As Recommitted to the Senate Ways and Means Committee 1
123rd General Assembly 4
Regular Session Sub. H. B. No. 262 5
1999-2000 6
REPRESENTATIVES ROMAN-D.MILLER-NETZLEY-SULZER-TIBERI-CATES- 8
JACOBSON-TAYLOR-PRINGLE-CLANCY-PERZ-SCHULER-YOUNG- 9
MOTTLEY-GRENDELL-SCHUCK-O'BRIEN-VESPER-KREBS-PADGETT- 10
DePIERO-WILLAMOWSKI-BUEHRER-BOYD-JOLIVETTE-SCHURING- 11
ROBERTS-HOOD-SULLIVAN-METELSKY-SMITH-ALLEN-VAN VYVEN- 12
HOUSEHOLDER-KRUPINSKI-HOLLISTER-FORD-SALERNO-WOMER BENJAMIN- 13
FLANNERY-HARTNETT-DISTEL-PERRY-AUSTRIA-PETERSON-AMSTUTZ- 14
HAINES-CAREY-DAMSCHRODER-KILBANE-MAIER-BENDER-PATTON-VERICH- 15
BARNES-J. BEATTY-CORBIN-TRAKAS-TERWILLEGER-OLMAN-GERBERRY- 16
HARRIS-JONES-CALLENDER-BRITTON-GARDNER-R. MILLER-HOOPS- CALVERT- 18
SENATORS DRAKE-DiDONATO
_________________________________________________________________ 20
A B I L L
To amend sections 5727.391 and 5733.39, to enact 22
section 5703.55 of the Revised Code, and to 24
repeal the version of section 5733.39 of the
Revised Code that results from Am. Sub. S.B. 3 of 25
the 123rd General Assembly to prohibit the
Department of Taxation from putting social 27
security numbers on the outside of materials
mailed to taxpayers and to allow the Ohio coal 28
tax credit to be taken for additional compliance 29
facilities.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 31
Section 1. That sections 5727.391 and 5733.39 be amended 33
and section 5703.55 of the Revised Code be enacted to read as 34
follows:
Sec. 5703.55. THE DEPARTMENT OF TAXATION SHALL NOT PUT A 36
TAXPAYER'S SOCIAL SECURITY NUMBER ON THE OUTSIDE OF ANY MATERIAL 37
2
MAILED TO THE TAXPAYER.
Sec. 5727.391. (A) As used in this section: 46
(1) "Compliance facility" has the same meaning as in 48
section 4905.01 of the Revised Code MEANS PROPERTY THAT IS 50
DESIGNED, CONSTRUCTED, OR INSTALLED, AND USED, AT A COAL-FIRED 51
ELECTRIC GENERATING FACILITY FOR THE PRIMARY PURPOSE OF COMPLYING 52
WITH ACID RAIN CONTROL REQUIREMENTS UNDER TITLE IV OF THE "CLEAN 54
AIR ACT AMENDMENTS OF 1990," 104 STAT. 2584, 42 U.S.C.A. 7651, 56
AND THAT CONTROLS OR LIMITS EMISSIONS OF SULFUR OR NITROGEN
COMPOUNDS RESULTING FROM THE COMBUSTION OF COAL THROUGH THE 57
REMOVAL OR REDUCTION OF THOSE COMPOUNDS BEFORE, DURING, OR AFTER 58
THE COMBUSTION OF THE COAL, BUT BEFORE THE COMBUSTION PRODUCTS 59
ARE EMITTED INTO THE ATMOSPHERE. "Compliance facility" also 60
includes both ANY of the following: 61
(a) A FACILITY THAT REMOVES SULFUR COMPOUNDS FROM COAL 63
BEFORE THE COMBUSTION OF THE COAL AND THAT IS LOCATED OFF THE 64
PREMISES OF THE ELECTRIC GENERATING FACILITY WHERE THE COAL 65
PROCESSED BY THE COMPLIANCE FACILITY IS BURNED; 66
(b) MODIFICATIONS TO THE ELECTRIC GENERATING FACILITY 68
WHERE THE COMPLIANCE FACILITY IS CONSTRUCTED OR INSTALLED THAT 69
ARE NECESSARY TO ACCOMMODATE THE CONSTRUCTION OR INSTALLATION, 70
AND OPERATION, OF THE COMPLIANCE FACILITY; 71
(c) A BYPRODUCT DISPOSAL FACILITY, AS DEFINED IN SECTION 73
3734.051 OF THE REVISED CODE, THAT EXCLUSIVELY DISPOSES OF WASTES 75
PRODUCED BY THE COMPLIANCE FACILITY AND OTHER COAL COMBUSTION
BYPRODUCTS PRODUCED BY THE GENERATING UNIT IN OR TO WHICH THE 76
COMPLIANCE FACILITY IS INCORPORATED OR CONNECTED REGARDLESS OF 77
WHETHER THE BYPRODUCT DISPOSAL FACILITY IS LOCATED ON THE SAME 78
PREMISES AS THE COMPLIANCE FACILITY OR GENERATING UNIT THAT 79
PRODUCES THE WASTES DISPOSED OF AT THE FACILITY; 80
(d) FACILITIES OR EQUIPMENT THAT IS ACQUIRED, CONSTRUCTED, 82
OR INSTALLED, AND USED, AT A COAL-FIRED ELECTRIC GENERATING 83
FACILITY EXCLUSIVELY FOR THE PURPOSE OF HANDLING THE BYPRODUCTS 84
PRODUCED BY THE COMPLIANCE FACILITY OR OTHER COAL COMBUSTION 85
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BYPRODUCTS PRODUCED BY THE GENERATING UNIT IN OR TO WHICH THE 86
COMPLIANCE FACILITY IS INCORPORATED OR CONNECTED; 87
(e) A flue gas desulfurization system that is connected to 89
a coal-fired electric generating unit and that either was placed 90
in service prior to July 10, 1991, or construction of which was 92
commenced prior to that date; 93
(b)(f) Facilities or equipment that is acquired, 95
constructed, or installed, and used, at a coal-fired electric 96
