Oregon Administrative Rules
Chapter 330 - DEPARTMENT OF ENERGY
Division 91 - BUSINESS ENERGY TAX CREDITS (BETC) FOR RENEWABLE ENERGY RESOURCE EQUIPMENT MANUFACTURING
Section 330-091-0120 - Preliminary Certificate Application Requirements
Universal Citation: OR Admin Rules 330-091-0120
Current through Register Vol. 63, No. 9, September 1, 2024
(1) Eligible facilities
(a) The Department may issue only one
Manufacturing BETC for each separate and distinct facility under these
rules.
(b)A proposed facility must
meet applicable codes and standards.
(2) Required information
(a) Persons requesting a Manufacturing BETC
shall apply on the Department-approved form for a preliminary certificate. In
addition to the information required in ORS
469.205, the applicant shall
provide the following information:
(A) The
name, address, and phone number of the applicant, owners of the facility, and
the developers of the project.
(B)
The applicant's federal tax identification number or social security number
which may be shared with the Department of Revenue to facilitate the
administration of the state tax law.
(C) Proposed facility start date and date
estimated for the commencement of operation. A facility's start date is the
date that the project applicant financially commits to the project. Financial
commitment includes, but is not limited to: making a down-payment or deposit,
signing a contract with a vendor, ordering material or equipment, beginning
construction or installation.
(D)
The proposed facility location within the geographical confines of
Oregon.
(E) Information
demonstrating that the proposed facility will comply with or have a variance
from the land use laws of the city or county where the facility will be
located.
(F) Information
demonstrating that the proposed facility will comply with all other local,
federal, and state laws.
(G) A list
of appropriate authorizations for all work performed including but not limited
to appropriate licenses, permits, or other authorizations that are required by
state or local jurisdiction for the facility.
(H) Information demonstrating the intended
operation, maintenance and use of the facility, including but not limited to:
the amount and type of jobs potentially created in the construction,
installation and operation of the facility in Oregon, the benefits of the
facility with regard to overall economic activity in this state and a
demonstrated intent that the facility will be maintained and operated for at
least five years after the facility is operational. If an applicant expects
that a facility will operate less than five years, the applicant may submit a
request for approval of the shorter operating period as part of their
application for preliminary certification. This request shall include
information describing the proposed facility and supporting the proposed
operating period. The Director will determine whether to approve the shorter
operating period and may include conditions, reductions or other limits on any
potential tax credits.
(I) A
declaration from the applicant that all property taxes for the facility have
been paid and there are no delinquent property taxes associated with the
facility.
(J) Information that
demonstrates that the facility will be used solely to manufacture equipment,
machinery or other products that will be used exclusively for renewable energy
resource facilities. An applicant shall provide sufficient information relating
to the specific characteristics of the equipment, machinery or other products
that demonstrate how such equipment, machinery or other products will be used
exclusively for renewable energy resource facilities and not for other
commercial purposes. In the case of a facility manufacturing Electric Vehicles
under the all-terrain-vehicles standards, an applicant shall provide
information that demonstrates that the vehicles will be used for agricultural,
commercial, industrial or governmental purposes.
(b) The Department may request additional
information from the applicant in order to determine whether multiple
applications have been made for the same facility. The department will make its
determination based on the following:
(A) All
applications under consideration will be reviewed against other current
applications, facilities that have received preliminary certification and
facilities that have received final certification within the past 12 months.
Further review shall be given to applications which when combined exceed the
annual limit for a tax credit found in ORS
469.200.
(B) Applications will be considered a single
facility unless each phase of development or each expansion of or addition to
existing facilities or production lines can be demonstrated to meet, through
increased production and number of jobs created, the requirements of ORS
469.197(4) and
these rules.
(c)
Anticipated capital expenditures and other costs as defined in these rules for
the erection, construction, installation or acquisition of the proposed
facility and its expected operational life.
(d) The payment required by OAR
330-091-0150(3).
(e) For a proposed
renewable energy resource equipment manufacturing facility:
(A) The applicant shall demonstrate that they
can meet ORS 469.197(4)(c) through
(f) by:
(i)
Describing the minimum level of direct employment that will be provided by the
facility during each of the tax years in which the tax credit will be claimed
and by describing the anticipated average annual direct employment during each
of those years, including the number of average hourly and annual wages of
employees by employment classifications by geographic location. The applicant
must also describe actions it will take to achieve cultural diversity in its
work force.
