HB0091 • 2020
Economic diversification incentives for mineral exploration.

AN ACT relating to taxation and revenue; providing for a severance tax credit for certain mineral exploration as specified; providing procedures; providing for a report; providing for rules and regulations; providing applicability; and providing for an effective date.
Children Energy Land Taxes
Did Not Pass
The latest official action shows that this bill did not move forward in that session.
Sponsor: Representative Miller
Last action: 2020-03-09
Official status: inactive
Effective date: 3/1/2020
Plain English Breakdown

The bill did not pass and was never enacted, so there is no official text or summary available to confirm all details.
Economic Diversification Incentives for Mineral Exploration

This act proposes to provide tax credits for certain mineral exploration activities in Wyoming, with conditions and reporting requirements.
What This Bill Does

Creates a severance tax credit for mineral exploration activities that cost over $100,000.
Limits the tax credit to minerals not currently being produced in the county where the exploration occurs.
Requires companies seeking the tax credit to submit detailed information about their exploration activities and costs.
Sets rules for data collection and reporting by the Wyoming Geological Survey Office.
Who It Names or Affects

Companies conducting mineral exploration in Wyoming
The Wyoming Department of Environmental Quality and Oil and Gas Conservation Commission
Terms To Know

Severance Tax Credit: A tax credit given to companies for spending money on exploring minerals.
Locatable or Leasable Mineral Deposit: Minerals that can be claimed by individuals or leased from the government.
Limits and Unknowns

The bill did not pass and was never enacted.
Details about how counties can opt out of providing tax credits are unclear.
Specific rules for implementation have not been established.
Amendments

These notes stay tied to the official amendment files and metadata from the legislature.
HB0091HW001
Committee of the Whole • Representative Yin
Failed
Plain English: The amendment allows counties to decide whether they want to allow or exclude certain mineral exploration tax credits.
Adds language that lets counties choose if they will accept applications for a specific type of mineral exploration tax credit.
Requires counties to pass a resolution if they do not want the tax credit to apply within their borders.
The exact impact and process for counties to enact these resolutions are not detailed in this amendment text.
HB0091HS001
Standing Committee • House Travel, Recreation, Wildlife and Cultural Re
Adopted
Plain English: The amendment changes references to the 'department of environmental quality' and replaces them with the 'oil and gas conservation commission', while also making minor deletions in specific lines.
Replaces all instances of 'department of environmental quality' with 'oil and gas conservation commission'.
Deletes certain phrases like 'was collected' and 'sought...' from specified lines.
The exact impact of these changes on the bill's overall function is not fully explained in the amendment text.
Some deletions do not provide context for what should replace them, leaving their purpose unclear.
Bill History

2020-03-09 Senate
S COW:S Did not consider for COW
2020-03-05 Senate
S Placed on General File
2020-03-05 Senate
S09 - Minerals:Recommend Do Pass 3-2-0-0-0
2020-02-28 Senate
S Introduced and Referred to S09 - Minerals
2020-02-28 Senate
S Received for Introduction
2020-02-27 House
H 3rd Reading:Passed 49-9-2-0-0
2020-02-26 House
H 2nd Reading:Passed
2020-02-25 House
H COW:Passed
2020-02-18 House
H Placed on General File
2020-02-18 House
H06 - Travel:Recommend Amend and Do Pass 7-2-0-0-0
2020-02-12 House
H Introduced and Referred to H06 - Travel 58-1-1-0-0
2020-02-07 House
H Received for Introduction
2020-02-03 LSO
Bill Number Assigned
Current Bill Text

Read the full stored bill text
20LSO-0428
2020
STATE OF WYOMING
20LSO-0428
ENGROSSED
3.0

HOUSE BILL NO. HB0091

Economic diversification incentives for mineral exploration.

Sponsored by: Representative(s) Miller, Burkhart, Flitner, Hallinan, Harshman, Laursen, Lindholm and Salazar and Senator(s) Bebout, Coe and Dockstader

A BILL

for

AN ACT relating to taxation and revenue; providing for a severance tax credit for certain mineral exploration as specified; providing procedures; providing for a report; providing for rules and regulations; providing applicability; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1
.

W.S. 39
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14
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109(d) by creating a new paragraph (iv), 39
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14
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209(d) by creating a new paragraph (iv), 39
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14
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309(d) by creating a new paragraph (iv), 39
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14
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409(d) by creating a new paragraphs (iv), 39
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14
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509(d) by creating a new paragraph (iv), 39
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14
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609(d)
by creating a new paragraph (iv) and 39
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14
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709(d) by creating a new paragraph (iv) are amended to read:

39
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109.

