Green Energy Supply Chain Franchise and Excise Tax Credit

Summary

A certified green energy supply chain manufacturer and campus affiliate, integrated customer, or integrated supplier of a green energy supply chain manufacturer are allowed a tax credit against their total franchise and excise taxes equal to the amount by which the actual charge for electricity exceeds the cost if the maximum certified rate had been applied during the applicable tax year. In other words, the tax credit is the difference between the actual electricity cost minus the cost if the maximum certified rate had been applied over a tax year. 

The maximum certified rate is a per kilowatt-hour price established through the issuance of a private letter ruling by the Commissioner of Revenue and approved by the Commissioner of Economic and Community Development and the Commissioner of Finance and Administration. The maximum certified rate established for a green energy supply chain manufacturer shall apply to any campus affiliate.

A certified green energy supply chain manufacturer is a manufacturer that has made a required capital investment in excess of two hundred fifty million dollars ($250,000,000) in constructing, expanding, or remodeling a facility engaged in manufacturing a product that is necessary for the production of green energy that is certified by the Commissioner of Revenue, the Commissioner of Economic and Community Development and the Commissioner of Environment and Conservation. In order for a facility to be eligible for the credit, the Commissioner of Economic and Community Development must determine that the investment is a result of the tax credit.