DRS: 12-426-28a, Renewable energy systems and cogeneration systems - Repealed effective 4/6/00

DRS has reproduced this regulation. This is an unofficial copy. Official copies of regulations ONLY are available from the Commission on Official Legal Publications, 111 Phoenix Avenue, Enfield, CT 06082,  colp@jud.state.ct.us. Copies of DRS forms and publications are available at http://www.ct.gov/drs

 

Repealed Effective 4/6/00

Conn. Agencies Regs. 12-426-28a. Renewable energy systems and cogeneration systems.

(a) In general. The sale of tangible personal property within this state is subject to the sales tax imposed under chapter 219 (Sales and Use Tax Act). The storage, consumption or other use within this state of tangible personal property purchased from any retailer for storage, consumption or other use within this state is subject to the use tax imposed under chapter 219. Subsection (39) of section 12-412 of the Connecticut General Statutes exempts from sales and use taxes the sale, and the storage, consumption or other use, of renewable energy systems (or parts or components thereof) or cogeneration systems (or parts or components thereof). Subsection (39) of section 12-412 also requires the secretary of the office of policy and management to adopt regulations which establish standards and specifications for renewable energy systems or cogeneration systems. Sections 16a-14-100 through 16a-14-102, inclusive, establish such standards and specifications. Subsection (39) of section 12-412 further requires the commissioner of revenue services to adopt regulations which prescribe procedures for qualification for the exemption there under. Subsections (c) and (d) of this section prescribe such procedures; subsection (c) pertains to the procedure where cogeneration systems and small power production facilities are involved and subsection (d) pertains to the procedure where renewable energy systems other than small power production facilities are involved. Subsection (b) of this section defines terms used herein.

(b) Definitions. As used in this section, the following terms have the meaning ascribed to them herein:

(1) "Commissioner" means the commissioner of revenue services.

(2) "Secretary" means the secretary of the office of policy and management.

(3) "Commission" means the federal energy regulatory commission.

(4) "Cogeneration system" or "system" means a cogeneration facility, as defined in 18 C.F.R. 292.202 (c), the primary function of which is reducing the use of conventional energy sources, and which has been determined by the secretary to meet the operating and efficiency standards set out in 18 C.F.R. 292.205 (a) or (b) and the ownership criteria set out in 18 C.F.R. 292.206.

(5) "Renewable energy system" means a system of related equipment specifically designed to collect, transfer, store, convert and use solar energy or wind, water or biomass energy, for the purpose of space heating or cooling, water heating, generating electricity, or any other application which in the absence of the system, would require the use of a conventional energy source. "Renewable energy system" includes structural components of building specifically designed to retain heat derived from solar energy "Renewable energy system" does not include a woodburning stove.

(6) "Small power production facility" or "facility" means a renewable energy system which is designed to generate electricity and which has been determined by the secretary to meet the size and fuel use standards set out in 18 C.F.R. 292.204 (a) and (b).

(7) "Renewable energy system other than a small power production facility" means a renewable energy system which is not designed to generate electric energy.

(8) "Parts or components of renewable energy systems" means only those parts or components which are integral and essential to the operation of such systems and includes those parts or components referred to in Section 16a-14-102.

(9) "Parts or components of cogeneration systems" means only those part or components which are integral and essential to the operation of such systems and includes those parts or components referred to in Section 16a-14-102.

(c) Procedure where a small power production facility or a cogeneration system is involved.

(1) Scope. This subsection prescribes the procedure for qualification for exemption from tax where a small power production facility or a cogeneration system is involved. The prospective purchaser may elect either to follow the procedure set out in subdivision (2) of this subsection - the up-front exemption procedure - or to follow the procedure set out in subdivision (3) of this subsection - the refund procedure. The up-front exemption procedure permits tax-free purchases. The refund procedure permits claims for refund of taxes paid on purchases.

