Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 234 (2025GS)

Sponsor

Sen. Owens, Derrin R.

Final action

Governor Signed 3/24/2025

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• repeals and reenacts the severance tax credit for mining exploration to create an agreement and post-performance certificate process;
• schedules the repeal of the severance tax credit for mining exploration but requires legislative review before the repeal;
• authorizes a taxpayer to claim the high cost infrastructure tax credit against severance tax liability instead of income tax liability;
• allows a taxpayer to claim the high cost infrastructure credit against severance tax liability during the 2025 taxable year for costs incurred during the 2024 taxable year;
• creates a new severance tax credit part and moves existing tax credits to the new part;
• addresses federal agency consultation before certain acts related to federal designations and minerals; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

101
40-6-16
40-6-24
59-5-101
59-5-102
59-5-301
59-5-302
59-5-303
59-5-216
59-5-305
59-7-619
59-10-1034
63I-1-240
63I-1-259
63L-2-202
79-6-401
79-6-602
79-6-603
79-6-604
0
Severance Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Derrin R. Owens
House Sponsor: Carl R. Albrecht
LONG TITLE
General Description:
This bill modifies provisions relating to severance of oil, gas, and minerals.
Highlighted Provisions:
This bill:
repeals and reenacts the severance tax credit for mining exploration to create an 
agreement and post-performance certificate process;
schedules the repeal of the severance tax credit for mining exploration but requires 
legislative review before the repeal;
authorizes a taxpayer to claim the high cost infrastructure tax credit against severance tax 
liability instead of income tax liability;
allows a taxpayer to claim the high cost infrastructure credit against severance tax 
liability during the 2025 taxable year for costs incurred during the 2024 taxable year;
creates a new severance tax credit part and moves existing tax credits to the new part;
addresses federal agency consultation before certain acts related to federal designations 
and minerals; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides retrospective operation.
Utah Code Sections Affected:
AMENDS:
40-6-16
, 
Effective 
05/07/25
 as last amended by Laws of Utah 2024, Chapter 190
59-5-101
, 
Effective 
05/07/25
Applies beginning 
01/01/25
 as last amended by Laws of 
Utah 2009, Chapter 344
59-5-102
, 
Effective 
05/07/25
Applies beginning 
01/01/25
 as last amended by Laws of 
Utah 2021, Chapter 280
59-7-619
, 
Effective 
05/07/25
Applies beginning 
01/01/25
 as last amended by Laws of 
Utah 2023, Chapter 473
59-10-1034
, 
Effective 
05/07/25
Applies beginning 
01/01/25
 as last amended by Laws 
of Utah 2021, Chapters 64, 280 and last amended by Coordination Clause, Laws of Utah 2021, 
Chapter 280
63I-1-240
, 
Effective 
05/07/25
 as last amended by Laws of Utah 2024, Chapters 34, 385
63I-1-259
, 
Effective 
05/07/25
 as last amended by Laws of Utah 2024, Third Special 
Session, Chapter 5
79-6-401
, 
Effective 
05/07/25
Applies beginning 
01/01/25
 as last amended by Laws of 
Utah 2024, Third Special Session, Chapter 4
79-6-602
, 
Effective 
05/07/25
Applies beginning 
01/01/25
 as last amended by Laws of 
Utah 2024, Chapter 192
79-6-603
, 
Effective 
05/07/25
Applies beginning 
01/01/25
 as last amended by Laws of 
Utah 2024, Chapter 44
79-6-604
, 
Effective 
05/07/25
Applies beginning 
01/01/25
 as last amended by Laws of 
Utah 2022, Chapter 44
ENACTS:
59-5-301
, 
Effective 
05/07/25
Applies beginning 
01/01/25
 Utah Code Annotated 
1953
59-5-302
, 
Effective 
05/07/25
Applies beginning 
01/01/25
 Utah Code Annotated 
1953
59-5-303
, 
Effective 
05/07/25
Applies beginning 
01/01/25
 Utah Code Annotated 
1953
59-5-305
, 
Effective 
05/07/25
Applies beginning 
01/01/25
 Utah Code Annotated 
1953
63L-2-202
, 
Effective 
05/07/25
 Utah Code Annotated 1953
REPEALS AND REENACTS:
40-6-24
, 
Effective 
05/07/25
Applies beginning 
01/01/25
 as enacted by Laws of Utah 
2022, Chapter 108
RENUMBERS AND AMENDS:
59-5-304
, 
Effective 
05/07/25
Applies beginning 
01/01/25
 (Renumbered from 
59-5-216, as enacted by Laws of Utah 2022, Chapter 108)
Be it enacted by the Legislature of the state of Utah:
Section 1, Section 
40-6-16
 is amended to read:
40-6-16
Effective 
05/07/25
. Duties of division.
In addition to the duties assigned by the board, the division shall:
(1)
develop and implement an inspection program that will include production data, 
pre-drilling checks, and site security reviews;
(2)
publish a monthly production report;
(3)
publish a monthly gas processing plant report;
(4)
review and evaluate, before a hearing, evidence submitted with the petition to be 
presented to the board;
(5)
require adequate assurance of approved water rights in accordance with rules and orders 
enacted under Section 
40-6-5
;
(6)
notify the county executive of the county in which the drilling will take place in writing 
of the issuance of a drilling permit;
(7)
complete the verification of natural gas to hydrogen conversion plants required by 
Section 
59-5-102
59-5-303
;
(8)
enter agreements and 
issue tax credit certificates in accordance with Section 
40-6-24
; 
and
(9)
through the division's director, implement Title 19, Chapter 12, Pollution Control Act.
Section 2, Section 
40-6-24
 is repealed and re-enacted to read:
40-6-24
Effective 
05/07/25
Applies beginning 
01/01/25
. Tax credit for mining 
exploration -- Division to issue certificates.
(1)
As used in this section:
(a)
"Activity" means:
(i)
surveying by a geophysical method or by a geochemical method;
(ii)
drilling one or more exploration holes;
(iii)
conducting underground exploration;
(iv)
surface trenching or bulk sampling;
(v)
taking aerial photographs;
(vi)
geological and geophysical logging;
(vii)
sample analysis; or
(viii)
metallurgical testing.
(b)
"Assigned tax credit certificate" means a tax credit certificate the division issues to a 
person to which a claimant assigns the claimant's tax credit.
(c)
(i)
"Certified expenditure" means a cost incurred for an activity in direct support of 
an eligible exploration activity conducted at a specific site.
(ii)
"Certified expenditure" includes:
(A)
the cost of obtaining an approval, a permit, a license, or a certificate for an 
eligible exploration activity;
(B)
a direct labor cost and the cost of benefits for employees directly associated 
with work described in Subsection (1)(c)(i);
(C)
the cost of leasing equipment from a third party;
(D)
the cost of owning, maintaining, or operating equipment;
(E)
insurance and bond premiums associated with the activities described in 
Subsections (1)(c)(ii)(A) through (D);
(F)
the cost of a consultant or an independent contractor; and
(G)
any general expense related to operating the business engaged in the eligible 
exploration activity to the extent the expense is directly attributable to the work 
described in Subsection (1)(c)(i).
(iii)
"Certified expenditure" does not include:
(A)
return on investment; or
(B)
insurance or bond premiums not described in Subsection (1)(c)(ii)(E).
(d)
(i)
"Claimant" means a person that:
(A)
is engaged in the business of mining or extracting minerals;
(B)
is subject to a severance tax, for the taxable year in which the person applies 
for a tax credit certificate, under Title 59, Chapter 5, Part 2, Mining Severance 
Tax, as a direct result of minerals produced from eligible exploration activities; 
and
(C)
makes a certified expenditure.
(ii)
"Claimant" does not include a person in the business of mining or extracting 
minerals on the Great Salt Lake from:
(A)
the brines of the Great Salt Lake, except for a person using a nonevaporative 
mining or extraction method; or
(B)
a material or secondary source, including tails, slag, waste dumps, or another 
similar secondary source, derived from the brines of the Great Salt Lake.
(e)
"Eligible claimant" means a claimant or a person to which a claimant assigns a tax 
credit in accordance with Subsections (4)(a)(vi) and (7).
(f)
"Eligible exploration activity" means an activity performed in the state that is 
associated with:
(i)
producing a mineral from a natural deposit that is not part of a mine that exists at 
the time the activity begins;
(ii)
producing a mineral not under production within a mine that exists at the time the 
activity begins;
(iii)
recovering a mineral not under production from a secondary source at the time 
the activity begins, including tails, slag, waste dumps, or another similar 
secondary source, whether in solution or otherwise;
(iv)
expanding production of a mineral using a mining method not used within a mine 
that exists at the time the activity begins; or
(v)
expanding existing production of a mineral that requires a new exploration or 
mining permit or the modification of a permit issued before the activity begins.
(g)
"Geochemical method" means a method of gathering geochemical data, including 
collecting soil, rock, water, air, vegetation, or any other similar item and performing 
a chemical analysis on the item.
(h)
"Geophysical method" means a method of gathering geophysical data that is used in 
mineral exploration, including seismic, gravity, magnetic, radiometric, radar, 
electromagnetic, and other remote sensing measurements.
(i)
"Mine" means the same as that term is defined in Section 
59-5-201
.
(j)
"Mineral" means:
(i)
a metalliferous mineral as defined in Section 
59-5-201
; or
(ii)
a metalliferous compound as defined in Section 
59-5-202
.
(k)
"Tax credit certificate" means a certificate the division issues that:
(i)
lists the claimant's name and taxpayer identification number;
(ii)
lists the amount of the claimant's tax credit authorized under this section for a 
taxable year; and
(iii)
includes other information as determined by the division.
(2)
Before claiming a tax credit under Section 
59-5-304
, a person shall apply to the division 
to enter an agreement and, upon becoming an eligible claimant, to receive a tax credit 
certificate.
