Bill Number: OK51RHB 1513 Date: 02-22-2007
HOUSE FLOOR VERSION
THE HOUSE OF REPRESENTATIVES
1 Monday, February 26, 2007
2 Committee Substitute for
3 House Bill No. 1513
4 COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 1513 - By: DEWITT,
5 DORMAN, JACKSON, COVEY, JETT AND LIEBMANN of the House and MYERS of
6 the Senate.
7 ( Revenue and taxation tax credit ethanol production
8 effective date
9 )
10 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
11 SECTION 1. AMENDATORY Section 1, Chapter 385, O.S.L. 2003,
12 as amended by Section 1, Chapter 294, O.S.L. 2005 (68 O.S. Supp.
13 2006, Section 2357.66), is amended to read as follows:
14 Section 2357.66 A. For tax years beginning after December
15 31, 2003[, and before January 1, 2011], there shall be allowed a
16 credit against the tax imposed by Section 2355 of this title, and
17 against the tax imposed by Section 2370 of this title, and against
18 the taxes imposed by Sections 624 and 628 of Title 36 of the
19 Oklahoma Statutes and actually paid to and placed into the General
20 Revenue Fund for any ethanol facility which is in production at the
21 rate of at least twenty-five percent (25%) of its name plate design
22 capacity for the production of ethanol, before denaturing, on or
23 before December 31, [2008] 2010. The completion of the
24 construction of such facilities must be after July 1, 2003. The
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1 credit shall be in the amount of twenty cents ($0.20) per gallon of
2 ethanol produced and shall be allowed for sixty (60) months
3 beginning with the first month for which the facility is eligible to
4 receive such credit [and ending not later than December 31, 2010].
5 The credit may only be claimed if the ethanol facility maintains an
6 average production rate of at least twenty-five percent (25%) of its
7 name plate design capacity for at least six (6) months after the
8 first month for which it is eligible to receive such credit.
9 B. As used in this section:
10 1. Ethanol facility means a plant or facility primarily
11 engaged in the production of ethanol or ethyl alcohol derived from
12 grain components, coproducts, or byproducts; and
13 2. Name plate design capacity means the original designed
14 capacity of an ethanol facility. Capacity may be specified as
15 bushels of grain ground or gallons of ethanol produced per year.
16 C. Any ethanol facility eligible for a tax credit under
17 subsection A of this section shall also receive a credit against the
18 tax imposed by Section 2355 of this title in the amount of twenty
19 cents ($0.20) per gallon of ethanol produced in excess of the
20 original name plate design capacity which results from expansion of
21 the facility completed on or after July 1, 2003, and before December
22 31, [2006] 2010. Such tax credit shall be allowed for sixty (60)
23 months beginning with the first month for which production from the
24 expanded facility is eligible to receive such tax credit [and ending
25 not later than December 31, 2010].
26 D. 1. Beginning January 1, 2011, an ethanol facility shall
27 receive a credit against the tax imposed by Section 2355 of this
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1 title in the amount of seven and one-half cents ($0.075) per gallon
2 of ethanol, before denaturing, for new production for a period not
3 to exceed thirty-six (36) consecutive months.
4 2. For purposes of this subsection, new production means
5 production which results from a new facility, a facility which has
6 not received credits prior to January 1, 2011, or the expansion of
7 the capacity of an existing facility by at least two million
8 (2,000,000) gallons first placed into service after January 1, 2011,
9 as certified by the design engineer of the facility to the Oklahoma
10 Tax Commission.
11 3. For expansion of the capacity of an existing facility,
12 new production means annual production in excess of twelve times
13 the monthly average of the highest three (3) months of ethanol
14 production at an ethanol facility during the twenty-four-month
15 period immediately preceding certification of the facility by the
16 design engineer.
17 4. No credits shall be allowed under this subsection for
18 expansion of the capacity of an existing facility until production
19 is in excess of twelve times the three-month average amount
20 determined under this subsection during any twelve-consecutive-month
21 period beginning no sooner than January 1, 2011.
22 5. The amount of a credit granted pursuant to this section
23 based on new production shall be approved by the Tax Commission
24 based on such ethanol production records as may be necessary to
25 reasonably determine the level of new production.
26 E. 1. The credits described in this section shall be given
27 only for ethanol produced at a plant in this state at which all
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1 fermentation, distillation, and dehydration takes place. No credit
2 shall be given on ethanol produced or sold for use in the production
3 of distilled spirits.
4 2. Not more than twenty-five million (25,000,000) gallons of
5 ethanol produced annually at any single ethanol facility nor more
6 than seventy-five million (75,000,000) gallons of ethanol produced
7 annually at all ethanol facilities in this state shall be eligible
8 for the credits in subsections A and C of this section, and the
9 credits may only be claimed by a producer for the periods specified
10 in subsections A and C of this section.
11 3. Not more than ten million (10,000,000) gallons of ethanol
12 produced during any twelve-consecutive-month period at any single
13 ethanol facility nor more than thirty million (30,000,000) gallons
14 of ethanol produced annually at all ethanol facilities in this state
15 shall be eligible for the credit described in subsection D of this
16 section, and the credit may only be claimed by a producer for the
17 periods specified in subsection D of this section.
18 4. Not more than one hundred twenty-five million
19 (125,000,000) gallons of ethanol produced at an ethanol facility by
20 the end of the sixty-month period set forth in subsection A or C of
21 this section shall be eligible for the credit under such subsection.
22 An ethanol facility which receives a credit for ethanol produced
23 under subsection A or C of this section shall not receive a credit
24 under subsection D of this section until its eligibility to receive
25 a credit under subsection A or C of this section has been completed.
26 F. The Tax Commission shall prescribe an application form and
27 promulgate rules for claiming credits under this section.
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1 G. For purposes of ascertaining the correctness of any
2 application for claiming a credit provided in this section, the Tax
3 Commission may examine or cause to have examined, by any agent or
4 representative designated for that purpose, any books, papers,
5 records, or memoranda bearing upon such matters.
6 SECTION 2. This act shall become effective November 1, 2007.
7 COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET,
8 dated 02-22-07 - DO PASS, As Amended and Coauthored.
9 HB1513 HFLR- 3 -House of Representatives
10 UNDERLINED language denotes Amendments to present Statutes.
11 BOLD FACE CAPITALIZED language denotes Committee Amendments.
12 Strike thru language denotes deletion from present Statutes.
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