SB 31: "An Act relating to a geothermal electricity production tax credit under the Alaska Net Income Tax Act."
00 SENATE BILL NO. 31 01 "An Act relating to a geothermal electricity production tax credit under the Alaska Net 02 Income Tax Act." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 43.20 is amended by adding a new section to article 1 to read: 05 Sec. 43.20.046. Geothermal electricity production tax credit. (a) A taxpayer 06 that owns a commercial geothermal electric energy system capable of producing at 07 least 400 kilowatts of electricity may claim a geothermal electricity production tax 08 credit if 09 (1) the commercial geothermal electric energy system supplies all or 10 part of the energy required by commercial units owned or used by the taxpayer; or 11 (2) the taxpayer sells all or part of the energy produced by the 12 commercial geothermal electric energy system as a commercial enterprise. 13 (b) A taxpayer may claim a tax credit under this section in the amount of 35 14 cents for each kilowatt-hour of geothermal electricity produced or sold. A tax credit
01 may be claimed for each of the first four years after the date the commercial 02 geothermal electric energy system is placed into service. 03 (c) An unused tax credit under this section may be carried forward and applied 04 against the tax liability of the taxpayer for four years after the date the commercial 05 geothermal electric energy system was placed into service. 06 (d) The department shall prepare an application form for a credit under this 07 section. 08 (e) In this section, 09 (1) "commercial geothermal electric energy system" means an active 10 geothermal electricity system capable of producing electricity for use by or sale to a 11 commercial unit or commercial entity; 12 (2) "geothermal electricity" means electricity produced solely from 13 energy contained in heat that continuously flows from below the ground.