(3)
(a)
Except as provided in Subsection (3)(b), a person shall enter an agreement with 
the division before beginning eligible exploration activities.
(b)
A person that has certified expenditures from an eligible exploration activity for a 
taxable year beginning on or after January 1, 2025, and beginning before January 1, 
2026, shall enter an agreement with the division as provided by rule.
(4)
(a)
The agreement shall provide:
(i)
the eligible exploration activities for which the person may incur certified 
expenditures eligible to receive a tax credit certificate, which may include 
certified expenditures from a taxable year beginning on or after January 1, 2025, 
and beginning before January 1, 2027;
(ii)
the type of mineral the person intends to produce;
(iii)
the maximum number of years a person has between the beginning of eligible 
exploration activities and the production of minerals as a direct result of the 
eligible exploration activities;
(iv)
the maximum number of years, which may not exceed 20 years, that a person 
may receive a tax credit certificate;
(v)
the requirements for reporting certified expenditures and production of minerals 
as a direct result of eligible exploration activity, including:
(A)
a description of the mine where the eligible exploration activity occurred;
(B)
evidence that the certified expenditure occurred and the amount of the 
certified expenditure; and
(C)
the means for verifying that severance tax liability occurs as a direct result of 
an eligible exploration activity; and
(vi)
a requirement that, if a claimant intends to assign a tax credit, the claimant shall 
provide to the division a written notice of intent to assign the tax credit to another 
person, in a form the division approves, that includes:
(A)
written certification or other proof that the claimant irrevocably elects not to 
claim the tax credit authorized by the tax credit certificate; and
(B)
contact information for the person to which the claimant is assigning the tax 
credit.
(b)
The parties to the agreement may modify the terms of the agreement.
(c)
(i)
The division shall approve certified expenditures upon receiving a report of a 
certified expenditure unless the division determines that the expenditure does not 
meet the definition of certified expenditure.
(ii)
If the division determines that an expenditure does not meet the definition of 
certified expenditure, the division shall provide the person a written explanation 
that states each reason the division denied the expenditure and give the person an 
opportunity to correct any deficiency or provide additional information.
(5)
(a)
A person with an agreement may apply for a tax credit certificate:
(i)
upon becoming an eligible claimant; and
(ii)
for a taxable year beginning on or after January 1, 2027.
(b)
The person shall include in the application for a tax credit certificate the following 
information for the taxable year in which the person seeks a tax credit certificate:
(i)
proof that the person is an eligible claimant;
(ii)
a description of the mineral that the eligible claimant produced and evidence to 
support that the mineral is produced from an eligible exploration activity;
(iii)
the amount of severance tax liability as a direct result of minerals produced from 
an eligible exploration activity that the eligible claimant incurred for the taxable 
year; and
(iv)
any other information the division requests.
(6)
(a)
After the division receives an application for a tax credit certificate, the division 
shall:
(i)
verify that the person is an eligible claimant; and 
(ii)
determine whether the eligible claimant has approved certified expenditures.
(b)
Subject to Subsection (6)(c), the division shall issue a tax credit certificate in an 
amount equal to the lesser of:
(i)
the amount of certified expenditures minus any certified expenditures for which 
the division previously issued a tax credit certificate; or
(ii)
the claimant's severance tax liability as a direct result of minerals produced from 
an eligible exploration activity for the taxable year.
(c)
(i)
The division may not issue a tax credit certificate if the aggregate value of tax 
credit certificates issued for certified expenditures related to eligible exploration 
activities at the same mine exceeds $20,000,000.
(ii)
Notwithstanding Subsection (6)(c)(i), the division may issue a tax credit 
certificate up to an aggregate value of $30,000,000 for certified expenditures 
related to eligible exploration activities at the same mine if the certified 
expenditures that exceed $20,000,000 are for eligible exploration activities 
undertaken to produce a mineral for which the United States is greater than 50% 
net import reliant, as provided in the Mineral Commodity Summaries published 
by the United States Geological Survey, in the calendar year in which an eligible 
exploration activity commences.
(7)
(a)
If the claimant meets the requirements of Subsection (4)(a)(vi), the division shall 
issue an assigned tax credit certificate to the person identified by the claimant in an 
amount equal to the lesser of:
(i)
the amount of the claimant's certified expenditures minus any certified 
expenditures for which the division previously issued a tax credit certificate; or
(ii)
the person's severance tax liability as a direct result of minerals produced from an 
eligible exploration activity for the taxable year.
(b)
A person that receives an assigned tax credit certificate may claim the tax credit 
under Section 
59-5-304
 as if the person met the requirements of Section 
59-5-304
, if 
the person files a return under Title 59, Chapter 5, Part 2, Mining Severance Tax.
(8)
An eligible claimant that receives a tax credit certificate or assigned tax credit certificate 
in accordance with this section shall retain the tax credit certificate or assigned tax credit 
certificate for the same time period that a person is required to keep books and records 
under Section 
59-1-1406
.
(9)
The division shall submit annually to the State Tax Commission an electronic list that 
includes:
(a)
the name and identifying information for:
(i)
each claimant to which the division issues a tax credit certificate; and
(ii)
each person to which the division issues an assigned tax credit certificate in 
accordance with Subsection (7);
(b)
for each person described in Subsection (9)(a), the amount of tax credit stated on the 
tax credit certificate or assigned tax credit certificate; and
(c)
for each person described in Subsection (9)(a)(ii), information necessary to identify 
the original tax credit certificate and the assigned tax credit certificate.
(10)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the 
division may make rules governing the administration of the agreement and tax credit 
certificate process described in this section.
Section 3, Section 
59-5-101
 is amended to read:
59-5-101
Effective 
05/07/25
Applies beginning 
01/01/25
. Definitions.
As used in this part:
(1)
"Board" means the Board of Oil, Gas, and Mining created in Section 
40-6-4
.
(2)
"Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
(3)
"Condensate" means 
those
the
 hydrocarbons, regardless of gravity, that occur naturally 
in the gaseous phase in the reservoir that are separated from the natural gas as liquids 
through the process of condensation either in the reservoir, in the wellbore, or at the 
surface in field separators.
(4)
"Crude oil" means 
those
the
 hydrocarbons, regardless of gravity, that occur naturally in 
the liquid phase in the reservoir and are produced and recovered at the wellhead in liquid 
form.
(5)
"Development well" means any oil and gas producing well other than a wildcat well.
(6)
"Division" means the Division of Oil, Gas, and Mining established under 
Title 40, 
Chapter 6, Board and Division of Oil, Gas, and Mining
.
(7)
"Enhanced recovery project" means:
(a)
the injection of liquids or hydrocarbon or nonhydrocarbon gases directly into a 
reservoir for the purpose of:
(i)
augmenting reservoir energy;
(ii)
modifying the properties of the fluids or gases in a reservoir; or
(iii)
changing the reservoir conditions to increase the recoverable oil, gas, or oil and 
gas through the joint use of two or more well bores; and
(b)
a project initially approved by the board as a new or expanded enhanced recovery 
project on or after January 1, 1996.
(8)
(a)
"Gas" means:
(i)
natural gas;
(ii)
natural gas liquids; or
(iii)
any mixture of natural gas and natural gas liquids.
(b)
"Gas" does not include solid hydrocarbons.
(9)
"Incremental production" means that part of production, certified by the 
Division of 
Oil, Gas, and Mining
division
, which is achieved from an enhanced recovery project 
that would not have economically occurred under the reservoir conditions existing 
before the project and that has been approved by the division as incremental production.
(10)
"Natural gas" means 
those
the
 hydrocarbons, other than oil and other than natural gas 
liquids separated from natural gas, that occur naturally in the gaseous phase in the 
reservoir and are produced and recovered at the wellhead in gaseous form.
(11)
"Natural gas liquids" means 
those
the
 hydrocarbons initially in reservoir natural gas, 
regardless of gravity, that are separated in gas processing plants from the natural gas as 
liquids at the surface through the process of condensation, absorption, adsorption, or 
other methods.
(12)
(a)
"Oil" means:
(i)
crude oil;
(ii)
condensate; or
(iii)
any mixture of crude oil and condensate.
(b)
"Oil" does not include solid hydrocarbons.
(13)
"Oil or gas field" means a geographical area overlying oil or gas structures
. The
, the
boundaries of 
oil or gas fields
which
 shall conform with the boundaries as fixed by the 
Board and Division of Oil, Gas, and Mining
board and division
 under 
Title 40, Chapter 
6, Board and Division of Oil, Gas, and Mining
.
(14)
"Oil shale" means a group of fine black to dark brown shales containing bituminous 
material that yields petroleum upon distillation.
(15)
"Operator" means any person engaged in the business of operating an oil or gas well, 
regardless of whether the person is:
(a)
a working interest owner;
(b)
an independent contractor; or
(c)
acting in a capacity similar to Subsection 
(15)(a)
 or 
(b)
 as determined by the 
commission by rule made in accordance with 
Title 63G, Chapter 3, Utah 
Administrative Rulemaking Act
.
(16)
"Owner" means any person having a working interest, royalty interest, payment out of 
production, or any other interest in the oil or gas produced or extracted from an oil or 
gas well in the state, or in the proceeds of this production.
(17)
(a)
Subject to Subsections 
(17)(b)
 and 
(c)
, "processing costs" means the reasonable 
actual costs of processing oil or gas to remove:
(i)
natural gas liquids; or
(ii)
contaminants.
(b)
If processing costs are determined on the basis of an arm's-length contract, 
processing costs are the actual costs. 
(c)
(i)
If processing costs are determined on a basis other than an arm's-length 
contract, processing costs are those reasonable costs associated with:
(A)
actual operating and maintenance expenses, including oil or gas used or 
consumed in processing;
(B)
overhead directly attributable and allocable to the operation and maintenance; 
and 
(C)
(I)
depreciation and a return on undepreciated capital investment; or
(II)
a cost equal to a return on the investment in the processing facilities as 
determined by the commission. 
