Bill Amendment: AZ SB1313 | 2013 | Fifty-first Legislature 1st Regular
Bill Title: Tax corrections
Status: 2013-04-16 - Governor Signed [SB1313 Detail]
Download: Arizona-2013-SB1313-SENATE_ADOPTED_AMENDMENT_Worsley_flr_amend_ref_Bill_adopted.html
Bill
Number: S.B. 1313
Worsley Floor Amendment
Amendment drafted by: Bill Ritz
FLOOR AMENDMENT EXPLANATION
The Worsley Floor amendment to SB 1313 makes a technical correction resolving a conflict in the Research and Development Credit statute between calendar year and fiscal year taxpayers and clarifies that the pre-approval process for applications for an existing tax credit program includes a mechanism to approve fiscal year taxpayers.
Fifty-first Legislature Worsley
First Regular Session S.B. 1313
WORSLEY FLOOR AMENDMENT
SENATE AMENDMENTS TO S.B. 1313
(Reference to printed bill)
Page 1, between lines 35 and 36, insert:
“Sec. 2. Section 41-1507, Arizona Revised Statutes, is amended to read:
41-1507. Tax credit for increased research activity; qualification for refund
A. The authority shall receive applications and evaluate and certify taxpayers who otherwise qualify for income tax credits for increased research activities to further qualify for income tax refunds.
B. An application for a refund of the taxpayer's credit must include:
1. The taxpayer's name, address and taxpayer identification number and a telephone number and e‑mail address of a person responsible for the application.
2. A general description of the taxpayer's business and the research activities conducted by the taxpayer.
3. The number of full-time employees on the taxpayer's payroll on December 31 of the last day of the taxpayer’s taxable year. Only taxpayers employing fewer than one hundred fifty full‑time employees qualify for a refund of the taxpayer's income tax credit.
4. The amount of the taxpayer's income tax credit for the taxable year.
5. Any other information required by the authority.
C. Each application shall include a processing fee equal to one per cent of the taxpayer's tax credit being refunded.
D. The authority shall process and evaluate each application and within thirty days after receiving the application either:
1. Issue to the applicant a certificate of qualification for the refund.
2. Notify the applicant of denial of the application with specific reasons for the denial. A denial of the application does not preclude a subsequent application if the applicant is able to correct any error or deficiency.
E. The authority shall not approve refunds exceeding a total of five million dollars in any calendar year. Refunds are allowed on a first come, first served basis, according to the date of application. An approved amount applies against the dollar limit for the year in which the application was submitted. If, at the end of any year, an unused balance occurs under the dollar limit prescribed by this subsection, the balance shall be reallocated for the purposes of this section in the following year.
F. The authority, with the cooperation of the department of revenue, shall adopt rules and publish and prescribe forms and procedures as necessary to effectuate the purposes of this section.
Sec 3. Section 41-1510.01, Arizona Revised Statutes, is amended to read:
41-1510.01. Solar energy tax incentives; qualification
A. The authority shall establish a procedure for identifying commercial solar energy projects that qualify for the purposes of the commercial solar energy income tax credits under sections 43‑1085 and 43‑1164.
B. To qualify for the tax credits, a business must apply in a form prescribed by the authority, including:
1. The name, address and telephone number of the business purchasing the solar energy device or system.
2. The name, address and telephone number of a contact person with the business.
3. The projected date that the installation of the solar energy device or system will begin and the projected finish date.
4. The location where the solar energy device or system will be installed.
5. The type of solar energy device or system, its total cost, excluding financing costs, and the estimated annual performance level.
6. The projected amount of the credit against state income taxes.
C. Applications under this section are confidential and are not subject to disclosure under title 39 for eighteen months after the date of application.
D. The authority shall:
1. establish a preapproval process for the certification of applications.
1. 2. Review and evaluate each submitted application.
2. 3. Determine within thirty days after receiving the application whether the application meets the criteria for the purposes of the commercial solar energy income tax credits.
3. 4. Provide its initial certification of a project to the applicant and to the department of revenue. The initial certification shall include a unique identifying number for each certified installation.
E. On the completion of each certified installation:
1. The business must:
(a) Certify that the installed solar energy device or system is operational.
(b) Provide the total amount of income tax credits to be claimed.
2. The authority shall review the installation expenses and issue a credit certificate to the business. The credit certificate shall include the assigned identifying number.
3. The authority shall transmit the credit information and certificate number to the department of revenue.
F. The authority shall not certify tax credits under this section in any calendar year that exceed a total of one million dollars. the total allowed under this section shall be reserved for the taxpayer based on preapproval under subsection d of this section. the final credit certificate issued under subsection e of this section shall not exceed the amount reserved. a taxpayer whose taxable year overlaps two calendar years may request approval from the second calendar year’s cap if the first year’s cap is exhausted and the application under subsection b of this section is submitted before the end of the taxpayer’s taxable year. nothing in this section shall be construed as allowing the taxpayer to claim credits under sections 43-1085 and 43-1164 in any taxable year other than the taxable year the solar energy device was installed.”
G. The authority and the department of revenue shall collaborate in adopting rules that are necessary to accomplish the intent and purpose of this section.”
Renumber to conform
Amend title to conform