generating unit primarily for the purpose of handling the 97
byproducts produced by a compliance facility or other coal 98
combustion byproducts produced by the generating unit in or to 99
which the compliance facility is incorporated or connected. 100
(2) "Ohio coal" has the same meaning as in section 4913.01 102
of the Revised Code. 103
(B) An electric company shall be allowed a credit against 105
the tax computed under section 5727.38 of the Revised Code for 106
using Ohio coal in any of its coal-fired electric generating 107
units. The credit shall be claimed in the company's annual 108
statement required under division (A) of section 5727.31 of the 109
Revised Code at the rate of three dollars per ton of Ohio coal 111
burned, during the same twelve-month period used in determining 112
gross receipts and on or after January 1, 2000, in a coal-fired 114
electric generating unit under both of the following conditions: 115
(1) The coal-fired electric generating unit is owned by 117
the company claiming the credit or leased by that company under a 118
sale and leaseback transaction; 119
(2) A compliance facility is attached to, incorporated in, 121
or used in conjunction with the coal-fired generating unit. 122
(C) If the credit allowed under this section exceeds the 124
total taxes due for the current year, the tax commissioner shall 125
credit the excess against the taxes due for succeeding years 126
until the full amount of the credit is granted. 127
(D) The director of environmental protection, upon the 129
request of the tax commissioner, shall certify whether a facility 130
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is a compliance facility. In the case of a compliance facility 131
owned by an electric company, the public utilities commission 132
shall certify to the tax commissioner the cost of the facility as 133
of the date it was placed in service. In the case of a 134
compliance facility owned by a person other than an electric 135
company, the tax commissioner shall determine the cost of the 136
facility as of the date it was placed in service; if the owner of 137
such a facility fails to furnish the information necessary to 138
make that determination, no credit shall be allowed. 139
Sec. 5733.39. (A) As used in this section: 148
(1) "Compliance facility" means property that is designed, 150
constructed, or installed, and used, at a coal-fired electric 151
generating facility for the primary purpose of complying with 152
Phase I acid rain control requirements under Title IV of the 154
"Clean Air Act Amendments of 1990," 104 Stat. 2584, 42 U.S.C.A. 155
7651, and that controls or limits emissions of sulfur or nitrogen 156
compounds resulting from the combustion of coal through the 157
removal or reduction of those compounds before, during, or after 158
the combustion of the coal, but before the combustion products 159
are emitted into the atmosphere. "Compliance facility" also 160
includes any of the following: 161
(a) A facility that removes sulfur compounds from coal 163
before the combustion of the coal and that is located off the 164
premises of the electric generating facility where the coal 165
processed by the compliance facility is burned; 166
(b) Modifications to the electric generating facility 168
where the compliance facility is constructed or installed that 169
are necessary to accommodate the construction or installation, 170
and operation, of the compliance facility; 171
(c) A byproduct disposal facility, as defined in section 173
3734.051 of the Revised Code, that exclusively disposes of wastes 174
produced by the compliance facility and other coal combustion 175
byproducts produced by the generating unit in or to which the 176
compliance facility is incorporated or connected regardless of 177
5
whether the byproduct disposal facility is located on the same 178
premises as the compliance facility or generating unit that 179
produces the wastes disposed of at the facility; 180
(d) Facilities or equipment that is acquired, constructed, 182
or installed, and used, at a coal-fired electric generating 183