(ii)
Subsection 
(17)(c)(i)
 includes situations where the producer performs the 
processing for the producer's product.
(18)
"Producer" means any working interest owner in any lands in any oil or gas field from 
which gas or oil is produced.
(19)
"Recompletion" means any downhole operation that is:
(a)
conducted to reestablish the producibility or serviceability of a well in any geologic 
interval; and
(b)
approved by the division as a recompletion.
(20)
(19)
"Research and development" means the process of inquiry or experimentation 
aimed at the discovery of facts, devices, technologies, or applications and the process of 
preparing those devices, technologies, or applications for marketing.
(21)
(20)
"Royalty interest owner" means the owner of an interest in oil or gas, or in the 
proceeds of production from the oil or gas who does not have the obligation to share in 
the expenses of developing and operating the property.
(22)
(21)
"Solid hydrocarbons" means:
(a)
coal;
(b)
gilsonite;
(c)
ozocerite;
(d)
elaterite;
(e)
oil shale;
(f)
tar sands; and
(g)
all other hydrocarbon substances that occur naturally in solid form.
(23)
(22)
"Stripper well" means:
(a)
an oil well whose average daily production for the days the well has produced has 
been 20 barrels or less of crude oil a day during any consecutive 12-month period; or
(b)
a gas well whose average daily production for the days the well has produced has 
been 60 MCF or less of natural gas a day during any consecutive 90-day period.
(24)
(23)
"Tar sands" means impregnated sands that yield mixtures of liquid hydrocarbon 
and require further processing other than mechanical blending before becoming finished 
petroleum products.
(25)
(24)
(a)
Subject to Subsections 
(25)(b)
(24)(b)
 and 
(c)
, "transportation costs" 
means the reasonable actual costs of transporting oil or gas products from the well to 
the point of sale.
(b)
If transportation costs are determined on the basis of an arm's-length contract, 
transportation costs are the actual costs. 
(c)
(i)
If transportation costs are determined on a basis other than an arm's-length 
contract, transportation costs are those reasonable costs associated with:
(A)
actual operating and maintenance expenses, including fuel used or consumed 
in transporting the oil or gas;
(B)
overhead costs directly attributable and allocable to the operation and 
maintenance; and
(C)
depreciation and a return on undepreciated capital investment.
(ii)
Subsection 
(25)(c)(i)
(24)(c)(i)
 includes situations where the producer performs 
the transportation for the producer's product.
(d)
Regardless of whether transportation costs are determined on the basis of an 
arm's-length contract or a basis other than an arm's-length contract, transportation 
costs include:
(i)
carbon dioxide removal;
(ii)
compression;
(iii)
dehydration;
(iv)
gathering;
(v)
separating;
(vi)
treating; or
(vii)
a process similar to Subsections 
(25)(d)(i)
(24)(d)(i)
 through 
(vi)
, as determined 
by the commission by rule made in accordance with 
Title 63G, Chapter 3, Utah 
Administrative Rulemaking Act
.
(26)
(25)
"Tribe" means the Ute Indian Tribe of the Uintah and Ouray Reservation.
(27)
(26)
"Well
 or wells
" means any extractive means from which oil or gas is produced 
or extracted, located within an oil or gas field, and operated by one person.
(28)
(27)
"Wildcat well" means an oil and gas producing well which is drilled and 
completed in a pool, as defined under Section 
40-6-2
, in which a well has not been 
previously completed as a well capable of producing in commercial quantities.
(29)
(28)
"Working interest owner" means the owner of an interest in oil or gas burdened 
with a share of the expenses of developing and operating the property.
(30)
(a)
"Workover" means any downhole operation that is:
(i)
conducted to sustain, restore, or increase the producibility or serviceability of a 
well in the geologic intervals in which the well is currently completed; and
(ii)
approved by the division as a workover.
(b)
"Workover" does not include operations that are conducted primarily as routine 
maintenance or to replace worn or damaged equipment.
Section 4, Section 
59-5-102
 is amended to read:
59-5-102
Effective 
05/07/25
Applies beginning 
01/01/25
. Definitions -- 
Severance tax -- Computation -- Rate -- Annual exemption -- Tax rate reduction.
(1)
As used in this section:
(a)
"Division" means the Division of Oil, Gas, and Mining created in Section 
40-6-15
.
(b)
"Office" means the Office of Energy Development created in Section 
79-6-401
.
(c)
(a)
"Royalty rate" means the percentage of the interests described in Subsection 
(2)(b)(i)
 as defined by a contract between the United States, the state, an Indian, or an 
Indian tribe and the oil or gas producer.
(d)
(b)
"Taxable value" means the total value of the oil or gas minus:
(i)
any royalties paid to, or the value of oil or gas taken in kind by, the interest 
holders described in Subsection 
(2)(b)(i)
; and
(ii)
the total value of oil or gas exempt from severance tax under Subsection 
(2)(b)(ii)
.
(e)
(c)
"Taxable volume" means:
(i)
for oil, the total volume of barrels minus:
(A)
for an interest described in Subsection 
(2)(b)(i)
, the product of the royalty rate 
and the total volume of barrels; and
(B)
the number of barrels that are exempt under Subsection 
(2)(b)(ii)
; and
(ii)
for natural gas, the total volume of MCFs minus:
(A)
for an interest described in Subsection 
(2)(b)(i)
, the product of the royalty rate 
and the total volume of MCFs; and
(B)
the number of MCFs that are exempt under Subsection 
(2)(b)(ii)
.
(f)
(d)
"Total value" means the value, as determined by Section 
59-5-103.1
, of all oil or 
gas that is:
(i)
produced; and
(ii)
(A)
saved;
(B)
sold; or
(C)
transported from the field where the oil or gas was produced.
(g)
(e)
"Total volume" means:
(i)
for oil, the number of barrels:
(A)
produced; and
(B)
(I)
saved;
(II)
sold; or
(III)
transported from the field where the oil was produced; and
(ii)
for natural gas, the number of MCFs:
(A)
produced; and
(B)
(I)
saved;
(II)
sold; or
(III)
transported from the field where the natural gas was produced.
(h)
(f)
"Value of oil or gas taken in kind" means the volume of oil or gas taken in kind 
multiplied by the market price for oil or gas at the location where the oil or gas was 
produced on the date the oil or gas was taken in kind.
(2)
(a)
Except as provided in Subsection 
(2)(b)
, a person owning an interest in oil or gas 
produced from a well in the state, including a working interest, royalty interest, 
payment out of production, or any other interest, or in the proceeds of the production 
of oil or gas, shall pay to the state a severance tax on the owner's interest in the 
taxable value of the oil or gas:
(i)
produced; and
(ii)
(A)
saved;
(B)
sold; or
(C)
transported from the field where the substance was produced.
(b)
The severance tax imposed by Subsection 
(2)(a)
 does not apply to:
(i)
an interest of:
(A)
the United States in oil or gas or in the proceeds of the production of oil or gas;
(B)
the state or a political subdivision of the state in oil or gas or in the proceeds 
of the production of oil or gas; and
(C)
an Indian or Indian tribe as defined in Section 
9-9-101
 in oil or gas or in the 
proceeds of the production of oil or gas produced from land under the 
jurisdiction of the United States; and
(ii)
the value of:
(A)
oil or gas produced from stripper wells, unless the exemption prevents the 
severance tax from being treated as a deduction for federal tax purposes;
(B)
oil or gas produced in the first 12 months of production for wildcat wells 
started after January 1, 1990; and
(C)
oil or gas produced in the first six months of production for development wells 
started after January 1, 1990.
(3)
(a)
The severance tax on oil shall be calculated as follows:
(i)
dividing the taxable value by the taxable volume;
(ii)
(A)
multiplying the rate described in Subsection 
(4)(a)(i)
 by the portion of the 
figure calculated in Subsection 
(3)(a)(i)
 that is subject to the rate described in 
Subsection 
(4)(a)(i)
; and
(B)
multiplying the rate described in Subsection 
(4)(a)(ii)
 by the portion of the 
figure calculated in Subsection 
(3)(a)(i)
 that is subject to the rate described in 
Subsection 
(4)(a)(ii)
;
(iii)
adding together the figures calculated in Subsections 
(3)(a)(ii)(A)
 and 
(B)
; and
(iv)
multiplying the figure calculated in Subsection 
(3)(a)(iii)
 by the taxable volume.
(b)
The severance tax on natural gas shall be calculated as follows:
(i)
dividing the taxable value by the taxable volume;
(ii)
(A)
multiplying the rate described in Subsection 
(4)(b)(i)
 by the portion of the 
figure calculated in Subsection 
(3)(b)(i)
 that is subject to the rate described in 
Subsection 
(4)(b)(i)
; and
(B)
multiplying the rate described in Subsection 
(4)(b)(ii)
 by the portion of the 
figure calculated in Subsection 
(3)(b)(i)
 that is subject to the rate described in 
Subsection 
(4)(b)(ii)
;
(iii)
adding together the figures calculated in Subsections 
(3)(b)(ii)(A)
 and 
(B)
; and
(iv)
multiplying the figure calculated in Subsection 
(3)(b)(iii)
 by the taxable volume.
(c)
The severance tax on natural gas liquids shall be calculated by multiplying the 
taxable value of the natural gas liquids by the severance tax rate in Subsection 
(4)(c)
.
(4)
Subject to Subsection 
(9)
(7)
:
(a)
the severance tax rate for oil is as follows:
(i)
3% of the taxable value of the oil up to and including the first $13 per barrel for 
oil; and
(ii)
5% of the taxable value of the oil from $13.01 and above per barrel for oil;
(b)
the severance tax rate for natural gas is as follows:
(i)
3% of the taxable value of the natural gas up to and including the first $1.50 per 
MCF for gas; and
(ii)
5% of the taxable value of the natural gas from $1.51 and above per MCF for gas; 
and
(c)
the severance tax rate for natural gas liquids is 4% of the taxable value of the natural 
gas liquids.