Taxpayer remedies.

(d)

Credits. The following shall apply:

(iv)

The following shall apply to and constitute a mineral exploration tax credit:

(A)

Any person who has paid the tax levied pursuant to W.S. 39
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14
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103 and who is conducting or funding mineral exploration activities which are performed in this state for the purpose of determining the existence, location, quantity or quality of a locatable or leasable mineral deposit on private or public land may be eligible for a tax credit as provided by this paragraph.

The credit shall only be available for any mineral which is currently not being produced in the county in which the exploration activities occur, if the cost of the exploration activities exceed one hundred thousand dollars ($100,000.00), and all data related to the exploration activity is provided in accordance with this paragraph. Any credit granted pursuant
to this paragraph shall not exceed one hundred thousand dollars ($100,000.00).

The mineral exploration activities eligible for the credit shall include:

(I)

Surveying by geophysical or geochemical methods;

(II)

Drilling an exploration hole;

(III)

Surface trenching and bulk sampling; and

(IV)

Performing other exploratory work, including aerial photographs, geological and geophysical logging, sample analysis and metallurgical testing.

(B)

A mineral exploration tax credit shall not be allowed under this paragraph for exploration activity which occurs after a mining permit is issued by the Wyoming department of environmental quality for production of the mineral in the county where the exploratory activity occurred;

(C)

Any person wishing to obtain the credit authorized by this paragraph shall submit data and information to the department on an application form and in such manner as approved by the department.

The department shall confirm with the Wyoming department of environmental quality that a permit to produce the mineral has not yet been issued.
The application shall:

(I)

Include a list of expenditures for which the person is seeking credit in a manner approved by the department;

(II)

Describe all exploratory activity accomplished during the calendar year covered by the request, the number of employees involved and the names, specialties and number of consultants involved;

(III)

Provide a detailed list or ledger of the expenditures
and supporting receipts
required to complete the exploratory activities described in subdivision (II) of this subparagraph and a list of the types of exploration activity data that resulted from the
exploration activity. The receipts required by this subdivision shall be provided to the department for verification. If the department does not object to any of the receipts within seven (7) days, the expenditures shall be deemed to be correct;

(IV)

Provide proof that the expenditures for which credit is sought exceeds one hundred thousand dollars ($100,000.00) for each exploration project in the calendar year;

(V)

Agree to provide all data generated by the exploratory activities for which credit is sought, even if expenditures are more than one hundred thousand dollars ($100,000.00). All data shall be tied to the Wyoming state plane coordinate system.

Accuracy of the data shall reflect the type of data collected and shall be consistent with industry standards as required by the Wyoming geological survey office;

(VI)

Agree to provide any other information that the department or Wyoming geological
survey office by rule and regulation may reasonably require.

(D)

Not more than ninety (90) days following completion and collection of data that is generated from exploratory activities for which credit is sought, all factual and interpretive data as required by this paragraph shall be submitted to the Wyoming geological survey office. The following shall apply:

(I)

All data shall be examined by the appropriate specialist in the Wyoming geological survey office. Following examination the Wyoming geological survey office shall transmit a letter to the department indicating whether the data provided complies with the requirements of this paragraph. The department shall transmit a letter to the applicant with a copy to the Wyoming geological survey office either approving or denying the request for a tax credit. Any incomplete submission of data shall subject the application to denial;

(II)

Any submitted information shall become the property of the state;

(III)

Any submitted information shall remain confidential until December 31 of the year following the year of the submission;

(IV)

If a person applying for the tax credit fails to timely provide the data required by subparagraph (C) of this paragraph the Wyoming department of environmental quality may withhold approval of an exploration or mining permit sought by the person in the future until the data is properly filed.

(E)

If the application for the tax credit is granted, the person obtaining the credit may apply the credit against any tax due under W.S. 39
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14
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104(a)(ii) or (b)(ii) in the year following the calendar year in which the application is granted.

In no event shall the credit exceed the lesser of:

(I)

Fifty percent (50%) of the person's total tax liability under W.S. 39
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14
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104(a)(ii) or (b)(ii) for the calendar year following the year in which the application is granted; or

(II)

One hundred thousand dollars ($100,000.00) for any one (1) calendar year of production.

(F)

The department and the Wyoming geological survey office shall promulgate reasonable rules and regulations for the implementation of this paragraph;

(G)

The department and the Wyoming geological survey office shall report jointly on the results of the credit authorized by this paragraph annually on or before November 1 of each year to the governor and the legislature.

39
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14
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209.