facility exclusively for the purpose of handling the byproducts 184
produced by the compliance facility or other coal combustion 185
byproducts produced by the generating unit in or to which the 186
compliance facility is incorporated or connected; 187
(e) A flue gas desulfurization system that is connected to 190
a coal-fired electric generating unit and that either was placed 191
in service prior to July 10, 1991, or construction of which was 192
commenced prior to that date;
(f) Facilities or equipment acquired, constructed, or 195
installed, and used, at a coal-fired electric generating unit
primarily for the purpose of handling the byproducts produced by 196
a compliance facility or other coal combustion byproducts 197
produced by the generating unit in or to which the compliance 198
facility is incorporated or connected. 199
(2) "Ohio coal" has the same meaning as in section 4913.01 202
of the Revised Code. 203
(3) "Sale and leaseback transaction" has the same meaning 205
as in section 5727.01 of the Revised Code. 208
(B) An electric company shall be allowed a nonrefundable 211
credit against the tax imposed by section 5733.06 of the Revised 213
Code for Ohio coal used in any of its coal-fired electric 216
generating units after April 30, 2001, but before January 1, 217
2005. Section 5733.057 of the Revised Code shall apply when 220
calculating the credit allowed by this section. The credit shall 222
be claimed at the rate of three dollars per ton of Ohio coal 223
burned in a coal-fired electric generating unit during the 224
taxable year ending immediately preceding the tax year. The 225
credit is allowed only if both of the following conditions are 226
met during such taxable year: 227
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(1) The coal-fired electric generating unit is owned and 229
used by the company claiming the credit or leased and used by 230
that company under a sale and leaseback transaction. 231
(2) A compliance facility is attached to, incorporated in, 234
or used in conjunction with the coal-fired generating unit. 235
(C) The credit shall be claimed in the order required 238
under section 5733.98 of the Revised Code. The taxpayer may 240
carry forward any credit amount in excess of its tax due after 241
allowing for any other credits that precede the credit allowed 242
under this section in the order required under section 5733.98 of 243
the Revised Code. The excess credit may be carried forward for 245
three years following the tax year for which it is claimed under 246
this section.
(D) The director of environmental protection, upon the 249
request of the tax commissioner, shall certify whether a facility 250
is a compliance facility. In the case of a compliance facility 251
owned by an electric company, the public utilities commission 252
shall certify to the tax commissioner the cost of the facility as 253
of the date it was placed in service. In the case of a 254
compliance facility owned by a person other than an electric 255
company, the tax commissioner shall determine the cost of the 256
facility as of the date it was placed in service. If the owner 257
of such a facility fails to furnish the information necessary to 258
make that determination, no credit shall be allowed. 259
Section 2. That existing sections 5727.391 and 5733.39 of 261
the Revised Code are hereby repealed. 262
Section 3. The amendment of section 5727.391 of the 264
Revised Code by this act does not affect its earlier repeal, with 265
delayed effective date, by Section 8 of Am. Sub. S.B. 3 of the 267
123rd General Assembly.
Section 4. The version of section 5733.39 of the Revised 269
Code that results from Am. Sub. S.B. 3 of the 123rd General 270
Assembly is hereby repealed. This repeal does not affect the 271
version of section 5733.39 of the Revised Code as it results from 272
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Am. H.B. 384 of the 123rd General Assembly and is scheduled to 273
take effect January 1, 2002. 274
Section 5. Section 5733.39 of the Revised Code, as amended 276
by this act, shall take effect January 1, 2002. 277