(5)
If oil or gas is shipped outside the state:
(a)
the shipment constitutes a sale; and
(b)
the oil or gas is subject to the tax imposed by this section.
(6)
(a)
Except as provided in Subsection 
(6)(b)
, if the oil or gas is stockpiled, the tax is 
not imposed until the oil or gas is:
(i)
sold;
(ii)
transported; or
(iii)
delivered.
(b)
If oil or gas is stockpiled for more than two years, the oil or gas is subject to the tax 
imposed by this section.
(7)
(a)
Subject to other provisions of this Subsection 
(7)
, a taxpayer that pays for all or 
part of the expenses of a recompletion or workover may claim a nonrefundable tax 
credit equal to the amount stated on a tax credit certificate that the office issues to the 
taxpayer.
(b)
The maximum tax credit per taxpayer per well in a calendar year is the lesser of:
(i)
20% of the taxpayer's payment of expenses of a well recompletion or workover 
during the calendar year; and
(ii)
$30,000.
(c)
A taxpayer may carry forward a tax credit allowed under this Subsection 
(7)
 for the 
next three calendar years if the tax credit exceeds the taxpayer's tax liability under 
this part for the calendar year in which the taxpayer claims the tax credit.
(d)
(i)
To claim a tax credit under this Subsection 
(7)
, a taxpayer shall follow the 
procedures and requirements of this Subsection 
(7)(d)
.
(ii)
The taxpayer shall prepare a summary of the taxpayer's expenses of a well 
recompletion or workover during the calendar year that the well recompletion or 
workover is completed.
(iii)
An independent certified public accountant shall:
(A)
review the summary from the taxpayer; and
(B)
provide a report on the accuracy and validity of the amount of expenses of a 
well recompletion or workover that the taxpayer included in the summary, in 
accordance with the agreed upon procedures.
(iv)
The taxpayer shall submit the taxpayer's summary and the independent certified 
public accountant's report to the division to verify that the expenses certified by 
the independent certified public accountant are well recompletion or workover 
expenses.
(v)
The division shall return to the taxpayer:
(A)
the taxpayer's summary;
(B)
the report by the independent certified public accountant; and
(C)
a report by the division that includes the amount of approved well 
recompletion or workover expenses.
(vi)
The taxpayer shall apply to the office for a tax credit certificate to receive a 
written certification, on a form approved by the commission, that includes:
(A)
the amount of the taxpayer's payments of expenses of a well recompletion or 
workover during the calendar year; and
(B)
the amount of the taxpayer's tax credit.
(vii)
A taxpayer that receives a tax credit certificate shall retain the tax credit 
certificate for the same time period that 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 tax credit certificate; and
(ii)
for each taxpayer, the amount of the tax credit listed on the tax credit certificate.
(f)
In accordance with 
Title 63G, Chapter 3, Utah Administrative Rulemaking Act
:
(i)
the office may make rules to govern the application process for receiving a tax 
credit certificate under this Subsection 
(7)
; and
(ii)
the division shall make rules to establish the agreed upon procedures described 
in Subsection 
(7)(d)(iii)
.
(8)
(a)
Subject to the other provisions of this Subsection 
(8)
, a taxpayer may claim a tax 
credit against a severance tax owing on natural gas under this section if:
(i)
the taxpayer is required to pay a severance tax on natural gas under this section;
(ii)
the taxpayer owns or operates a plant in the state that converts natural gas to 
hydrogen fuel; and
(iii)
all of the natural gas for which the taxpayer owes a severance tax under this 
section is used for the production in the state of hydrogen fuel for use in zero 
emission motor vehicles.
(b)
The taxpayer may claim a tax credit equal to the lesser of:
(i)
the amount of tax that the taxpayer owes under this section; and
(ii)
$5,000,000.
(c)
(i)
To claim a tax credit under this Subsection 
(8)
, a taxpayer shall follow the 
procedures and requirements of this Subsection 
(8)(c)
.
(ii)
The taxpayer shall request that the division verify that the taxpayer owns or 
operates a plant in this state:
(A)
that converts natural gas to hydrogen fuel; and
(B)
at which all natural gas is converted to hydrogen fuel for use in zero emission 
motor vehicles.
(d)
The division shall submit to the commission an electronic list that includes the name 
and identifying information of each taxpayer for which the division completed the 
verification described in Subsection 
(8)(c)
.
(9)
(7)
A 50% reduction in the tax rate is imposed upon the incremental production 
achieved from an enhanced recovery project.
(10)
(8)
The taxes imposed by this section are:
(a)
in addition to all other taxes provided by law; and
(b)
delinquent, unless otherwise deferred, on June 1 following the calendar year when 
the oil or gas is:
(i)
produced; and
(ii)
(A)
saved;
(B)
sold; or
(C)
transported from the field.
(11)
(9)
With respect to the tax imposed by this section on each owner of an interest in the 
production of oil or gas or in the proceeds of the production of oil or gas in the state, 
each owner is liable for the tax in proportion to the owner's interest in the production or 
in the proceeds of the production.
(12)
(10)
The tax imposed by this section shall be reported and paid by each producer that 
takes oil or gas in kind pursuant to an agreement on behalf of the producer and on behalf 
of each owner entitled to participate in the oil or gas sold by the producer or transported 
by the producer from the field where the oil or gas is produced.
(13)
(11)
Each producer shall deduct the tax imposed by this section from the amounts due 
to other owners for the production or the proceeds of the production.
Section 5, Section 
59-5-301
 is enacted to read:
3. Tax Credits 
59-5-301
Effective 
05/07/25
Applies beginning 
01/01/25
. Definitions.
As used in this part:
(1)
"Division" means the Division of Oil, Gas, and Mining established under Title 40, 
Chapter 6, Board and Division of Oil, Gas, and Mining.
(2)
"High cost infrastructure project" means the same as that term is defined in Section 
79-6-602
.
(3)
"Infrastructure cost-burdened entity" means the same as that term is defined in Section 
79-6-602
.
(4)
"Infrastructure-related revenue" means the same as that term is defined in Section 
79-6-602
.
(5)
"Natural gas" means the same as that term is defined in Section 
59-5-101
.
(6)
"Natural gas liquids" means the same as that term is defined in Section 
59-5-101
.
(7)
"Office" means the Office of Energy Development created in Section 
79-6-401
.
(8)
"Recompletion" means any downhole operation that is:
(a)
conducted to reestablish the producibility or serviceability of a well in any geologic 
interval; and
(b)
approved by the division as a recompletion.
(9)
"Well" means the same as that term is defined in Section 
59-5-101
.
(10)
(a)
"Workover" means any downhole operation that is:
(i)
conducted to sustain, restore, or increase the producibility or serviceability of a 
well in the geologic intervals in which the well is currently completed; and
(ii)
approved by the division as a workover.
(b)
"Workover" does not include operations that are conducted primarily as routine 
maintenance or to replace worn or damaged equipment.
Section 6, Section 
59-5-302
 is enacted to read:
59-5-302
Effective 
05/07/25
Applies beginning 
01/01/25
. Tax credit for 
recompletion or workover.
(1)
A taxpayer that pays for all or part of the expenses of a recompletion or workover may 
claim a nonrefundable tax credit against taxes due under Section 
59-5-102
 equal to the 
amount stated on a tax credit certificate that the office issues to the taxpayer.
(2)
The maximum tax credit per taxpayer per well in a calendar year is the lesser of:
(a)
20% of the taxpayer's payment of expenses of a well recompletion or workover 
during the calendar year; and
(b)
$30,000.
(3)
A taxpayer may carry forward a tax credit allowed under this section for the next three 
calendar years if the tax credit exceeds the taxpayer's tax liability under Section 
59-5-102
for the calendar year in which the taxpayer claims the tax credit.
(4)
(a)
To claim a tax credit, a taxpayer shall follow the procedures and requirements of 
this Subsection 
(4)
.
(b)
The taxpayer shall prepare a summary of the taxpayer's expenses of a recompletion 
or workover during the calendar year that the taxpayer completed the recompletion or 
workover.
(c)
An independent certified public accountant shall:
(i)
review the summary from the taxpayer; and
(ii)
provide a report on the accuracy and validity of the amount of expenses of a 
recompletion or workover that the taxpayer included in the summary, in 
accordance with the agreed upon procedures.
(d)
The taxpayer shall submit the taxpayer's summary and the independent certified 
public accountant's report to the division to verify that the expenses certified by the 
independent certified public accountant are recompletion or workover expenses.
(e)
The division shall return to the taxpayer:
(i)
the taxpayer's summary;
(ii)
the report by the independent certified public accountant; and
(iii)
a report by the division that includes the amount of approved recompletion or 
workover expenses.
(f)
The taxpayer shall apply to the office for a tax credit certificate to receive a written 
certification, on a form the commission approves, that includes:
(i)
the amount of the taxpayer's payments of expenses of a recompletion or workover 
during the calendar year; and
(ii)
the amount of the taxpayer's tax credit.
(g)
A taxpayer that receives a tax credit certificate shall retain the tax credit certificate 
for the same time period that a person is required to keep books and records under 
Section 
59-1-1406
.
(5)
The office shall submit to the commission an electronic list that includes:
(a)
the name and identifying information of each taxpayer to which the office issues a 
tax credit certificate; and
(b)
for each taxpayer, the amount of the tax credit listed on the tax credit certificate.
(6)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
(a)
the office may make rules to govern the application process for receiving a tax credit 
certificate; and
(b)
the division shall make rules to establish the agreed upon procedures described in 
Subsection (4).
Section 7, Section 
59-5-303
 is enacted to read:
59-5-303
Effective 
05/07/25
Applies beginning 
01/01/25
. Tax credit for 
natural gas converted to hydrogen fuel.
