15-6-226. (Temporary) Tax exemption for noncommercial electrical generation machinery and equipment. (1) (a) Subject to the conditions of this section, noncommercial electrical generation machinery and equipment that are owned or leased by a person and that are used for the production of electrical energy for use by the person in the person's business are exempt from taxation.
     (b) The exemption allowed by this section applies to electrical energy produced from electrical generation machinery and equipment owned or leased by a person if more than 80% of the electrical energy generated is used by the person in the person's business even if the person sells a portion of the electrical energy produced to another entity. However, the amount of the exemption is proportional to the ratio of kilowatt hours used by the person in the person's business to the total kilowatt hours produced.
     (2) (a) For the purposes of this section, "electrical generation machinery and equipment" means any combination of a physically connected generator or generators, associated prime movers, and other associated machinery and equipment that has a generating capacity of less than 80 megawatts. The term is limited to electrical generation machinery and equipment that are powered by fossil fuels.
     (b) The term does not include personal property used in the normal course of the person's business.
     (3) For the purposes of controlling emissions of air pollutants, electrical generation machinery and equipment are, if applicable, subject to the provisions of 75-2-211 and 75-2-215. Before granting the exemption allowed by this section, the department shall obtain information from the department of environmental quality to ensure that the electrical generation machinery and equipment comply with the provisions of 75-2-211 and 75-2-215. (Terminates December 31, 2004--sec. 5, Ch. 579, L. 2001.)

     History: En. Sec. 1, Ch. 579, L. 2001.