Chapter 03. Coal Pollution Facilities

In this chapter, the following terms have the meanings indicated.

Terms Defined.

Except as otherwise provided in this regulation, a partial exemption equal to 95 percent of the assessment of the property applies to property placed in service as part of a certified coal pollution control facility or a coal waste disposal power project and for which all necessary permits, including a certificate of public convenience and necessity, are issued after January 1, 1997.

If a certified coal pollution control facility produces a profitable by-product or if a part of the facility is required for the operation of the business without regard to State and federal air quality, water quality, and effluent requirements, the partial exemption under this regulation applies only to that portion of the value of the facility attributable to pollution control activity.

If a certified coal pollution facility engages in the replacement, repair, or retrofit of equipment that was subject to the property tax on or before December 31, 1996, the partial exemption under this regulation is reduced by the replacement value of existing equipment that is replaced, repaired, or retrofitted.

Any exemption applied to property under Regulation .02B of this chapter is based on its depreciated value.

Any exemption applied to property under Regulation .02C of this chapter is based on the cost of replacement, repair, or retrofit of the equipment minus the depreciated value of the equipment replaced, repaired, or retrofitted.

Partial exemptions described in this chapter are calculated using standard depreciation as determined by the Department. Certified pollution control property is depreciated and subtracted from the depreciated cost of electric generation machinery and equipment. The taxable portion of the partial exemption (95 percent exempt; 5 percent taxable) is depreciated and added to the assessment.