(1)
A taxpayer may claim a tax credit against a severance tax owing on natural gas under 
Section 
59-5-102
 if:
(a)
the taxpayer is required to pay a severance tax on natural gas under Section 
59-5-102
;
(b)
the taxpayer owns or operates a plant in the state that converts natural gas to 
hydrogen fuel; and
(c)
all of the natural gas for which the taxpayer owes a severance tax under Section 
59-5-102
 is used for the production in the state of hydrogen fuel for use in zero 
emission motor vehicles.
(2)
The taxpayer may claim a tax credit equal to the lesser of:
(a)
the amount of tax that the taxpayer owes under Section 
59-5-102
; and
(b)
$5,000,000.
(3)
(a)
To claim a tax credit, a taxpayer shall follow the procedures and requirements of 
this Subsection (3).
(b)
The taxpayer shall request that the division verify that the taxpayer owns or operates 
a plant in this state:
(i)
that converts natural gas to hydrogen fuel; and
(ii)
at which all natural gas is converted to hydrogen fuel for use in zero emission 
motor vehicles.
(4)
The division shall submit to the commission an electronic list that includes the name 
and identifying information of each taxpayer for which the division completed the 
verification described in Subsection (3).
Section 8, Section 
59-5-304
, which is renumbered from Section 59-5-216 is renumbered 
and amended to read:
59-5-216
59-5-304
Effective 
05/07/25
Applies beginning 
01/01/25
. Tax credit 
for mining exploration.
(1)
As used in this section:
(a)
"Assigned tax credit certificate" means the same as that term is defined in Section 
40-6-24
.
(b)
"Eligible claimant" means a person:
(i)
who is an eligible
that is a
 claimant as defined in Section 
40-6-24
 and obtains a 
tax credit certificate; or
(ii)
to 
whom
which
 a person described in Subsection 
(1)(a)(i)
(1)(b)(i)
 assigns a tax 
credit certificate and 
that 
obtains an assigned tax credit certificate in accordance 
with Section 
40-6-24
.
(b)
(c)
"Tax credit certificate" means the same as that term is defined in Section 
40-6-24
.
(2)
Subject to Subsection 
(3)
, 
For a taxable year beginning on or after January 1, 2027, 
an 
eligible claimant may claim a nonrefundable tax credit against severance tax otherwise 
due under 
this part
Part 2, Mining Severance Tax,
 in an amount equal to the amount 
stated on
 the tax credit certificate for the taxable year.
:
(a)
the tax credit certificate for the taxable year for an eligible claimant described in 
Subsection (1)(b)(i); or 
(b)
the assigned tax credit certificate for the taxable year for an eligible claimant 
described in Subsection (1)(b)(ii).
(3)
An eligible claimant may not claim in any taxable year a credit under this section that 
exceeds 30% of the eligible claimant's severance tax liability for the taxable year.
(4)
(3)
An eligible claimant may carry forward to the next 15 taxable years the amount of 
the eligible claimant's tax credit that exceeds the amount described in Subsection 
(3)
(2)
.
Section 9, Section 
59-5-305
 is enacted to read:
59-5-305
Effective 
05/07/25
Applies beginning 
01/01/25
. High cost 
infrastructure tax credit.
(1)
(a)
Subject to Subsection 
(1)(b)
, an infrastructure cost-burdened entity may claim a 
nonrefundable tax credit against severance taxes due under Part 1, Oil and Gas 
Severance Tax, or Part 2, Mining Severance Tax, for development of a high cost 
infrastructure project.
(b)
An infrastructure cost-burdened entity may not claim a tax credit under this section 
and under Section 
59-7-619
 or 
59-10-1034
 using the same tax credit certificate.
(2)
The tax credit under this section is the amount listed as the tax credit amount on a tax 
credit certificate that the office issues under Title 79, Chapter 6, Part 6, High Cost 
Infrastructure Development Tax Credit Act, to the infrastructure cost-burdened entity for 
the taxable year.
(3)
An infrastructure cost-burdened entity may carry forward a tax credit under this section 
for a period that does not exceed the next seven taxable years if the amount of the 
severance tax credit exceeds the infrastructure cost-burdened entity's tax liability under 
this chapter for that taxable year.
Section 10, Section 
59-7-619
 is amended to read:
59-7-619
Effective 
05/07/25
Applies beginning 
01/01/25
. Nonrefundable high 
cost infrastructure development tax credit.
(1)
As used in this section:
(a)
"High cost infrastructure project" means the same as that term is defined in Section 
79-6-602
.
(b)
"Infrastructure cost-burdened entity" means the same as that term is defined in 
Section 
79-6-602
.
(c)
"Infrastructure-related revenue" means the same as that term is defined in Section 
79-6-602
.
(d)
"Office" means the Office of Energy Development created in Section 
79-6-401
.
(2)
(a)
Subject to the other provisions of this section, a corporation that is an 
infrastructure cost-burdened entity may claim a nonrefundable tax credit for 
development of a high cost infrastructure project as provided in this section.
(b)
A corporation that is an infrastructure cost-burdened entity may not claim a tax credit 
under this section and under Section 
59-5-305
 using the same tax credit certificate.
(3)
The tax credit under this section is the amount listed as the tax credit amount on a tax 
credit certificate that the office issues under 
Title 79, Chapter 6, Part 6, High Cost 
Infrastructure Development Tax Credit Act
, to the infrastructure cost-burdened entity for 
the taxable year.
(4)
An infrastructure cost-burdened entity may carry forward a tax credit under this section 
for a period that does not exceed the next seven taxable years if:
(a)
the infrastructure cost-burdened entity is allowed to claim a tax credit under this 
section for a taxable year; and
(b)
the amount of the tax credit exceeds the infrastructure cost-burdened entity's tax 
liability under this chapter for that taxable year.
(5)
(a)
In accordance with Section 
59-7-159
, the Revenue and Taxation Interim 
Committee shall study the tax credit allowed by this section and make 
recommendations concerning whether the tax credit should be continued, modified, 
or repealed.
(b)
(i)
Except as provided in Subsection 
(5)(b)(ii)
, for purposes of the study required 
by this Subsection 
(5)
, the office shall provide the following information, if 
available to the office, to the Office of the Legislative Fiscal Analyst:
(A)
the amount of tax credit that the office grants to each infrastructure 
cost-burdened entity for each taxable year;
(B)
the infrastructure-related revenue generated by each high cost infrastructure 
project;
(C)
the information contained in the office's latest report under Section 
79-6-605
; 
and
(D)
any other information that the Office of the Legislative Fiscal Analyst 
requests.
(ii)
(A)
In providing the information described in Subsection 
(5)(b)(i)
, the office 
shall redact information that identifies a recipient of a tax credit under this 
section.
(B)
If, notwithstanding the redactions made under Subsection 
(5)(b)(ii)(A)
, 
reporting the information described in Subsection 
(5)(b)(i)
 might disclose the 
identity of a recipient of a tax credit, the office may file a request with the 
Revenue and Taxation Interim Committee to provide the information described 
in Subsection 
(5)(b)(i)
 in the aggregate for all infrastructure cost-burdened 
entities that receive the tax credit under this section.
(c)
As part of the study required by this Subsection 
(5)
, the Office of the Legislative 
Fiscal Analyst shall report to the Revenue and Taxation Interim Committee a 
summary and analysis of the information provided to the Office of the Legislative 
Fiscal Analyst by the office under Subsection 
(5)(b)
.
(d)
The Revenue and Taxation Interim Committee shall ensure that the 
recommendations described in Subsection 
(5)(a)
 include an evaluation of:
(i)
the cost of the tax credit to the state;
(ii)
the purpose and effectiveness of the tax credit; and
(iii)
the extent to which the state benefits from the tax credit.
(6)
Notwithstanding Section 
59-7-903
, the commission may not remove the tax credit 
described in this section from the tax return for a taxable year beginning before January 
1, 2027.
Section 11, Section 
59-10-1034
 is amended to read:
59-10-1034
Effective 
05/07/25
Applies beginning 
01/01/25
. Nonrefundable 
high cost infrastructure development tax credit.
(1)
As used in this section:
(a)
"High cost infrastructure project" means the same as that term is defined in Section 
79-6-602
.
(b)
"Infrastructure cost-burdened entity" means the same as that term is defined in 
Section 
79-6-602
.
(c)
"Infrastructure-related revenue" means the same as that term is defined in Section 
79-6-602
.
(d)
"Office" means the Office of Energy Development created in Section 
79-6-401
.
(2)
(a)
Subject to the other provisions of this section, a claimant, estate, or trust that is an 
infrastructure cost-burdened entity may claim a nonrefundable tax credit for 
development of a high cost infrastructure project as provided in this section.
(b)
A claimant, estate, or trust that is an infrastructure cost-burdened entity may not 
claim a tax credit under this section and under Section 
59-5-305
 using the same tax 
credit certificate.
(3)
The tax credit under this section is the amount listed as the tax credit amount on a tax 
credit certificate that the office issues under 
Title 79, Chapter 6, Part 6, High Cost 
Infrastructure Development Tax Credit Act
, to the infrastructure cost-burdened entity for 
the taxable year.
(4)
An infrastructure cost-burdened entity may carry forward a tax credit under this section 
for a period that does not exceed the next seven taxable years if:
(a)
the infrastructure cost-burdened entity is allowed to claim a tax credit under this 
section for a taxable year; and
(b)
the amount of the tax credit exceeds the infrastructure cost-burdened entity's tax 
liability under this chapter for that taxable year.
(5)
(a)
In accordance with Section 
59-10-137
, the Revenue and Taxation Interim 
Committee shall study the tax credit allowed by this section and make 
recommendations concerning whether the tax credit should be continued, modified, 
or repealed.
