R362-2-16. Granting of Production Tax Credits

  (A) In order for a company to be granted production tax credits on a return filed under Chapter 59, Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act, OED must validate the amount of tax credits the company may claim for each commercial energy system. In order to claims to be validated, the company must submit to OED information regarding the following:

  1. The date that the commercial energy system first entered commercial service;

  2. The beginning and ending dates of the company's tax year;

  3. The number of kilowatt hours produced by the system that were sold or used during the company's tax year and that were also used or sold within the system's production tax credit window.

  All such information will be provided on a standard claim form created by OED.

  (B) For purposes of validating the number of kilowatt hours sold, the company should also submit to OED invoices or other information that documents that number of kilowatt hours of electricity sold.

  (C) For purposes of validating the number of kilowatt hours produced and used, the company should submit monthly readings from the meter used to measure the net output of the commercial energy system. OED will retain the right to site inspect the system and meter to validate that the readings provided are true and accurate.

  (D) Once it has received a production tax credit claim from a company, OED will make a determination as to:

  1. Whether the information provided conforms with this rule and is complete;

  2. Whether the number of kilowatt hours claimed appears to be feasible and accurate;

  3. The number of kilowatts deemed to be valid;

  4. The amount of tax credit that the company may claim on its corporate income tax return. This amount will equal 0.35 cents per each validated kilowatt hour of electricity used or sold during the company's tax year and within the systems production tax credit window.

  (E) A company claiming a production tax credit must submit the information specified above to OED on or before the date the tax return on which the credit is claimed is required to be filed with the State Tax Commission. Once OED has received complete information necessary to validate a production tax credit claim, it will provide to the company a completed validation form (to be created by either OED or the Utah State Tax Commission) within thirty days. The form will specify the validated number of kilowatt hours that are eligible for credit and the amount (in dollars) of production tax credits that the company may claim for the commercial energy system for that tax year.

  (F) If OED denies, in whole or in part, an application for a tax credit, the taxpayer applicant may, consistent with Section 63G-4-301 (Administrative Procedures Act), request that the decision be reviewed by the OED manager. If, after review by the manager, the taxpayer desires a further appeal, he or she may request reconsideration of the decision by the director of OED, consistent with Section 63G-4-302.

  (G) Information submitted by an applicant under this section for validating a production tax credit claim will be classified as protected information under UC 63G-2-305)(1) and/or UC 63G-2-305(2) when the applicant provides OED with a written claim of confidentiality and a concise statement supporting the claim, consistent with UC 63G-2- 309(1)(a)(i). OED shall provide the opportunity to make such a claim on the standard form referenced in subsection (A) above.