuel of the type qualified  for  federal
 25        tax  credits  under  26  U.S.C.  section  29  collected  from  a landfill.
 26        "Landfill" means a landfill as defined in section 39-7403, Idaho Code;
 27        (b)  "Machinery and equipment" means  industrial  fixtures,  devices,  and
 28        support  facilities  that  are integral and necessary to the generation of
 29        electricity  using  fuel  cells,  low  impact  hydro,   wind,   geothermal
 30        resources,  biomass,  cogeneration,  sun, or landfill gas as the principal
 31        source of power;
 32        (c)  "Machinery and equipment" does not include:
 33             (i)   Hand-powered tools;
 34             (ii)  Property with a useful life of less than one (1) year;
 35             (iii) Repair parts required to restore  machinery  and  equipment  to
 36             normal working order;
 37             (iv)  Replacement  parts  that  do not increase productivity, improve
 38             efficiency, or extend the useful life of machinery and equipment;
 39             (v)   Buildings; or
 40             (vi)  Building fixtures that are not integral and  necessary  to  the
 41             generation  of electricity that are permanently affixed to and become
 42             a physical part of a building;
 43        (d)  Machinery and equipment is "used directly" in generating  electricity
 44        with fuel cells or by low impact hydro, wind energy, geothermal resources,
 45        biomass,  cogeneration,  solar energy or landfill gas power if it provides
 46        any part of the process that captures the energy of the  fuel  cells,  low
                                                                        
                                           4
                                                                        
  1        impact  hydro,  wind, geothermal resources, biomass, cogeneration, sun, or
  2        landfill gas, converts that energy to electricity, and stores,  transforms
  3        or transmits that electricity for entry into or operation in parallel with
  4        electric transmission and distribution systems;
  5        (e)  "Fuel  cell"  means  an electrochemical reaction that generates elec-
  6        tricity by combining atoms of hydrogen and oxygen in  the  presence  of  a
  7        catalyst;
  8        (f)  "Low  impact  hydro"  means an electric generating facility utilizing
  9        water for the generation of electricity,  housed  in  existing  canals  or
 10        existing  reservoirs  and   having a power production capacity twenty-five
 11        (25) kilowatts or greater.
                                                                        
 12        SECTION 2.  An emergency existing  therefor,  which  emergency  is  hereby
 13    declared to exist, this act shall be in full force and effect on and after its
 14    passage  and  approval,  and shall be null, void and of no force and effect on
 15    and  after July 1, 2011.

Statement of Purpose / Fiscal Impact


     Reprint   Reprint   Reprint   Reprint   Reprint   Reprint


                       STATEMENT OF PURPOSE

                             RS 14584

This legislation will provide an exemption to the sales and use
tax for purchases of machinery and equipment used in directly
generating electricity using fuel cells, low impact hydro, wind,
geothermal resources, biomass. co-generation, sun or landfill gas
as the principal source of power.  The exemption would be in
effect until July 1, 2011.


                           FISCAL NOTE

 Loss to the state general fund would be $2,125,000 annually.  



Contact
Name:  Senator Brent Hill,
       Rep. George Eskridge
Phone: 332-1000 


STATEMENT OF PURPOSE/FISCAL NOTE                   H 110aa