2023 Utah Code › Title 11 - Cities, Counties, and Local Taxing Units › Chapter 58 - Utah Inland Port Authority Act › Part 2 - Utah Inland Port Authority › Section 208 - New aviation fuel incentive -- Requirements.

Effective 5/3/2023
11-58-208.
New aviation fuel incentive -- Requirements.
(1) As used in this section:
(a) "Aviation fuel" means fuel that is:
(i) used by a carrier; and
(ii) subject to an aviation fuel tax under Title 59, Chapter 13, Part 4, Aviation Fuel.
(b) "Aviation fuel incentive" means a grant awarded by the authority to a qualifying carrier from the incentive account as provided in this section.
(c) "Aviation fuel project" means a project for the development of facilities in the state to increase the production of aviation fuel.
(d) "Base production year" means the fiscal year designated by the authority under Subsection (3).
(e) "Carrier" means a federally certificated air carrier, as defined in Section 59-13-102.
(f) "Commission" means the State Tax Commission.
(g) "Incentive account" means an account that the authority establishes and maintains under Subsection (4) and from which the authority pays an aviation fuel incentive.
(h) "Incentive year" means any of the first 10 consecutive fiscal years immediately following the base production year.
(i) "New aviation fuel" means the quantity of aviation fuel produced by a refinery during an incentive year that exceeds the quantity of aviation fuel produced by the refinery during the base production year.
(j) "Qualifying carrier" means a carrier that meets the requirements of Subsection (4).
(k) "Refinery" means the same as that term is defined in Section 79-6-701.
(2) As provided in this section, the authority may award a grant of up to $1,000,000 per incentive year from the incentive account to a carrier that the authority determines to be a qualifying carrier.
(3) The authority shall designate as the base production year the fiscal year that the authority determines to be the fiscal year that precedes the first fiscal year during which new aviation fuel is expected to be produced.
(4)
(a) The authority shall establish and maintain an account for the deposit of money under Section 59-5-121 and for the authority's payment of aviation fuel incentives under this section.
(b) The authority shall maintain and account for money in the account described in Subsection (4)(a) separate from all other money of the authority.
(5) A carrier that seeks to be awarded an aviation fuel incentive for a fiscal year shall:
(a) submit to the authority an application that meets the requirements of Subsection (6); and
(b) demonstrate to the authority's satisfaction that:
(i) a refinery from which the carrier purchases aviation fuel has invested at least $5,000,000 since May 3, 2023 in an aviation fuel project; and
(ii) due to the aviation fuel project, the refinery, during an incentive year:
(A) has produced at least 4,500,000 gallons more aviation fuel for use by carriers in the state than the refinery produced during the base production year; and
(B) has not produced less gas and diesel fuel than the refinery produced during the base production year.
(6)
(a) An application under Subsection (5) shall include information that the authority determines to be relevant to the authority's determination of whether the carrier qualifies for an aviation fuel incentive, including:
(i) for the application for the first incentive year that the carrier submits an application under this section:
(A) the amount of the refinery's investment in an aviation fuel project; and
(B) the quantity of aviation fuel and gas and diesel fuel produced by the refinery during the base production year;
(ii) the quantity of aviation fuel and gas and diesel fuel produced by the refinery during the applicable incentive year; and
(iii) verification that the new aviation fuel was produced for use by a carrier in the state.
(b) An application under Subsection (5) shall be submitted to the authority before a deadline established by the authority.
(c) Multiple carriers may not rely on the same refinery to support the carriers' applications for an aviation fuel incentive.
(7)
(a) A carrier may receive an aviation fuel incentive for no more than 15 consecutive incentive years.
(b) The maximum cumulative amount a carrier may receive as an aviation fuel incentive is $10,000,000 or one-third of the amount the refineries represented in the carrier's applications invested in an aviation fuel project, whichever is less.
(c) The authority may not award aviation fuel incentives in excess of the amount that the Division of Finance deposits into the incentive account under Section 59-5-121.
(d) If more than one carrier qualifies for an aviation fuel incentive in an incentive year, the authority shall prorate money granted to qualifying carriers based on the percentage of new aviation fuel produced by the refineries represented in a carrier's application as compared to the total amount of new aviation fuel produced by all refineries represented in the applications of all qualifying carriers.
(8)
(a) For purposes of determining whether a carrier meets the requirements to be a qualifying carrier, the authority may require a carrier that submits an application for an aviation fuel incentive to provide the authority with a document that expressly directs and authorizes the commission to disclose to the authority the carrier's returns and other information that would otherwise be subject to confidentiality under Section 59-1-403 or Section 6103, Internal Revenue Code.
(b) Upon the commission's receipt of a document described in Subsection (8)(a), the commission shall provide the authority with the returns and other information requested by the authority that the document directs and authorizes the commission to provide to the authority.
(9) The authority may adopt a policy establishing:
(a) the application and reporting criteria for a carrier to receive an aviation fuel incentive under this section; and
(b) procedures for establishing the base production year.
(10)
(a) Within 90 days after the end of the 15th fiscal year after the base production year, the authority shall pay to the Division of Finance all money in the account that the port authority has not awarded by grant under this section.
(b) Any money that the authority pays to the Division of Finance under Subsection (10)(a) is considered to be severance tax revenue collected under Section 59-5-102 in the fiscal year during which the authority pays the money to the Division of Finance.
Enacted by Chapter 537, 2023 General Session