(b)
(i)
Except as provided in Subsection 
(5)(b)(ii)
, for purposes of the study required 
by this Subsection 
(5)
, the office shall provide the following information, if 
available to the office, to the Office of the Legislative Fiscal Analyst:
(A)
the amount of tax credit that the office grants to each infrastructure 
cost-burdened entity for each taxable year;
(B)
the infrastructure-related revenue generated by each high cost infrastructure 
project;
(C)
the information contained in the office's latest report under Section 
79-6-605
; 
and
(D)
any other information that the Office of the Legislative Fiscal Analyst 
requests.
(ii)
(A)
In providing the information described in Subsection 
(5)(b)(i)
, the office 
shall redact information that identifies a recipient of a tax credit under this 
section.
(B)
If, notwithstanding the redactions made under Subsection 
(5)(b)(ii)(A)
, 
reporting the information described in Subsection 
(5)(b)(i)
 might disclose the 
identity of a recipient of a tax credit, the office may file a request with the 
Revenue and Taxation Interim Committee to provide the information described 
in Subsection 
(5)(b)(i)
 in the aggregate for all infrastructure cost-burdened 
entities that receive the tax credit under this section.
(c)
As part of the study required by this Subsection 
(5)
, the Office of the Legislative 
Fiscal Analyst shall report to the Revenue and Taxation Interim Committee a 
summary and analysis of the information provided to the Office of the Legislative 
Fiscal Analyst by the office under Subsection 
(5)(b)
.
(d)
The Revenue and Taxation Interim Committee shall ensure that the 
recommendations described in Subsection 
(5)(a)
 include an evaluation of:
(i)
the cost of the tax credit to the state;
(ii)
the purpose and effectiveness of the tax credit; and
(iii)
the extent to which the state benefits from the tax credit.
Section 12, Section 
63I-1-240
 is amended to read:
63I-1-240
Effective 
05/07/25
. Repeal dates: Title 40.
(1)
Section 
40-2-204
, Coal Miner Certification Panel created -- Duties, is repealed July 
1, 2034.
(2)
Section 
40-6-24
, Tax credit for mining exploration -- Division to issue certificates, is 
repealed July 1, 2037.
Section 13, Section 
63I-1-259
 is amended to read:
63I-1-259
Effective 
05/07/25
. Repeal dates: Title 59.
(1)
Subsection 
59-1-403
(4)(aa), regarding a requirement for the State Tax Commission to 
inform the Department of Workforce Services whether an individual claimed a federal 
earned income tax credit, is repealed July 1, 2029.
(2)
Section 
59-5-304
, Tax credit for mining exploration, is repealed July 1, 2037.
(2)
(3)
Section 
59-7-618.1
, Tax credit related to alternative fuel heavy duty vehicles, is 
repealed July 1, 2029.
(3)
(4)
Section 
59-9-102.5
, Offset for occupational health and safety related donations, is 
repealed December 31, 2030.
(4)
(5)
Section 
59-10-1033.1
, Tax credit related to alternative fuel heavy duty vehicles, is 
repealed July 1, 2029.
Section 14, Section 
63L-2-202
 is enacted to read:
63L-2-202
Effective 
05/07/25
. Federal impacts related to critical mineral 
deposits.
(1)
As used in this section:
(a)
"Critical mineral deposit" means a deposit of a mineral, element, substance, or 
material designated as critical by the Secretary of the Interior in accordance with 30 
U.S.C. Sec. 1606.
(b)
"Federal designation" means the designation of a:
(i)
national monument;
(ii)
national conservation area;
(iii)
wilderness area or wilderness study area;
(iv)
area of critical environmental concern;
(v)
research natural area; or
(vi)
national recreation area.
(2)
The Legislature requests that a federal agency, including the president of the United 
States, consult with the state before implementing, announcing, or planning a federal 
designation that may impact the exploration or development of a critical mineral deposit 
in the state.
Section 15, Section 
79-6-401
 is amended to read:
79-6-401
Effective 
05/07/25
Applies beginning 
01/01/25
. Office of Energy 
Development -- Creation -- Director -- Purpose -- Rulemaking regarding confidential 
information -- Fees -- Transition for employees. 
(1)
There is created an Office of Energy Development within the Department of Natural 
Resources to be administered by a director.
(2)
(a)
The executive director shall appoint the director and the director shall serve at the 
pleasure of the executive director.
(b)
The director shall have demonstrated the necessary administrative and professional 
ability through education and experience to efficiently and effectively manage the 
office's affairs.
(3)
The purposes of the office are to:
(a)
serve as the primary resource for advancing energy and mineral development in the 
state;
(b)
implement:
(i)
the state energy policy under Section 
79-6-301
; and
(ii)
the governor's energy and mineral development goals and objectives;
(c)
advance energy education, outreach, and research, including the creation of 
elementary, higher education, and technical college energy education programs;
(d)
promote energy and mineral development workforce initiatives; 
(e)
support collaborative research initiatives targeted at Utah-specific energy and 
mineral development;
(f)
in coordination with the Department of Environmental Quality and other relevant 
state agencies:
(i)
develop effective policy strategies to advocate for and protect the state's interests 
relating to federal energy and environmental entities, programs, and regulations;
(ii)
participate in the federal environmental rulemaking process by:
(A)
advocating for positive reform of federal energy and environmental 
regulations and permitting;
(B)
coordinating with other states to develop joint advocacy strategies; and
(C)
conducting other government relations efforts; and
(iii)
direct the funding of legal efforts to combat federal overreach and unreasonable 
delays regarding energy and environmental permitting; and
(g)
fund the development of detailed and accurate forecasts of the state's long-term 
energy supply and demand, including a baseline projection of expected supply and 
demand and analysis of potential alternative scenarios.
(4)
By following the procedures and requirements of Title 63J, Chapter 5, Federal Funds 
Procedures Act, the office may:
(a)
seek federal grants or loans;
(b)
seek to participate in federal programs; and
(c)
in accordance with applicable federal program guidelines, administer federally 
funded state energy programs.
(5)
The office shall perform the duties required by Sections 
11-42a-106
, 
59-5-102
59-5-302
, 
59-7-614.7
, 
59-10-1029
, Part 5, Alternative Energy Development Tax Credit Act, and 
Part 6, High Cost Infrastructure Development Tax Credit Act.
(6)
(a)
For purposes of administering this section, the office may make rules, by 
following Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to maintain as 
confidential, and not as a public record, information that the office receives from any 
source.
(b)
The office shall maintain information the office receives from any source at the level 
of confidentiality assigned by the source.
(7)
The office may charge application, filing, and processing fees in amounts determined by 
the office in accordance with Section 
63J-1-504
 as dedicated credits for performing 
office duties described in this part.
(8)
(a)
An employee of the office on April 30, 2024, is an at-will employee.
(b)
For an employee described in Subsection (8)(a) who was employed by the office on 
April 30, 2024, the employee shall have the same salary and benefit options an 
employee had when the office was part of the office of the governor.
(c)
An employee of the office hired on or after May 1, 2024, shall receive compensation 
as provided in Title 63A, Chapter 17, Utah State Personnel Management Act.
(9)
(a)
The office shall prepare a strategic energy plan to achieve the state's energy 
policy, including:
(i)
technological and infrastructure innovation needed to meet future energy demand 
including:
(A)
energy production technologies;
(B)
battery and storage technologies;
(C)
smart grid technologies;
(D)
energy efficiency technologies; and
(E)
any other developing energy technology, energy infrastructure planning, or 
investments that will assist the state in meeting energy demand;
(ii)
the state's efficient use and development of:
(A)
energy resources, including natural gas, coal, clean coal, hydrogen, oil, oil 
shale, and oil sands;
(B)
renewable energy resources, including geothermal, solar, hydrogen, wind, 
biomass, biofuel, and hydroelectric;
(C)
nuclear power; and
(D)
earth minerals;
(iii)
areas of energy-related academic research;
(iv)
specific areas of workforce development necessary for an evolving energy 
industry;
(v)
the development of partnerships with national laboratories; and
(vi)
a proposed state budget for economic development and investment.
(b)
In preparing the strategic energy plan, the office shall:
(i)
 consult with stakeholders, including representatives from:
(A)
energy companies in the state;
(B)
private and public institutions of higher education within the state conducting 
energy-related research; and
(C)
other state agencies; and
(ii)
use modeling and industry standard data to:
(A)
define the energy services required by a growing economy;
(B)
calculate energy needs;
(C)
develop state strategy for energy transportation, including transmission lines, 
pipelines, and other infrastructure needs;
(D)
optimize investments to meet energy needs at the least cost and least risk 
while meeting the policy outlined in this section;
(E)
address state needs and investments through a prospective 30-year period, 
divided into five-year working plans; and
(F)
update the plan at least every two years.
(c)
The office shall report annually to the Public Utilities, Energy, and Technology 
Interim Committee on or before the October interim meeting describing:
(i)
progress towards creation and implementation of the strategic energy plan; 
(ii)
the plan's compliance with the state energy policy; and
(iii)
a proposed budget for the office to continue development of the strategic energy 
plan.
(10)
The director shall:
(a)
annually review and propose updates to the state's energy policy, as contained in 
Section 
79-6-301
;
(b)
promote as the governor considers necessary:
(i)
the development of cost-effective energy resources both renewable and 
nonrenewable; and
(ii)
educational programs, including programs supporting conservation and energy 
efficiency measures;
(c)
coordinate across state agencies to assure consistency with state energy policy, 
including:
(i)
working with the State Energy Program to promote access to federal assistance for 
energy-related projects for state agencies and members of the public;
(ii)
working with the Division of Emergency Management to assist the governor in 
carrying out the governor's energy emergency powers under Title 53, Chapter 2a, 
Part 10, Energy Emergency Powers of the Governor Act;
(iii)
participating in the annual review of the energy emergency plan and the 
maintenance of the energy emergency plan and a current list of contact persons 
required by Section 
53-2a-902
; and
(iv)
identifying and proposing measures necessary to facilitate low-income 
consumers' access to energy services;
(d)
coordinate with the Division of Emergency Management ongoing activities designed 
to test an energy emergency plan to ensure coordination and information sharing 
among state agencies and political subdivisions in the state, public utilities and other 
energy suppliers, and other relevant public sector persons as required by Sections 
53-2a-902
, 
53-2a-1004
, 
53-2a-1008
, and 
53-2a-1010
;
(e)
coordinate with requisite state agencies to study:
(i)
the creation of a centralized state repository for energy-related information;
(ii)
methods for streamlining state review and approval processes for energy-related 
projects; and
(iii)
the development of multistate energy transmission and transportation 
infrastructure;
(f)
coordinate energy-related regulatory processes within the state;
(g)
compile, and make available to the public, information about federal, state, and local 
approval requirements for energy-related projects;
(h)
act as the state's advocate before federal and local authorities for energy-related 
infrastructure projects or coordinate with the appropriate state agency; and
(i)
help promote the Division of Facilities Construction and Management's measures to 
improve energy efficiency in state buildings.