(ii) Demonstrating its
financial ability to construct and operate the proposed facility through
documentation such as independent credit ratings; credit references, including
letters from banks or other financial institutions attesting to the applicant's
credit worthiness; and other documentation demonstrating the applicant's
financial viability.
(iii)
Demonstrating that the facility will achieve long-term operation and success by
documenting the qualifications, capabilities and experience of the applicant in
the construction and operation of such facilities, the long-term commercial and
technical viability of the renewable energy resources manufacturing equipment
and the renewable energy resource facilities for which the equipment is
produced.
(iv) Certifying that
allowance of the tax credit is integral to the decision to expand or locate the
facility in Oregon.
(v) Before the
Director will approve a final certification, the Department may require the
applicant to enter into a performance agreement or other similar agreement for
the facility. Failure to comply with the terms of the performance agreement or
other similar agreement may be the basis for denial or revocation of the final
certification pursuant to OAR 330-091-0133.
(B) Any other information necessary to find
that a proposed facility complies with ORS
469.185 to
469.225 and these
rules.
(C) In considering such
applications, the Director may consult with other state agencies.
(D) The Director must find that:
(i) The applicant has demonstrated that it
has a reasonable likelihood of achieving the minimum level of employment
proposed and that such employment will contribute to public benefit, based on
the number of average hourly and annual wages of employees including benefits
by employment classifications by geographic location, and actions to achieve
cultural diversity in its workforce.
(ii) The applicant has a reasonable
likelihood of being financially viable based on its credit ratings and
references from banks and financial institutions attesting to its credit
worthiness.
(iii) The applicant has
the organizational expertise as demonstrated by qualifications and experience
to construct and operate the proposed facility.
(iv) The renewable energy resource equipment
and the renewable energy resource facilities for which the equipment is
produced have the commercial and technical viability to have a reasonable
likelihood to achieve long-term success.
(v) The facility will contribute to a
diversified portfolio of renewable energy resource equipment manufacturing
facilities.
(vi) The applicant has
certified that allowance of the tax credit is integral to the decision to
expand or locate in Oregon.
(3) Standards When Reconstructing a Facility: If a facility is reconstructed and an application for preliminary certification is filed seeking a tax credit on the reconstructed facility, any tax credit certified for the reconstructed facility will be reduced by the amount of the original tax credit remaining for the original facility.
(4) Eligible Costs:
(a) A Manufacturing BETC may be granted based
on the eligible costs of a facility that is used to manufacture equipment,
machinery or other products that will be used exclusively for renewable energy
resource facilities.
(b) Subject to
the facility cost limitations of OAR 330-091-0150 (1)(a) and the provisions of
OAR 330-091-0120 (4), eligible costs include any land purchase costs,
structures, buildings, installations, excavations, machinery, equipment or
devices, or any addition, reconstruction or improvements to land or existing
structures, buildings, installations, excavations, machinery, equipment or
devices, necessarily acquired, constructed or installed by a person in
connection with the conduct of a trade or business, that is used to manufacture
the equipment, machinery or other products that will be used exclusively for
renewable energy resource facilities.
(A)
Eligible costs do not include any costs of any land purchase costs, structures,
buildings, installations, excavations, machinery, equipment or devices, or any
addition, reconstruction or improvements to land or existing structures,
buildings, installations, excavations, machinery, equipment or devices that
have been subject in whole or in part to the facility cost limitation of OAR
330-091-0150 (1)(a) if such costs would exceed that cost limitation.
(B) Eligible costs do not include costs of a
facility that is used to manufacture equipment, machinery or other products not
used exclusively for renewable energy resource facilities.
(C) An application must demonstrate
compliance with these provisions to be accepted, including clearly describing
the specific characteristics of the equipment, machinery or other products that
demonstrate why such equipment, machinery or other products will be used
exclusively for renewable energy resource facilities and not for other
commercial purposes and therefore why the costs of such of such equipment,
machinery or other products are eligible costs.
(5) If the Department determines that the applicant qualifies for a Manufacturing BETC, the Department may issue a preliminary certification. The preliminary certification may contain specific criteria and conditions for the facility to meet in order to obtain a final certification based on the information provided in the application for the Manufacturing BETC and type of facility that is described in the application. In addition, the Department may require the applicant to enter into a performance agreement or other similar agreement as a condition of approval.
Stat. Auth.: ORS 469.040 & 469.165, 469.185 - 469.225, OL 2011, Ch. 474 HB2523
Stats. Implemented: OL 2011, Ch. 474 HB2523
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