Introduced[/paste:font] S.B. 75 3rd Sub.
Representative Casey Snider proposes the following substitute bill:
1 MINERAL AMENDMENTS
2 2024 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Derrin R. Owens
5 House Sponsor: Carl R. Albrecht
6
7 LONG TITLE
8 General Description:
9 This bill addresses mineral exploration or development.
10 Highlighted Provisions:
11 This bill:
12 ▸ amends definitions, including the definition of "eligible claimant";
13 ▸ modifies aggregate value of tax credit certificates that may be issued under certain
14 circumstances;
15 ▸ addresses federal agency consultation before certain acts related to federal
16 designations and minerals; and
17 ▸ makes technical changes.
18 Money Appropriated in this Bill:
19 None
20 Other Special Clauses:
21 This bill has retrospective operation.
22 Utah Code Sections Affected:
23 AMENDS:
24 40-6-24, as enacted by Laws of Utah 2022, Chapter 108
25 ENACTS:
26 63L-2-202, Utah Code Annotated 1953
27
28 Be it enacted by the Legislature of the state of Utah:
29 Section 1. Section 40-6-2459-5-201.
113 [(i) "Mine reopening date" means with respect to a closed mine, the earliest date on
114 which each of the following is true:]
115 [(i) the owner or owner's agent obtains for the closed mine each of the following that a
116 reasonable and prudent person would consider adequate to begin operation of a closed mine:]
117 [(A) each federal, state, or local government approval, permit, license, and certificate;
118 and]
119 [(B) each right in land, including each permit, lease, and title;]
120 [(ii) each approval, permit, license, and certificate described in Subsection (1)(i)(i)(A)
121 is in effect without any modification that might jeopardize resuming operation of the closed
122 mine; and]
123 [(iii) resuming operation of the closed mine is not temporarily or permanently enjoined
124 by an order or other decision of a court or administrative body.]
125 [(j)] (g) "Mineral" means:
126 (i) a metalliferous mineral as defined in Section 59-5-201; or
127 (ii) a metalliferous compound as defined in Section 59-5-202.
128 [(k)] (h) "Tax credit certificate" means a certificate issued by the division that:
129 (i) lists the eligible claimant's name and taxpayer identification number;
130 (ii) lists the amount of the eligible claimant's tax credit authorized under this section
131 for a taxable year; and
132 (iii) includes other information as determined by the division.
133 (2) An eligible claimant that seeks to claim a tax credit under Section 59-5-216 for a
134 taxable year shall apply to the division for a tax credit certificate.
135 (3) The eligible claimant shall apply for a tax credit certificate on a form provided by
136 the division and approved by the State Tax Commission.
137 (4) The eligible claimant shall include in the application for a tax credit certificate the
138 following information for the taxable year in which the [person] eligible claimant seeks a tax
139 credit certificate:
140 (a) proof that the eligible claimant satisfies the requirements of Subsection [(1)(d)]
141 (1)(b);
142 (b) a description of the mine where the exploration activity occurred;
143 (c) proof of each certified expenditure, including the amount; and
144 (d) any other information the division requests.
145 (5) (a) After the division receives an application for a tax credit certificate, for each
146 expenditure in the application, the division shall approve the expenditure as a certified
147 expenditure or deny the expenditure as an expenditure that is not a certified expenditure.
148 (b) If the division denies an expenditure, the division shall provide the person a written
149 explanation that states each reason the division denied the expenditure and give the person an
150 opportunity to correct any deficiency or provide additional information.
151 (6) (a) The tax credit certificate shall state the amount of the tax credit, which is equal
152 to the amount of the eligible claimant's certified expenditures as approved by the division in
153 accordance with Subsection (5).
154 (b) The division may not issue a tax credit certificate for certified expenditures related
155 to exploration activities at a mine if the aggregate value of tax credit certificates issued for
156 certified expenditures related to exploration activities at the same mine exceeds $20,000,000.
157 (c) Notwithstanding Subsection (6)(b), the division may not issue a tax credit
158 certificate for certified expenditures related to exploration activities at a mine if:
159 (i) the aggregate value of tax credit certificates issued to the same mine exceeds
160 $30,000,000; and
161 (ii) the exploration activity is undertaken to produce a mineral for which the United
162 States is greater than 50% net import reliant in the calendar year in which an exploration
163 activity is commenced as provided in the Mineral Commodity Summaries published by the
164 United States Geological Survey.
165 (7) (a) An eligible claimant may assign a tax credit certificate to another person if the
166 eligible claimant provides written notice to the division in a form prescribed by the division,
167 that includes:
168 (i) the eligible claimant's written certification or other proof that the eligible claimant
169 irrevocably elects not to claim the tax credit authorized by the tax credit certificate; and
170 (ii) contact information for the person to whom the eligible claimant is assigning the
171 tax credit certificate.
172 (b) If the eligible claimant meets the requirements of Subsection (7)(a), the division
173 shall issue an assigned tax credit certificate to the person identified by the eligible claimant in
174 an amount equal to the eligible claimant's tax credit certificate.
175 (c) A person to whom an eligible claimant assigns a tax credit certificate may claim the
176 tax credit under Section 59-5-216 as if the person met the requirements of Section 59-5-216, if
177 the person files a return under Title 59, Chapter 5, Part 2, Mining Severance Tax.
178 (8) An eligible claimant that receives a tax credit certificate in accordance with this
179 section shall retain the tax credit certificate for the same time period that a person is required to
180 keep books and records under Section 59-1-1406.
181 (9) The division shall annually submit to the State Tax Commission an electronic list
182 that includes:
183 (a) the name and identifying information for:
184 (i) each eligible claimant to whom the division issues a tax credit certificate; and
185 (ii) each person to whom an eligible claimant assigns a tax credit certificate in
186 accordance with Subsection (7);
187 (b) for each person described in Subsection (9)(a), the amount of the tax credit stated
188 on the tax credit certificate; and
189 (c) for each person described in Subsection (9)(a)(ii), information necessary to identify
190 the tax credit certificate that the eligible claimant assigned to the person.
191 (10) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
192 the division may make rules governing the administration of the tax credit certificate process
193 described in this section.
194 Section 2. Section 63L-2-20240-6-24, effective May 1, 2024, has retrospective operation to January 1, 2024. STATE
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