Page 1, between lines 1 and 2,
insert:
"Section 1. Title
41, chapter 10, article 1, Arizona Revised Statutes, is amended by adding
section 41-1520, to read:
START_STATUTE41-1520. International operations center; utility relief;
definitions
A. From and after June 30, 2015, utility relief
is allowed for the owner or operator of an international operations center that
is certified pursuant to this section.
B. To qualify for the utility relief, the owner
or operator must submit to the authority an application in a form prescribed by
the authority that includes all of the following:
1. The owner's or operator's name, address and
telephone number.
2. The address of the site where the facility is
or will be located, including, if applicable, information sufficient to
identify the specific portion or portions of the facility comprising the
international operations center.
C. Within sixty days after receiving a complete
and correct application, the authority shall review the application and either
issue a written certification that the international operations center
qualifies for the utility relief or provide written reasons for its denial. A
failure to approve or deny the application within sixty days after the date of
submittal constitutes certification of the international operations center, and
the authority shall issue written certification to the owner or operator within
fourteen days. The authority shall send a copy of the certification to the
department of revenue.
D. The owner or operator of the international
operations center must achieve both of the following investment requirements
after taking into account the combined investments made by the owner or
operator:
1. A minimum annual investment of one hundred
million dollars in new capital assets, including costs of land, buildings and
international operations center equipment in each of ten consecutive taxable
years of the owner or operator. Investments greater than one hundred million dollars
in any taxable year may be carried forward as a credit toward the investment
requirement in future years.
2. On or before the tenth anniversary of
certification, a minimum investment of at least one billion two hundred fifty
million dollars in new capital assets, including costs of land, buildings and
international operations center equipment.
E. Within thirty days after the end of each
taxable year following certification, and the tenth anniversary of
certification, the owner or operator shall furnish the authority written
information demonstrating whether the certified international operations center
has or has not satisfied the investment requirements prescribed in subsection D
of this section. Until the investment requirements prescribed in subsection D
of this section are met, the owner or operator shall keep detailed records of
all capital investment in the international operations center, including costs
of land, buildings and international operations center equipment, and all
utility relief directly received by the owner or operator.
F. If the authority determines that the
requirements of this section have not been satisfied, the authority may revoke
the certification of the international operations center and notify the
department of revenue in writing. The owner or operator may appeal the
revocation. The authority may give special consideration or allow a temporary
exception if there is extraordinary hardship due to factors beyond the owner's
or operator's control. If certification is revoked, the department of revenue
shall order the owner or operator to forfeit further entitlement to utility
relief. If the owner or operator fails to make a minimum capital investment of
one hundred million dollars in a taxable year, taking into account any excess
investment amounts carried forward from previous years, the owner or operator
may avoid revocation of its certification by paying to the department of
revenue within sixty days after the end of the taxable year the amount of the
utility relief provided pursuant to this section in that year.
G. The authority and the department of revenue
shall prescribe forms and procedures as necessary for the purposes of this
section.
H. Proprietary business information contained in
the application form described in subsection B of this section and the written
notice described in subsection F of this section are confidential and may not
be disclosed to the public, except that the information shall be transmitted to
the department of revenue. The authority or the department of
revenue may disclose the name of an international operations center that has
been certified pursuant to this section.
I. Except as provided in subsection F of this
section, on certification, the international operations center remains certified
unless ownership of the international operations center is sold, conveyed,
transferred or otherwise directly or indirectly disposed of to another entity
in which the original owner holds less than a controlling interest. For the
purposes of this subsection, "controlling interest" means at least
eighty percent of the voting shares of a corporation or of the interests in a
noncorporate entity.
J. An owner or operator may be comprised of a
single entity or affiliated entities.
K. For the purposes of this section:
1. "International operations center"
means a facility that is subject to the investment thresholds under subsection
D of this section and that self-consumes renewable energy from a qualified
facility pursuant to section 43-1083.04, subsection C or section 43-1164.05,
subsection C.
