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Energy:
Tax Amendments
Our Position: support
Bill Number: sb223s2
Sponsor: Sen Wayne Niederhauser (R-Sandy)
Legislative Session: 2007 General Session
On February 26th, the second substitute of this bill was offered that included the extension of the renewable energy tax credit.
Status
This bill was the main tax cut and tax reform bill--a veritable omnibus--so it was popular and had plenty of momentum. After Second Subtitute Senate Bill 223 (SB223S2) replaced the first substitute on February 26th, it moved quickly. It passed with only 2 votes against it in either chamber. Those nay votes were cast for reasons other than the renewable energy tax credit.
Action Needed
The second substitute moved quickly after February 26th. It now awaits the governor's signature.
Background
This bill includes most of the features of Sen Howard Stephenson's bill, SB 13. It includes wind, solar, geothermal, hydroelectric and biomass.
The business tax credit for commercial systems will now be calculated based on electrical output of the system over the first 4 years of operation. The business credits may be taken over a maximum of 4 years if the taxable amount owed in any one year is less than the amount of the credit.
It also directs the Tax Review Commission to study the credit's effectiveness before the expiration in 2012 and every five years afterward, if it's extended. A floor amendment was approved that implements the credits in most cases as of 1 January 2007 rather than 1 January 2008.
Although there was discussion of converting the income tax credit available to individuals for residential renewable energy systems into a sales tax refund instead, that change was not made. The residential credit remains an income tax credit available for up to 25% of the cost for a maximum of $2,000.
Read the amended version of the bill.
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