(2) Up-front exemption procedure. This subdivision describes the procedure to be followed where the prospective purchaser wishes to make tax-free purchases. Paragraph (A) sets out the information to be submitted to the secretary. The type of information varies with the size of the project. Paragraph (B) describes what the secretary must do upon receipt of the information. Paragraph (C) describes what the prospective purchaser must do upon receipt of the exemption certificate. Paragraph (D) describes what the retailer must do upon receipt of the exemption certificate.

(A) The type of information which must be submitted depends on the number of kilowatts of electric energy which a small power production facility or a cogeneration system is designed to generate.

(i) If the facility or system is designed to generate 50 kilowatts or less of electric energy, the prospective purchaser shall submit -

(aa) in the case of a cogeneration system, the information required undo 18 C.F.R. 292.207 (b) (2) and (4).

(bb) in the case of a small power production facility, the information required under 18 C.F.R. 292.207 (b)(2) and (3).

(cc) additional information deemed necessary by the secretary.

(ii) If the facility or system is designed to generate 100 kilowatts or less but more than 50 kilowatts of electric energy, the prospective purchaser shall submit

(aa) except as hereinafter provided, the information described in subparagraph (i) or an order from the commission granting the application for certification of the small power production facility or cogeneration system.

(bb) engineering drawings clearly identifying all components of the facility or system and their intended function.

(cc) a statement by a professional engineer certifying that the facility or system meets, in the case of a system, the operating and efficiency standards set out in 18 C.F.R. 292.205 (a) or (b), and, in the case of a facility, the size and fuel use standards set out in 18 C.F.R. 292.204 (a) and (b), and that the components are integral and necessary to the facility or system.

(dd) additional information deemed necessary by the secretary.

(iii) If the facility or system is designed to generate more than 100 kilowatts of electric energy, the prospective purchaser shall submit -

(aa) except as hereinafter provided, an order from the commission granting the application for certification of the small power production facility or cogeneration system.

(bb) engineering drawings clearly identifying all components of the facility or system and their intended function.

(cc) a statement by a professional engineer certifying that the facility or system meets, in the case of a system, the operation and efficiency standards set out in 18 C.F.R. 292.205 (a) or (b), and, in the case of a facility, the size and fuel use standards set out in 18 C.F.R. 292.204 (a) and (b), and that the components are integral and necessary to the facility or system.

(dd) additional information deemed necessary by the secretary.

(iv) The information required to be submitted by subparagraph (i), (ii) or (iii) shall be sent to: Office of Policy and Management, 80 Washington Street, Hartford, Connecticut 06106, Attn: Energy Division, Electricity Policy Unit. The secretary shall retain such information with his records.

(B) Within ninety days of receipt of the information required by paragraph (A), the secretary shall determine which components, if any, of the facility or system meet the standards and specifications established in sections 16a-14-100 through 16a-14-102, inclusive. Notice of such determination shall be sent to the prospective purchaser and shall, if appropriate, be accompanied by an exemption certificate, the form of which shall be prescribed by the commissioner. The prospective purchaser shall retain the notice of determination with its records. The secretary shall retain a copy of the notice of determination with his records.

(C) The prospective purchaser, having listed all items being purchased on the exemption certificate, shall give the certificate to the retailer. The purchaser shall retain a copy of the certificate and the invoice and receipt pertaining to the purchase.

(D) The retailer shall retain the exemption certificate, and a copy of the invoice and receipt pertaining to the sale.

(3) Refund procedure. This subdivision describes the procedure to be followed where the purchaser pays the tax but wishes to claim a refund subsequently. Paragraph (A) sets out the information to be submitted to the secretary. The type of information varies with the size of the project. Paragraph (B) describes what the secretary must do upon receipt of the information.

(A) The type of information which must be submitted depends on the number of kilowatts of electric energy which a small power production facility or a cogeneration system is designed to generate.

(i) If the facility or system is designed to generate 50 kilowatts or less of electric energy, the purchaser shall submit:

(aa) in the case of a cogeneration system, the information required under 18 C.F.R. 292.207 (b) (2) and (4), and, in the case of a small power production facility, the information required under 18 C.F.R. 292.207 (b) (2) and (3).