(11)
The director has standing to testify on behalf of the governor at the Public Service 
Commission created in Section 
54-1-1
.
(12)
The office shall include best practices in developing actionable goals and 
recommendations as part of preparing and updating every two years the strategic energy 
plan required under Subsection (9).
(13)
The office shall maintain and regularly update a public website that provides an 
accessible dashboard of relevant metrics and reports and makes available the data used 
to create the strategic energy plan.
Section 16, Section 
79-6-602
 is amended to read:
79-6-602
Effective 
05/07/25
Applies beginning 
01/01/25
. Definitions.
As used in this part:
(1)
"Applicant" means a person that conducts business in the state and that applies for a tax 
credit under this part.
(2)
(a)
"Energy delivery project" means a project that is designed to:
(i)
increase the capacity for the delivery of energy to a user of energy inside or 
outside the state; 
(ii)
increase the capability of an existing energy delivery system or related facility to 
deliver energy to a user of energy inside or outside the state; or
(iii)
increase the production and delivery of geothermal energy through horizontal 
drilling to create injection and production wells.
(b)
"Energy delivery project" includes:
(i)
a hydroelectric energy storage system;
(ii)
a utility-scale battery storage system; or
(iii)
a nuclear power generation system.
(3)
"Emissions reduction project" means a project that is designed to reduce the emissions 
of an existing electrical generation facility, refinery, smelter, kiln, mineral processing 
facility, manufacturing facility, oil or gas production facility, or other industrial facility, 
by utilizing selective catalytic reduction technology, carbon capture utilization and 
sequestration technology, or any other emissions reduction technology or equipment.
(4)
"Fuel standard compliance project" means a project designed to retrofit a fuel refinery in 
order to make the refinery capable of producing fuel that complies with the United 
States Environmental Protection Agency's Tier 3 gasoline sulfur standard described in 
40 C.F.R. Sec. 79.54.
(5)
"High cost infrastructure project" means: 
(a)
for an energy delivery project, fuel standard compliance project, mineral processing 
project, or underground mine infrastructure project, a project:
(i)
(A)
that expands or creates new industrial, mining, manufacturing, or 
agriculture activity in the state, not including a retail business;
(B)
that involves new investment of at least $50,000,000 made by an existing 
industrial, mining, manufacturing, or agriculture entity located within a county 
of the first or second class;
(C)
that involves new investment of at least $25,000,000 made by an existing 
industrial, mining, manufacturing, or agriculture entity located within a county 
of the third, fourth, fifth, or sixth class, or a municipality with a population of 
10,000 or less located within a county of the second class; or
(D)
for the construction of a plant or other facility for the storage or production of 
fuel used for transportation, electricity generation, or industrial use;
(ii)
that requires or is directly facilitated by infrastructure construction; and
(iii)
for which the cost of infrastructure construction to the entity creating the project 
is greater than:
(A)
10% of the total cost of the project; or
(B)
$10,000,000; and
(b)
for an emissions reduction project, water purification project, or water resource 
forecasting project, a project:
(i)
that involves:
(A)
new investment of at least $50,000,000 made by an existing industrial, 
mining, manufacturing, or agriculture entity located within a county of the first 
or second class; or
(B)
new investment of at least $25,000,000 made by an existing industrial, 
mining, manufacturing, or agriculture entity located within a county of the 
third, fourth, fifth, or sixth class, or a municipality with a population of 10,000 
or less located within a county of the second class; and
(ii)
that requires or is directly facilitated by infrastructure construction.
(6)
"Infrastructure" means:
(a)
an energy delivery project;
(b)
a railroad as defined in Section 
54-2-1
;
(c)
a fuel standard compliance project;
(d)
a road improvement project;
(e)
a water self-supply project;
(f)
a water removal system project;
(g)
a solution-mined subsurface salt cavern;
(h)
a project that is designed to:
(i)
increase the capacity for water delivery to a water user in the state; or
(ii)
increase the capability of an existing water delivery system or related facility to 
deliver water to a water user in the state; 
(i)
an underground mine infrastructure project;
(j)
an emissions reduction project;
(k)
a mineral processing project;
(l)
a water purification project; or
(m)
a water resource forecasting project.
(7)
(a)
"Infrastructure cost-burdened entity" means an applicant that enters into an 
agreement with the office that qualifies the applicant to receive a tax credit as 
provided in this part.
(b)
"Infrastructure cost-burdened entity" includes a pass-through entity taxpayer, as 
defined in Section 
59-10-1402
, of a person described in Subsection (7)(a).
(8)
"Infrastructure-related revenue" means an amount of tax revenue, for an entity creating 
a high cost infrastructure project, in a taxable year, that is directly attributable to a high 
cost infrastructure project, under:
(a)
Subsection 
59-24-103.5
(2)(e);
(b)
Title 59, Chapter 5, Part 1, Oil and Gas Severance Tax;
(c)
Title 59, Chapter 5, Part 2, Mining Severance Tax;
(d)
Title 59, Chapter 7, Corporate Franchise and Income Taxes;
(e)
Title 59, Chapter 10, Individual Income Tax Act; and
(f)
Title 59, Chapter 12, Sales and Use Tax Act.
(9)
"Mineral processing project" means a project that is designed to:
(a)
process, smelt, refine, convert, separate, or otherwise beneficiate metalliferous 
minerals as defined in Section 
59-5-201
 or a metalliferous compound as defined in 
Section 
59-5-202
;
(b)
calcine limestone or manufacture cement;
(c)
process, refine, or otherwise beneficiate chloride compounds, salts, potash, gypsum, 
sulfur or sulfuric acid, ammonium nitrate, phosphate, or uintaite; or
(d)
convert or gasify coal to recover chemical compounds, gases, or minerals.
(10)
"Office" means the Office of Energy Development created in Section 
79-6-401
.
(11)
"Tax credit" means a tax credit under Section 
59-5-305
, 
59-7-619
,
 or 
59-10-1034
.
(12)
"Tax credit certificate" means a certificate issued by the office to an infrastructure 
cost-burdened entity that:
(a)
lists the name of the infrastructure cost-burdened entity;
(b)
lists the infrastructure cost-burdened entity's taxpayer identification number;
(c)
lists, for a taxable year, the amount of the tax credit authorized for the infrastructure 
cost-burdened entity under this part; and
(d)
includes other information as determined by the office.
(13)
(a)
"Underground mine infrastructure project" means a project that:
(i)
is designed to create permanent underground infrastructure to facilitate 
underground mining operations; and
(ii)
services multiple levels or areas of an underground mine or multiple underground 
mines.
(b)
"Underground mine infrastructure project" includes:
(i)
an underground access or a haulage road, entry, ramp, or decline;
(ii)
a vertical or incline mine shaft;
(iii)
a ventilation shaft or an air course; or
(iv)
a conveyor or a truck haulageway.
(14)
"Water purification project" means a project that, in order to meet applicable quality 
standards established under Title 19, Chapter 5, Water Quality Act, is designed to reduce 
the existing total dissolved solids or other naturally existing impurities contained in 
water sources:
(a)
located at a distance of not less than 2,000 feet below the surface;
(b)
associated with existing mineral operations; or
(c)
associated with deep water mining operations designed primarily for the 
revitalization of the Great Salt Lake.
(15)
"Water resource forecasting project" means a project that includes a network of 
permanent physical data collection systems designed to improve forecasting for the 
availability of seasonal water flows within the state, including flash flooding and other 
event-driven water flows resulting from localized severe weather events.
Section 17, Section 
79-6-603
 is amended to read:
79-6-603
Effective 
05/07/25
Applies beginning 
01/01/25
. Tax credit -- Amount 
-- Eligibility -- Reporting.
(1)
(a)
Before the office enters into an agreement described in Subsection (3) with an 
applicant regarding a project, the office, in consultation with the Utah Energy 
Infrastructure Board created in Section 
79-6-902
, and other state agencies as 
necessary, shall, in accordance with the procedures described in Section 
79-6-604
, 
certify:
(i)
that the project meets the definition of a high cost infrastructure project under this 
part;
(ii)
that the high cost infrastructure project will generate infrastructure-related 
revenue;
(iii)
the economic life of the high cost infrastructure project; and
(iv)
that the applicant has received a certificate of existence from the Division of 
Corporations and Commercial Code.
(b)
(i)
For purposes of determining whether a project meets the definition of a high 
cost infrastructure project,
Except as provided in Subsection 
(1)(b)(ii)
,
 the office 
shall consider a project to be a new project
,
for purposes of determining whether a 
project meets the definition of a high cost infrastructure project, 
if the project 
began no earlier than the taxable year before the year in which the applicant 
submits an application or a preliminary application for a tax credit.
(ii)
For the taxable year beginning on or after January 1, 2025, and beginning before 
January 1, 2026, the office may consider a project to be a new project if the 
applicant applies for a tax credit in accordance with Subsection 
(5)(a)
.
