2023 Utah Code › Title 59 - Revenue and Taxation › Chapter 10 - Individual Income Tax Act › Part 11 - Refundable Tax Credit Act › Section 1113 - Refundable tax credit for nonrenewable hydrogen production system.

Effective 5/4/2022
59-10-1113.
Refundable tax credit for nonrenewable hydrogen production system.
(1) As used in this section:
(a) "Commercial enterprise" means the same as that term is defined in Section 59-7-626.
(b) "Commercial unit" means the same as that term is defined in Section 59-7-626.
(c) "Hydrogen production system" means the same as that term is defined in Section 59-7-626.
(d) "Office" means the Office of Energy Development created in Section 79-6-401.
(2)
(a) A claimant, estate, or trust may claim a refundable credit under this section if:
(i) the claimant, estate, or trust owns a hydrogen production system;
(ii) the hydrogen production system is completed and placed in service on or after January 1, 2022;
(iii) the claimant, estate, or trust sells as a commercial enterprise, or supplies for the claimant's, estate's, or trust's own use in commercial units, the hydrogen produced from the hydrogen production system;
(iv) the claimant, estate, or trust has not claimed and will not claim a tax credit under Section 59-10-1106 for electricity used to meet the requirements of this section; and
(v) the taxpayer obtains a written certification from the office in accordance with Subsection (3).
(b)
(i) Subject to Subsections (2)(b)(ii) and (iii), a tax credit under this section is equal to the product of:
(A) $0.12; and
(B) the number of kilograms of hydrogen produced during the taxable year.
(ii) A claimant, estate, or trust may not receive a tax credit under this section for more than 5,600 metric tons of hydrogen per taxable year.
(iii) A claimant, estate, or trust is eligible to claim a tax credit under this section for production occurring during a period of 48 months beginning with the month in which the hydrogen production system is placed in commercial service.
(3)
(a) Before a claimant, estate, or trust may claim a tax credit under this section, the claimant, estate, or trust shall obtain a written certification from the office.
(b) The office shall issue a claimant, estate, or trust a written certification if the office determines that:
(i) the claimant, estate, or trust meets the requirements of this section to receive a tax credit; and
(ii) the hydrogen production system with respect to which the claimant, estate, or trust seeks to claim a tax credit:
(A) has been completely installed; and
(B) is safe, reliable, efficient, and technically feasible to ensure that the hydrogen production system uses the state's nonrenewable energy resources in an appropriate and economic manner.
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the office may make rules for determining whether a hydrogen production system meets the requirements of Subsection (3)(b)(ii).
(d) A claimant, estate, or trust that obtains a written certification from the office shall retain the certification for the same time period a person is required to keep books and records under Section 59-1-1406.
(e) The office shall submit to the commission an electronic list that includes:
(i) the name and identifying information of each claimant, estate, or trust to which the office issues a written certification; and
(ii) for each claimant, estate, or trust:
(A) the amount of the tax credit listed on the written certification; and
(B) the date the hydrogen production system was installed.
(4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules to address the certification of a tax credit under this section.
(5) A tax credit under this section is in addition to any tax credits provided under the laws or rules and regulations of the United States.
Amended by Chapter 274, 2022 General Session