2. "Utility relief" means the
mitigation of the tax burden on the retail purchaser of electricity or natural
gas through the application of section 42-5063, subsection C, paragraph 7,
section 42-5159, subsection G, paragraph 2 and section 42-6012, paragraph 2."END_STATUTE
Renumber to conform
Page 2, line 24, after the first
"operations" strike remainder of line
Line 26, after
"operations" strike remainder of line
Line 27, strike "operations center"
Strike lines 33 through 37
Reletter to conform
Page 3, between lines 2 and 3,
insert:
"7. Gross proceeds of sales or gross income
derived from sales of electricity or natural gas to a business that operates an
international operations center in this state and that is certified by the
Arizona commerce authority pursuant to section 41-1520."
Page 15, line 43, after
"by" insert ":
1."
Line 44, after the first
"operations" strike remainder of line
Page 16, line
1, after "operations" strike remainder of line
Line 2,
strike "operations center";
strike "subsection" insert "paragraph"
Line 3, strike
"subsection" insert "paragraph"
Line 4, strike "1." insert
"(a)"
Strike lines 8 through 12
Line 13, strike "3."
insert "(b)"
Line 19, strike "4." insert
"(c)"
Line 21, strike "5."
insert "(d)"
Between lines 22 and 23, insert:
"2. A business that operates an international
operations center in this state and that is certified by the Arizona commerce
authority pursuant to section 41-1520."
Line 40, strike ";
definitions"
Line 41, strike "A."
Line 45, after "to" insert
"either of the following
businesses:
1."
Page 17, line 3, strike ", or an international operations center,"
Line 4, strike
"subsection" insert "paragraph"
Line 5, strike "B.";
strike "section" insert "paragraph"
Line 6, strike "1." insert
"(a)"
Strike lines 10 through 14
Line 15, strike "3."
insert "(b)"
Line 21, strike "4."
insert "(c)"
Between lines 22 and 23, insert:
"2. Businesses that operate an international
operations center in this state and that are certified by the Arizona commerce
authority pursuant to section 41-1520."
Line 31, after "or" insert "for"
Line 32, after "B." insert
"If the power is generated
primarily for the purposes of the taxpayer's manufacturing facility,"
Line 34, strike "three one"
insert "three"
Line 38, after "or" insert
"by"
Line 39, strike "At least ninety" insert "At least
ninety"; strike "A portion"
insert "percent"
Page 18, line 1, strike "at least ninety" insert
"at least ninety"; strike "a portion" insert "percent"
Line 3, after
"manufacturing" strike remainder of line
Page 18, line 4, strike "operations center"
Line 6, after
"manufacturer" strike remainder of line
Line 7, strike "center"
Between lines 7 and 8, insert:
"C. If the power is generated primarily for the
purposes of the taxpayer's international operations center, the taxpayer is
eligible for the credit if all of the following apply:
1. The taxpayer invests at least one hundred
million dollars in one or more new renewable energy facilities in this state
that produce energy for self‑consumption using renewable energy
resources. The minimum investment must be completed within a
three-year period beginning on the date the initial application is received or
by December 31, 2018, whichever is earlier.
2. A portion of the energy produced at each
renewable energy facility is used for self‑consumption in this
state. By the fifth year a renewable energy facility is in
operation, at least fifty-one percent of the energy produced must be used for
self-consumption in this state. Self‑consumption includes the
power used by related entities if the related entities are directly or
indirectly under the same ownership interests that collectively own more than
eighty percent. Power that a renewable energy facility transfers to
a utility qualifies as self‑consumption if the utility is the same
utility that provides power to the owner's international operations center in
this state.
3. The power that is used for self-consumption
under paragraph 2 of this subsection is used for an international operations
center in this state. A lessor of an international operations center facility
that uses power for self-consumption under paragraph 2 of this subsection
satisfies the requirements of this paragraph if the lessee is an international
operations center and the power is transferred as part of the lease to the
lessee."
Reletter to conform
Line 8, strike "F" insert
"G"
Line 11, after the period insert
"if a taxpayer uses the power
generated by the renewable energy facility in the taxpayer's international
operations center, the taxpayer, including all affiliates of the taxpayer, may
not cumulate tax credits under this section over different taxable years
exceeding, in the aggregate, twenty-five million dollars."