(bb) the invoice and receipt pertaining to the purchase.

(cc) additional information deemed necessary by the secretary.

(ii) If the facility or system is designed to generate 100 kilowatts or less but more than 50 kilowatts of electric energy, the purchaser shall submit:

(aa) except as hereinafter provided, the information described in subparagraph (i) (aa) or an order from the commission granting the application for certification of the small power production facility or cogeneration system.

(bb) the invoice and receipt pertaining to the purchase.

(cc) engineering drawings clearly identifying all components of the facility or system and their intended function.

(dd) a statement by a professional engineer certifying that the facility or system meets, in the case of a system, the operating and efficiency standards set out in 18 C.F.R. 292.205 (a) or (b), and, in the case of a facility, the size and fuel use standards set out in 18 C.F.R. 292.204 (a) and (b), and that the components are integral and necessary to the facility or system.

(ee) additional information deemed necessary by the secretary.

(iii) If the facility or system is designed to generate more than 100 kilowatts of electric energy, the purchaser shall submit:

(aa) except as hereinafter provided, an order from the commission granting the application for certification of the small power production facility or cogeneration system.

(bb) the invoice and receipt pertaining to the purchase.

(cc) engineering drawings clearly identifying all components of the facility or system and their intended function.

(dd) a statement by a professional engineer certifying that the facility or system meets, in the case of a system, the operating and efficiency standards set out in 18 C.F.R. 292.205 (a) or (b), and, in the case of a facility, the size and fuel use standards set out in 18 C.F.R. 292.204 (a) and (b), and that the components are integral and necessary to the facility or system.

(ee) additional information deemed necessary by the secretary.

(iv) The information required to be submitted by subparagraph (i), (ii) or (iii) shall be sent to: Office of Policy and Management, 80 Washington Street, Hartford, Connecticut 06106, Attn: Energy Division, Electricity Policy Unit. The secretary shall retain such information with his records. The purchaser shall retain a copy of such information with its records.

(B) Within ninety days of receipt of the information required by paragraph (A), the secretary shall either allow or disallow, in whole or in part, the claim for refund. Notice of such allowance or disallowance shall be sent to the purchaser and to the commissioner. The purchaser shall retain the notice with its records. The secretary shall retain a copy of the notice with his records.

(d) Procedure where a renewable energy system other than a small power production facility is involved.

(1) Scope. This subsection prescribes the procedure for qualification for exemption from tax where a renewable energy system other than a small power production facility is involved. The purchaser must follow the refund procedure set out in subdivision (2) of this subsection. The refund procedure permits claims for refund of taxes paid on purchases. There is no up-front exempt procedure, which permits a tax-free purchase of a renewable energy system other than a small power production facility.

(2) Refund procedure. This subdivision describes the procedure to be followed where the purchaser pays the tax but wishes to claim a refund subsequently. Paragraph (A) sets out the information to be submitted to the commissioner. Paragraph (B) describes what the commissioner must do upon receipt of the information.

(A) The following information shall be submitted by the purchaser:

(i) the name and address of the purchaser and location of the renewable energy system.

(ii) a brief description of the system, including a statement indicating the primary energy source used or to be used by the renewable energy system.

(iii) the invoice and receipt pertaining to the purchase.

(iv) additional information deemed necessary by the commissioner. The information required to be submitted by this paragraph shall be sent to: Department of Revenue Services, 92 Farmington Avenue, Hartford, Connecticut 06105, Attn: Division Chief, Office Services Subdivision, Audit Division. The purchaser shall retain a copy of such information with its records.  Editor's Note:  The Department of Revenue Services' address is now: 25 Sigourney Street, Hartford, Connecticut 06106.


(B) Within ninety days of receipt of the information required by paragraph (A), the commissioner shall either allow or disallow, in whole or in part, the claim for refund. Notice of such allowance or disallowance shall be sent to the purchaser. The purchaser shall retain the notice with its records.

(Effective February 25, 1987.)