CSSB 31(RES): "An Act relating to a renewable energy production tax credit that may be claimed or applied against tax due under the Alaska Net Income Tax Act; and providing for an effective date."
00 CS FOR SENATE BILL NO. 31(RES) 01 "An Act relating to a renewable energy production tax credit that may be claimed or 02 applied against tax due under the Alaska Net Income Tax Act; and providing for an 03 effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 43.20.021(d) is amended to read: 06 (d) Where a credit allowed under the Internal Revenue Code is also allowed in 07 computing Alaska income tax, it is limited to 18 percent for corporations of the 08 amount of credit determined for federal income tax purposes that [WHICH] is 09 attributable to Alaska. This limitation does not apply to a special industrial incentive 10 tax credit under AS 43.20.042 or to a renewable energy production tax credit 11 under AS 43.20.046. 12 * Sec. 2. AS 43.20 is amended by adding a new section to article 1 to read: 13 Sec. 43.20.046. Renewable energy production tax credit. (a) An energy 14 producer that produces renewable energy may claim a renewable energy production
01 tax credit in the amount of 15 percent of the retail rate for each kilowatt-hour of 02 electricity charged by the energy producer, as determined by the Regulatory 03 Commission of Alaska; however, a tax credit may not be less than 2.1 cents for each 04 kilowatt-hour of renewable energy produced or more than five cents for each kilowatt- 05 hour of renewable energy produced. 06 (b) An energy producer may claim a renewable energy tax credit under this 07 section for each kilowatt-hour of renewable energy produced or sold for each of the 08 first five tax years after the date the capital investment used to produce renewable 09 energy is placed into service if the energy producer sells all or part of the energy 10 produced. 11 (c) A renewable energy tax credit under this section may be claimed only for a 12 capital investment 13 (1) to produce renewable energy that is placed into service on or after 14 July 1, 2009; or 15 (2) to expand production of renewable energy if the investment for 16 production expansion is made on or after July 1, 2009. 17 (d) An unused renewable energy tax credit under this section may be carried 18 forward and applied against the tax liability of the energy producer. 19 (e) A renewable energy tax credit provided under this section may be sold, 20 assigned, exchanged, conveyed, or otherwise transferred, in whole or in part. 21 (f) A taxpayer acquiring a renewable energy tax credit under (a) or (e) of this 22 section may use the tax credit or a portion of the tax credit to offset taxes imposed 23 under this chapter. Any portion of the credit not used may be used at a later time or 24 transferred under (e) of this section. 25 (g) A renewable energy tax credit acquired under (a) or (e) of this section, 26 when combined with any state aid that the energy producer receives for the capital 27 investment made to produce renewable energy for which the credit is acquired, may 28 not exceed 10 percent of the energy producer's capital investment for production of 29 renewable energy, aggregated over the five years within which the credit is allowed to 30 be claimed under (b) of this section. 31 (h) An energy producer that claims a renewable energy tax credit under this
01 section and that wishes to transfer the unused tax credit to a taxpayer under (e) of this 02 section may apply to the department for a transferable tax credit certificate. An 03 application under this subsection must be in a form prescribed by the department and 04 must include supporting information and documentation that the department 05 reasonably requires. The department shall grant or deny the tax credit certificate, or 06 grant the tax credit certificate as to a lesser amount than that for which application is 07 made and deny it as to the excess, not later than 120 days after it receives the 08 application. 09 (i) An energy producer that uses a renewable energy production tax credit to 10 offset the tax imposed by this chapter or transfers the credit under (e) of this section 11 may not also claim the federal renewable energy credit under 26 U.S.C. 45, authorized 12 by AS 43.20.021, for a capital investment associated with the production or expansion 13 of renewable energy that generated the credit under this section. 14 (j) The department shall 15 (1) prescribe an application form for a tax credit under this section; and 16 (2) adopt regulations necessary for the administration of this section. 17 (k) In this section, 18 (1) "capital investment" means an expenditure made 19 (A) as a cash expenditure or binding payment agreement for 20 real property or tangible personal property used in this state in the production 21 of renewable energy; and 22 (B) for an asset first placed in service for the production of 23 renewable energy in the state during or before the tax year in which the credit 24 is claimed; in this subparagraph, "placed in service for the production of 25 renewable energy in the state" means that the first use of the capital investment 26 is in this state; if the property on which the claim of the credit is based has 27 been used elsewhere in the tax year of acquisition and is brought to this state 28 during that year or a subsequent year, the property does not qualify as a capital 29 investment; 30 (2) "energy producer" means 31 (A) an electric utility or independent power producer holding a
01 certificate of public convenience and necessity under AS 42.05; or 02 (B) an independent power producer producing more than 100 03 kilowatts of electricity from renewable energy; 04 (3) "renewable energy" means geothermal, solar, hydroelectric, wind, 05 biomass, hydrokinetic or tidal, and wave energy. 06 * Sec. 3. AS 43.20.046 is repealed January 1, 2025. 07 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 08 read: 09 EXHAUSTION OF UNUSED RENEWABLE ENERGY PRODUCTION TAX 10 CREDITS. Notwithstanding the repeal of AS 43.20.046 by sec. 3 of this Act, an unused 11 portion of a tax credit acquired under AS 43.20.046(a) or (e), enacted by sec. 2 of this Act, 12 may be carried forward until exhausted, except that the unused portion of the tax credit may 13 not be carried forward to tax years beginning after December 31, 2025. 14 * Sec. 5. This Act takes effect January 1, 2010.