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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
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature First Regular Session - 2005IN 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.
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature First Regular Session - 2005Moved 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".
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature First Regular Session - 2005IN 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.
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