Line 13, strike "M" insert
"N"
Page 18, line 31, strike the second
"a" insert
"the"
Line 32, after "facility"
insert ", as required by
subsection B, paragraph 2 or subsection C, paragraph 2 of this section,"
Line 33, after "operations" insert "center"
Lines 35, 43 and 45, strike
"E" insert "F"
Page 19, line 12, strike
"E" insert "F"
Lines 13 and 14, strike
"F" insert "G"
Line 17, strike "E" insert
"F"
Line 19, strike "one"
Line 20, strike "hundred
million dollar"; after "1" insert "or subsection C, paragraph 1"
Line 25, strike "a" insert "the required"
Line 26, after
"self-consumption" insert "as required by subsection B, paragraph 2 or subsection C,
paragraph 2 of this section"
Between lines 26 and 27, insert:
"3. Certification from the Arizona commerce
authority pursuant to section 41‑1520."
Line 29, strike "F" insert
"G"
Line 38, after the period insert
"If the taxpayer is the owner or
operator of an international operations center, the taxpayer must submit the
request for final certification for each of the renewable energy facilities for
which capital investment will be claimed towards the required investment
threshold and must submit additional evidence to the department within sixty
days after the end of the fifth year of operation of each facility that the requirements
of subsection C, paragraph 2 of this section have been met."
Strike lines 39 through 45, insert:
"K. If the taxpayer fails to make the required
investment in renewable energy facilities within the time period required by
subsection B, paragraph 1 or subsection C, paragraph 1 of this section or if
the certification of an international operations center has been revoked under
section 41-1520 due to a failure to make a one billion two hundred fifty
million dollar investment in the center within ten years after certification or
if the taxpayer fails to receive final certification of the credit under
subsection J of this section, the taxpayer shall not be eligible and must cease
claiming any further credits under this section and shall reimburse the amount
of all credits previously received under this section. The reimbursement must
be made on the taxpayer's income tax return for the taxable year in which it is
first known that the required investment would not be made within the required
time or the taxable year in which the certification was revoked. The
department may give special consideration or allow a temporary exemption from
reimbursement if there is extraordinary hardship due to factors beyond the
taxpayer's control. If the reimbursement is due to revocation of the
certification of an international operations center due to a failure to invest
one billion two hundred fifty million dollars in the center within ten years
after certification, the credits shall be reimbursed in inverse proportion to
the total capital investment made in the international operations center
divided by one billion two hundred fifty million dollars. The department may
require reimbursement before the tenth anniversary of certification of an
international operations center if the facility has been closed or relocated or
the taxpayer has otherwise demonstrated that the one billion two hundred fifty
million dollar investment will not be timely made."
Page 20, strike lines 44 and 45
Page 21, strike lines 1 and 2,
insert:
"2. "International operations center"
means a facility that is certified by the Arizona commerce authority pursuant
to section 41-1520."
Line 24, after "or" insert "for"
Line 25, after "B." insert
"If the power is generated
primarily for the purposes of the taxpayer's manufacturing facility,"
Line 27, strike "three one"
insert "three"
Line 32, strike "At least ninety" insert "At least
ninety"; strike "A portion"
insert "percent"
Line 38, strike "at least ninety" insert "at least
ninety"; strike "a portion"
insert "percent"
Line 40, after
"manufacturing" strike remainder of line
Line 41, strike "operations center"
Line 43, after
"manufacturer" strike remainder of line
Line 44, strike "center"
After line 44, insert:
"C. If the power is generated primarily for the
purposes of the taxpayer's international operations center, the taxpayer is
eligible for the credit if all of the following apply:
1. The taxpayer invests at least one hundred
million dollars in one or more new renewable energy facilities in this state
that produce energy for self‑consumption using renewable energy
resources. The minimum investment must be completed within a
three-year period beginning on the date the initial application is received or
by December 31, 2018, whichever is earlier.
2. A portion of the energy produced at each
renewable energy facility is used for self‑consumption in this
state. By the fifth year a renewable energy facility is in
operation, at least fifty-one percent of the energy produced must be used for
self-consumption in this state. Self‑consumption includes the
power used by related entities if the related entities are directly or
indirectly under the same ownership interests that collectively own more than
eighty percent. Power that a renewable energy facility transfers to
a utility qualifies as self‑consumption if the utility is the same
utility that provides power to the owner's international operations center in
this state.
