State Codes and Statutes

Statutes > Utah > Title-63m > Chapter-01 > 63m-1-2804

63M-1-2804. Creation of alternative energy development zones -- Tax credits.
(1) The office, with advice from the board, may create an alternative energy developmentzone in the state that satisfies the following requirements:
(a) the area is zoned commercial, industrial, manufacturing, business park, research park,or other appropriate use in a community approved master plan;
(b) the request to create an alternative energy development zone has been forwarded tothe office after first being approved by an appropriate local government entity; and
(c) the local government entity has committed or will commit to provide incentives,which may include an abatement of some or all of the property taxes for up to 30 years for analternative energy project qualified under this part.
(2) (a) By following the procedures and requirements of Title 63G, Chapter 4,Administrative Procedures Act, the office shall set standards that a business entity must meet toqualify for a tax credit under this part.
(b) The office shall ensure that those standards include the following requirements:
(i) the alternative energy project must be within an alternative energy development zone;
(ii) the alternative energy project includes direct investment within the geographicboundaries of the alternative energy development zone;
(iii) the alternative energy project brings new incremental jobs to Utah;
(iv) the alternative energy project includes significant capital investment, the creation ofhigh paying jobs, or significant purchases from Utah vendors and providers, or any combinationof these three economic factors;
(v) the alternative energy project generates new state revenues; and
(vi) the business entity qualifying for the tax credit meets the requirements of Section63M-1-2405.
(3) (a) The office, with advice from the board:
(i) may enter into an agreement with a business entity authorizing a tax credit to abusiness entity that meets the standards established under Subsection (2); and
(ii) shall consider economic modeling, including the costs and benefits of the alternativeenergy project to state and local governments, in determining the tax credit amount.
(b) The office may not authorize or commit a tax credit to a business entity that exceeds100% of the new state revenues generated by the business entity's alternative energy project overthe life of an alternative energy project or 20 years, whichever is less.
(4) The office shall ensure that the agreement with the business entity that is described inSubsection (3):
(a) details the requirements that the business entity must meet to qualify for a tax creditunder this part;
(b) specifies the maximum amount of tax credit that the business entity may earn overthe life of the alternative energy project;
(c) establishes the length of time the business entity may claim a tax credit;
(d) requires the business entity to retain records supporting its claim for a tax credit for atleast four years after the business entity claims a tax credit under this part; and
(e) requires the business entity to submit to audits for verification of the tax creditclaimed.

Amended by Chapter 45, 2010 General Session