(2)
(a)
Before the office enters into an agreement described in Subsection (3) with an 
applicant regarding a project, the Utah Energy Infrastructure Board shall evaluate the 
project's net benefit to the state, including:
(i)
whether the project is likely to increase the property tax revenue for the 
municipality or county where the project will be located;
(ii)
whether the project would contribute to the economy of the state and the 
municipality, tribe, or county where the project will be located;
(iii)
whether the project would provide new infrastructure for an area where the type 
of infrastructure the project would create is underdeveloped;
(iv)
whether the project is supported by a business case for providing the revenue 
necessary to finance the construction and operation of the project;
(v)
whether the project would have a positive environmental impact on the state;
(vi)
whether the project promotes responsible energy development;
(vii)
whether the project would upgrade or improve an existing entity in order to 
ensure the entity's continued operation and economic viability;
(viii)
whether the project is less likely to be completed without a tax credit issued to 
the applicant under this part; and
(ix)
other relevant factors that the board specifies in the board's evaluation.
(b)
Before the office enters into an agreement described in Subsection (3) with an 
applicant regarding an energy delivery project, in addition to the criteria described in 
Subsection (2)(a) the Utah Energy Infrastructure Board shall determine that the 
project:
(i)
is strategically situated to maximize connections to an energy source project 
located in the state that is:
(A)
existing;
(B)
under construction;
(C)
planned; or
(D)
foreseeable;
(ii)
is supported by a project plan related to:
(A)
engineering;
(B)
environmental issues;
(C)
energy production;
(D)
load or other capacity; and
(E)
any other issue related to the building and operation of energy delivery 
infrastructure; and
(iii)
complies with the regulations of the following regarding the building of energy 
delivery infrastructure:
(A)
the Federal Energy Regulatory Commission;
(B)
the North American Electric Reliability Council; and
(C)
the Public Service Commission of Utah.
(c)
The Utah Energy Infrastructure Board may recommend that the office deny an 
applicant a tax credit if, as determined by the Utah Energy Infrastructure Board:
(i)
the project does not sufficiently benefit the state based on the criteria described in 
Subsection (2)(a); or
(ii)
for an energy delivery project, the project does not satisfy the conditions 
described in Subsection (2)(b).
(3)
Subject to the procedures described in Section 
79-6-604
, if an applicant meets the 
requirements of Subsection (1) to receive a tax credit, and the applicant's project 
receives a favorable recommendation from the Utah Energy Infrastructure Board under 
Subsection (2), the office shall enter into an agreement with the applicant to authorize 
the tax credit in accordance with this part.
(4)
The office shall grant a tax credit to an infrastructure cost-burdened entity, for a high 
cost infrastructure project, under an agreement described in Subsection (3):
(a)
for the lesser of:
(i)
the economic life of the high cost infrastructure project;
(ii)
20 years; or
(iii)
a time period, the first taxable year of which is the taxable year when the 
construction of the high cost infrastructure project begins and the last taxable year 
of which is the taxable year in which the infrastructure cost-burdened entity has 
recovered, through the tax credit, an amount equal to:
(A)
50% of the cost of the infrastructure construction associated with the high cost 
infrastructure project; or
(B)
if the high cost infrastructure project is a fuel standard compliance project, 
30% of the cost of the infrastructure construction associated with the high cost 
infrastructure project;
(b)
except as provided in Subsections (4)(a) and (d), in a total amount equal to 30% of 
the high cost infrastructure project's total infrastructure-related revenue over the time 
period described in Subsection (4)(a);
(c)
for a taxable year, in an amount that does not exceed the high cost infrastructure 
project's infrastructure-related revenue during that taxable year; 
(d)
that the infrastructure cost-burdened entity may use against severance tax or income 
tax, but not both; 
and
(d)
(e)
if the high cost infrastructure project is a fuel standard compliance project, in a 
total amount that is:
(i)
determined by the Utah Energy Infrastructure Board, based on:
(A)
the applicant's likelihood of completing the high cost infrastructure project 
without a tax credit; and
(B)
how soon the applicant plans to complete the high cost infrastructure project; 
and
(ii)
equal to or less than 30% of the high cost infrastructure project's total 
infrastructure-related revenue over the time period described in Subsection (4)(a).
(5)
(a)
For the taxable year beginning on or after January 1, 2025, and beginning before 
January 1, 2026, the office shall grant a tax credit certificate to an infrastructure 
cost-burdened entity:
(i)
that applies for a tax credit described in Section 
59-5-305
;
(ii)
that meets the requirements of Subsection 
(4)
 except that the first taxable year for 
which the infrastructure cost-burdened entity claims a tax credit is the taxable year 
beginning on or after January 1, 2024, and beginning before January 1, 2025; and
(iii)
in an amount that does not exceed the high cost infrastructure project's 
infrastructure-related revenue during the taxable year beginning on or after 
January 1, 2024, and beginning before January 1, 2025. 
(b)
The tax credit described in Subsection 
(5)(a)
 is in addition to a tax credit for which 
the infrastructure cost-burdened entity may claim against income tax or severance tax 
for the taxable year beginning on or after January 1, 2025, and beginning before 
January 1, 2026.
(5)
(6)
An infrastructure cost-burdened entity shall, for each taxable year:
(a)
file a report with the office showing the high cost infrastructure project's 
infrastructure-related revenue during the taxable year;
(b)
subject to Subsection 
(7)
(8)
, file a report with the office that is prepared by an 
independent certified public accountant that verifies the infrastructure-related revenue 
described in Subsection 
(5)(a)
(6)(a)
; and
(c)
provide the office with information required by the office to certify the economic life 
of the high cost infrastructure project.
(6)
(7)
An infrastructure cost-burdened entity shall retain records supporting a claim for a 
tax credit for the same period of time during which a person is required to keep books 
and records under Section 
59-1-1406
.
(7)
(8)
An infrastructure cost-burdened entity for which a report is prepared under 
Subsection 
(5)(b)
(6)(b)
 shall pay the costs of preparing the report.
(8)
(9)
The office shall certify, for each taxable year, the infrastructure-related revenue 
generated by an infrastructure cost-burdened entity.
Section 18, Section 
79-6-604
 is amended to read:
79-6-604
Effective 
05/07/25
Applies beginning 
01/01/25
. Tax credit -- 
Application procedure.
(1)
An applicant shall provide the office with:
(a)
an application for a tax credit certificate;
(b)
documentation that the applicant meets the requirements described in Subsection 
79-6-603(1)
, to the satisfaction of the office, for the taxable year for which the 
applicant seeks to claim a tax credit; and
(c)
documentation that expressly directs and authorizes the State Tax Commission to 
disclose to the office the applicant's returns and other information concerning the 
applicant that would otherwise be subject to confidentiality under Section 
59-1-403
or Section 6103, Internal Revenue Code.
(2)
(a)
The office shall, for an applicant, submit the documentation described in 
Subsection 
(1)(c)
 to the State Tax Commission.
(b)
Upon receipt of the documentation described in Subsection 
(1)(c)
, the State Tax 
Commission shall provide the office with the documentation described in Subsection 
(1)(c)
.
(3)
If, after the office reviews the documentation from the State Tax Commission under 
Subsection 
(2)(b)
 and the information the applicant submits to the office under Section 
79-6-603
, the office, in consultation with the Utah Energy Infrastructure Board created 
in Section 
79-6-902
, determines that the applicant is not eligible for the tax credit under 
Section 
79-6-603
, or that the applicant's documentation is inadequate, the office shall:
(a)
deny the tax credit; or
(b)
inform the applicant that the documentation supporting the applicant's claim for a tax 
credit was inadequate and request that the applicant supplement the applicant's 
documentation.
(4)
Except as provided in Subsection 
(5)
, if, after the office reviews the documentation 
described in Subsection 
(2)(b)
 and the information described in Subsection 
79-6-603(6)
79-6-603(5)
, the office, in consultation with the Utah Energy Infrastructure Board 
created in Section 
79-6-902
, determines that the documentation supporting an applicant's 
claim for a tax credit adequately demonstrates that the applicant is eligible for the tax 
credit under Section 
79-6-603
, the office shall, on the basis of the documentation:
(a)
enter, with the applicant, into the agreement described in Subsection 
79-6-603(3)
;
(b)
issue a tax credit certificate to the applicant; and
(c)
provide a duplicate copy of the tax credit certificate described in Subsection 
(4)(b)
 to 
the State Tax Commission.
(5)
The office may deny an applicant a tax credit based on the recommendation of the Utah 
Energy Infrastructure Board, as provided in Subsection 
79-6-603(2)
.
(6)
An infrastructure cost-burdened entity may not claim a tax credit
 under Section 
59-7-619
 or 
59-10-1034
 unless the infrastructure cost-burdened entity receives a tax 
credit certificate from the office.
(7)
An infrastructure cost-burdened entity that claims a tax credit shall retain the tax credit 
certificate in accordance with Subsection 
79-6-603(7)
79-6-603(6)
.
(8)
Except for the information that is necessary for the office to disclose in order to make 
the report described in Section 
79-6-605
, the office shall treat a document an applicant 
or infrastructure cost-burdened entity provides to the office as a protected record under 
Section 
63G-2-305
.
Section 19. 
Effective Date.
This bill takes effect on 
May 7, 2025
.
Section 20. 
Retrospective operation.
The actions affecting the following sections have retrospective operation for a taxable 
year beginning on or after January 1, 2025:
(1)
Section 
40-6-24
;
(2)
Section 
59-5-101
;
(3)
Section 
59-5-102
;
(4)
Section 
59-5-301
;
(5)
Section 
59-5-302
;
(6)
Section 
59-5-303
;
(7)
Section 
59-5-304
;
(8)
Section 
59-5-305
;
(9)
Section 
59-7-619
;
(10)
Section 
59-10-1034
;
(11)
Section 
79-6-401
;
(12)
Section 
79-6-602
;
(13)
Section 
79-6-603
; and
(14)
Section 
79-6-604
.
3-14-25 2:40 PM