Ariz. Admin. Code § 15-2C-503

Current through Register Vol. 30, No. 25, June 21, 2024

Section R15-2C-503 - Renewable Energy Production Tax Credit

A. For each year for which an owner of a qualified energy generator plans to claim a renewable energy production tax credit, the owner shall file one of the following applications:

1. An initial application in accordance with subsection (B) for:

a. Energy produced in 2011 for which an owner of a qualified energy generator plans to claim a credit on the 2011 tax return filed in 2012, and

b. Energy produced after 2011 for which an owner of a qualified energy generator did not have a place on the prior year's Credit Authorization List for the renewable energy production tax credit under A.R.S. § 43-1083.02(G).

2. A renewal application in accordance with subsection (C) for an owner of a qualified energy generator that did have a place on the prior year's Credit Authorization List for the renewable energy production tax credit under A.R.S. § 43-1083.02(G).

B. An initial application shall include the following information:

1. The information required by A.R.S. § 43-1083.02(F).

2. The business structure of the applicant.

3. If the credit will be passed through to shareholders or partners, a list including the name, taxpayer identification number, and ownership percentage of each shareholder or partner. If the tax year end is other than December 31, and the shareholders or partners, or ownership percentages change, the applicant shall update the list for the tax year end by the due date of the applicant's Arizona return, including extensions.

4. The applicant's tax year end.

5. The name of the contact person, his or her title, telephone number and fax number.

6. If the applicant has any affiliates or subsidiaries, a list of the affiliates and subsidiaries, including the name, address, taxpayer identification number, and percentage of ownership. The applicant may substitute a federal Form 851, or other federal form with the required information, for this list.

7. Self-assigned name or identification number of the qualified energy generator.

8. Assessor's parcel number or numbers of the land on which the qualified energy generator is located or, if not available, the legal description.

9. The centrally valued property tax identification number for the personal property on the land.

10. The type of qualified energy resource used to generate electricity. If the qualified energy resource is biomass, the type of biomass.

11. The generating capacity of the qualified energy generator.

12. The number of kilowatt-hours of electricity produced for the calendar year.

13. Printouts for the calendar year from the production meter located at the qualified energy generator that:

a. Measures the output from the qualified energy generator, and

b. Provides the output information to a grid-tied energy management system.

14. A signed affidavit in which the applicant states that the information contained in the application is true and correct under penalty of perjury and that the qualified energy generator for which the applicant is claiming the credit did not produce electricity prior to 2011.

C. A renewal application shall include the information required by subsections (B)(1) through (6) and (B)(12) through (14). In addition, where the information required by subsections (B)(7) through (11) has changed since the prior year's application, the applicant shall provide the new information on the renewal application.

D. Copies of invoices or receipts from the electricity purchaser, verifying kilowatt-hours sold, shall be made available to the Department upon request.

E. If an owner owns more than one qualified energy generator, the owner shall submit a separate application for each qualified energy generator.

F. Each application shall be mailed separately in its own envelope by United States Postal Service Express Mail to: Arizona Department of Revenue, Renewable Energy Production Tax Credit Program, P.O. Box 25248, Phoenix, AZ 85002. Notwithstanding A.R.S. § 1-218(E)(1), the Department shall not accept applications through any other delivery method for purposes of this Section and A.R.S. § 43-1083.02.

G. For each initial application received in accordance with subsections (B) and (F), the Department shall assign a priority placement number that reflects the date and time on the Express Mail label, without regard to which time zone mailing took place.

H. If the Department receives more than one initial application in accordance with subsection (G) that it would assign the same priority placement number based on date and time on the Express Mail label, then the order received shall be determined by a random drawing of affected applications.

I. If the Department denies an application or approves a smaller amount of credit than the amount requested on the application, the Department's decision is an appealable agency action as defined in A.R.S. § 41-1092(3) and the applicant may appeal the decision under subsection (J) and A.R.S. Title 41, Chapter 6, Article 10.

J. To appeal a decision made under subsection (I), the applicant shall file a petition, in accordance with A.A.C. R15-10-105(B) and A.R.S. § 41-1092.03(B), within 30 days of receipt of the Department's decision.

K. For each decision made under subsection (I), the Department shall reserve the portion of the cap that the applicant would have been entitled to if the Department had approved the application in full, up to the generator cap limit, until the applicant waives or exhausts the appeal rights in subsection (J).

L. For the cap reserved under subsection (K), once the applicant waives or exhausts the appeal rights in subsection (J), the Department shall certify the cap to the next eligible applicant on the Credit Authorization List, until the full cap is certified.

M. In addition to the definitions provided in A.R.S. § 43-1083.02, unless the context provides otherwise, the following definitions apply to this Section and to implementation of A.R.S. § 43-1083.02:

1. "Cap" means the annual tax credit limit of $20 million in A.R.S. §§ 43-1164.03(G) and 43-1083.02(G).

2. "Generator cap" means the annual tax credit limit of $2 million per qualified energy generator in A.R.S. §§ 43-1164.03(G) and 43-1083.02(G).

Ariz. Admin. Code § R15-2C-503

New Section made by final rulemaking at 18 A.A.R. 600, effective April 8, 2012 (Supp. 12-1).