In summary, the statute requires that, in order to qualify
as an integrated coal gasification powerplant, Taxpayer's Facility must (1) be
dedicated primarily to production of electricity or gas (2) for use by energy
utilities serving Indiana retail electric or gas utility consumers. Based on a
plain reading of the statutory provisions and in light of the legislative
findings at IC 4-4-11.6-12,
the Department finds that Taxpayer's Facility qualifies as an integrated coal
gasification powerplant as defined at IC 6-3.1-29-6
and also is dedicated primarily to serving Indiana retail electric or gas
utility consumers.
Given that Taxpayer's Facility qualifies as an integrated
coal gasification powerplant, and contingent upon the Indiana Economic
Development Corporation ("Corporation") awarding a tax credit to
Taxpayer, Taxpayer is eligible to receive the tax credit authorized under IC 6-3.1-29-14(a),
which provides:
A taxpayer that:
(1) is awarded a tax credit under this chapter by the
corporation; and
(2) complies with the conditions set forth in this chapter
and the agreement entered into by the corporation and the taxpayer under this
chapter;
is entitled to a credit against the taxpayer's state tax
liability for a taxable year in which the taxpayer places into service an
integrated coal gasification powerplant or a fluidized bed combustion
technology and for the taxable years provided in section 16 of this chapter.
The amount of credit to which Taxpayer is eligible to
receive is calculated under IC 6-3.1-29-15(a),
which provides:
Subject to section 16 of this chapter, the amount of the
credit to which a taxpayer is entitled for a qualified investment in an
integrated coal gasification powerplant is equal to the sum of the following:
(1) Ten percent (10%) of the taxpayer's qualified investment
for the first five hundred million dollars ($500,000,000) invested.
(2) Five percent (5%) of the amount of the taxpayer's
qualified investment that exceeds five hundred million dollars ($500,000,000)
only if the facility is dedicated primarily to serving Indiana retail electric
or gas utility consumers.
Taxpayer may choose to take the credit as a refundable
credit pursuant to IC 6-3.1-29-20.7(c)-(g),
which provide:
(c) Notwithstanding anything in this chapter to the
contrary, a taxpayer may elect in the manner prescribed by the department to
take and receive all credits to which the taxpayer is entitled under section 15
of this chapter (without regard to section 16 of this chapter) as a refundable
credit against the taxpayer's state tax liability, if any, over a period of
twenty (20) taxable years, beginning not later than the taxable year in which
the taxpayer places into service its integrated coal gasification powerplant.
If, in a taxable year, a taxpayer that makes an election under this subsection
has no state tax liability, the department shall pay to the taxpayer the full
amount of the refundable credit for that taxable year.
(d) The amount of a credit to which a taxpayer that makes an
election under subsection (c) is entitled for a particular taxable year equals
the result determined [as follows]:
STEP ONE: Determine the total credit amount to which the
taxpayer is entitled under section 15 of this chapter (without regard to
section 16 of this chapter).
STEP TWO: Divide the STEP ONE amount by twenty (20).
STEP THREE: Determine the ratio of Indiana coal to total coal
used in the taxpayer's integrated coal gasification powerplant in the taxable
year.
STEP FOUR: Multiply the STEP TWO and STEP THREE amounts.
(e) A taxpayer shall claim a refund under this section in
the manner provided by the department. The department shall pay the refunded
amount to the taxpayer not more than ninety (90) days after the date on which
the refund is claimed.
(f) The shareholders, members, or partners of a pass through
entity that makes an election under subsection (c) are not entitled to a credit
allowed under section 20(b) of this chapter.
(g) A credit allowed under this section is not assignable
under section 20.5 of this chapter.
Additionally, pursuant to IC 6-3.1-29-21,
in order to receive the credit discussed herein, the taxpayer must claim any
credit on its annual state income tax return. Along with the return, the
taxpayer must submit a copy of the commission's determination and certificate of
compliance required under section IC 6-3.1-29-19,
as well as all information that the department determines is necessary for the
calculation of the credit provided by this chapter.
