ID H0347

Purchasers of qualifying machinery and equipment for alternative electricity generation (fuel cells, hydro, wind, geothermal, biomass, cogeneration, solar, or landfill gas) may receive a sales tax rebate if they achieve commercial operation by December 31, 2014, and generate at least 25 kilowatts of electricity.

Qualifying machinery and equipment includes industrial fixtures and support facilities integral to electricity generation but excludes hand-powered tools, property with less than one year useful life, repair parts, replacement parts that don't improve efficiency, buildings, and certain building fixtures.

Taxpayers must obtain certification from a public utility, cooperative, municipality, or public utilities commission that the project will generate at least 25 kilowatts, then file a refund request with the state tax commission within three calendar years of tax payment.

For wind and solar facilities selling electricity to utilities regulated by the Idaho public utilities commission, taxpayers must obtain approval of a power purchase agreement by October 31, 2011.

The state tax commission may recapture rebate amounts if property is not used for electricity generation for 60 months, with recapture enforcement allowed up to five years after the project period ends.