3. The power that is used for self-consumption
under paragraph 2 of this subsection is used for an international operations
center in this state. A lessor of an international operations center facility
that uses power for self-consumption under paragraph 2 of this subsection
satisfies the requirements of this paragraph if the lessee is an international
operations center and the power is transferred as part of the lease to the
lessee."
Reletter to conform
Page 22, line 1, strike
"F" insert "G"
Line 4, after the period insert
"if a taxpayer uses the power
generated by the renewable energy facility in the taxpayer's international
operations center, the taxpayer, including all affiliates of the taxpayer, may
not cumulate tax credits under this section over different taxable years
exceeding, in the aggregate, twenty-five million dollars."
Line 6, strike "M" insert
"N"
Line 24, strike the second "a" insert "the"
Line 25, after "facility"
insert ", as required by
subsection B, paragraph 2 or subsection C, paragraph 2 of this section,"
Line 26, after "operations" insert "center"
Lines 28, 36 and 38, strike
"E" insert "F"
Page 23, line
5, strike "E" insert "F"
Lines 6 and
7, strike "F" insert "G"
Line 10, strike "E" insert
"F"
Line 12, strike "one"
Page 23, line
13, strike "hundred million dollar"; after "1" insert
"or subsection C, paragraph 1"
Line 18, strike "a" insert "the required"
Line 19, after
"self-consumption" insert "as required by subsection B, paragraph 2 or subsection C,
paragraph 2 of this section"
Between lines 19 and 20, insert:
"3. Certification from the Arizona commerce
authority pursuant to section 41‑1520."
Line 22, strike "F" insert
"G"
Line 31, after the period insert
"If the taxpayer is the owner or
operator of an international operations center, the taxpayer must submit the
request for final certification for each of the renewable energy facilities for
which capital investment will be claimed towards the required investment
threshold and must submit additional evidence to the department within sixty
days after the end of the fifth year of operation of each facility that the
requirements of subsection C, paragraph 2 of this section have been met."
Strike lines 32 through 38, insert:
"K. If the taxpayer fails to make the required
investment in renewable energy facilities within the time period required by
subsection B, paragraph 1 or subsection C, paragraph 1 of this section or if
the certification of an international operations center has been revoked under
section 41-1520 due to a failure to make a one billion two hundred fifty
million dollar investment in the center within ten years after certification or
if the taxpayer fails to receive final certification of the credit under
subsection J of this section, the taxpayer shall not be eligible and must cease
claiming any further credits under this section and shall reimburse the amount
of all credits previously received under this section. The reimbursement must
be made on the taxpayer's income tax return for the taxable year in which it is
first known that the required investment would not be made within the required
time or the taxable year in which the certification was revoked. The
department may give special consideration or allow a temporary exemption from
reimbursement if there is extraordinary hardship due to factors beyond the
taxpayer's control. If the reimbursement is due to revocation of the
certification of an international operations center due to a failure to invest
one billion two hundred fifty million dollars in the center within ten years
after certification, the credits shall be reimbursed in inverse proportion to the
total capital investment made in the international operations center divided by
one billion two hundred fifty million dollars. The department may require
reimbursement before the tenth anniversary of certification of an international
operations center if the facility has been closed or relocated or the taxpayer
has otherwise demonstrated that the one billion two hundred fifty million
dollar investment will not be timely made."
Page 24,
strike lines 36 through 39, insert:
"2. "International operations
center" means a facility that is certified by the Arizona commerce
authority pursuant to section 41-1520."
Page 25, after line 7, insert:
"Sec. 7. Effective date; retroactivity
A. Sections 42-5063,
42-5159 and 42-6012, Arizona Revised Statutes, as amended by this act, are
effective from and after the last day of the month of the general effective
date of the fifty-second legislature, first regular session.
B. Sections 43-1083.04
and 43-1164.05, Arizona Revised Statutes, as amended by this act, apply retroactively
to taxable years beginning from and after December 31, 2014."
Amend title to conform
Bill
Number: S.B. 1468