Refundable tax credit for nonrenewable hydrogen production system

# (1)

As used in this section:

# (a)

"Commercial enterprise" means an entity, the purpose of which is to produce hydrogen for sale from a hydrogen production system.

# (b)

"Commercial unit" means a building or structure that an entity uses to transact business.

# (c)

"Hydrogen production system" means a system of apparatus and equipment, located in this state, that produces hydrogen from nonrenewable sources.

# (d)

"Office" means the Office of Energy Development created in Section 79-6-401.

# (2)

# (a)

A taxpayer may claim a refundable credit under this section if:

(i) the taxpayer owns a hydrogen production system;

(ii) the hydrogen production system is completed and placed in service on or after January 1, 2022;

(iii) the taxpayer sells as a commercial enterprise, or supplies for the taxpayer's own use in commercial units, the hydrogen produced from the hydrogen production system;

(iv) the taxpayer has not claimed and will not claim a tax credit under Section 59-7-614 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 taxpayer may not receive a tax credit under this section for more than 5,600 metric tons of hydrogen per taxable year.

(iii)
A taxpayer 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 taxpayer may claim a tax credit under this section, the taxpayer shall obtain a written certification from the office.

# (b)

The office shall issue a taxpayer a written certification if the office determines that:

(i) the taxpayer meets the requirements of this section to receive a tax credit; and

(ii) the hydrogen production system with respect to which the taxpayer 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 taxpayer 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 taxpayer to which the office issues a written certification; and

(ii) for each taxpayer:

(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.