Taxpayer remedies.

(d)

Credits. The following shall apply:

(iv)

The following shall apply to and constitute a mineral exploration tax credit:

(A)

Any person who has paid the tax levied pursuant to W.S. 39
‑
14
‑
203 and who is conducting or funding
mineral exploration activities which are performed in this state for the purpose of determining the existence, location, quantity or quality of a locatable or leasable mineral deposit on private or public land may be eligible for a tax credit as provided by this paragraph.

The credit shall only be available for any mineral which is currently not being produced in the county in which the exploration activities occur, if the cost of the exploration activities exceed one hundred thousand dollars ($100,000.00), and all data related to the exploration activity is provided in accordance with this paragraph. Any credit granted pursuant to this paragraph shall not exceed one hundred thousand dollars ($100,000.00).

The mineral exploration activities eligible for the credit shall include:

(I)

Surveying by geophysical or geochemical methods;

(II)

Drilling an exploration hole;

(III)

Surface trenching and bulk sampling; and

(IV)

Performing other exploratory work, including aerial photographs, geological and geophysical logging, sample analysis and metallurgical testing.

(B)

A mineral exploration tax credit shall not be allowed under this paragraph for exploration activity which occurs after any amounts of oil and gas which must be reported to the Wyoming oil and gas conservation commission have been produced in the county where the exploratory activity occurred;

(C)

Any person wishing to obtain the credit authorized by this paragraph shall submit data and information to the department on an application form and in such manner as approved by the department.
The department shall confirm with the Wyoming oil and gas conservation commission that a permit to produce the mineral has not yet been issued.
The application shall:

(I)

Include a list of expenditures for which the person is seeking credit in a manner approved by the department;

(II)

Describe all exploratory activity accomplished during the calendar year covered by the request, the number of employees involved and the names, specialties and number of consultants involved;

(III)

Provide a detailed list or ledger of the expenditures
and supporting receipts
required to complete the exploratory activities described in subdivision (II) of this subparagraph and a list of the types of exploration activity data that resulted from the exploration activity. The receipts required by this subdivision shall be provided to the department for verification. If the department does not object to any of the receipts within seven (7) days, the expenditures shall be deemed to be correct;

(IV)

Provide proof that the expenditures for which credit is sought exceeds one hundred thousand dollars ($100,000.00) for each exploration project in the calendar year;

(V)

Agree to provide all data generated by the exploratory activities for which credit is sought, even if expenditures are more than one hundred thousand dollars ($100,000.00). All data shall be tied to the Wyoming state plane coordinate system.

Accuracy of the data shall reflect the type of data collected and shall be consistent with industry standards as required by the Wyoming geological survey office;

(VI)

Agree to provide any other information that the department or Wyoming geological survey office by rule and regulation may reasonably require.

(D)

Not more than ninety (90) days following completion and collection of data that is generated from exploratory activities for which credit is sought, all factual and interpretive data as required by this paragraph shall be submitted to the Wyoming geological survey office. The following shall apply:

(I)

All data shall be examined by the appropriate specialist in the Wyoming geological survey
office. Following examination the Wyoming geological survey office shall transmit a letter to the department indicating whether the data provided complies with the requirements of this paragraph. The department shall transmit a letter to the applicant with a copy to the Wyoming geological survey office either approving or denying the request for a tax credit. Any incomplete submission of data shall subject the application to denial;

(II)

Any submitted information shall become the property of the state;

(III)

Any submitted information shall remain confidential until December 31 of the year following the year of the submission;

(IV)

If a person applying for the tax credit fails to timely provide the data required by subparagraph (C) of this paragraph the Wyoming oil and gas conservation commission may withhold approval of an exploration or mining permit sought by the person in the future until the data is properly filed.

(E)

If the application for the tax credit is granted, the person obtaining the credit may apply the credit against any tax due under W.S. 39
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14
‑
204(a)(ii) in the year following the calendar year in which the application is granted. In no event shall the credit exceed the lesser of:

(I)

Fifty percent (50%) of the person's total tax liability under W.S. 39
‑
14
‑
204(a)(ii) for the calendar year following the year in which the application is granted; or

(II)

One hundred thousand dollars ($100,000.00) for any one (1) calendar year of production.

(F)

The department and the Wyoming geological survey office shall promulgate reasonable rules and regulations for the implementation of this paragraph;

(G)

The department and the Wyoming geological survey office shall report jointly on the results of the credit authorized by this paragraph annually
on or before November 1 of each year to the governor and the legislature.

39
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14
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309.

Taxpayer remedies.

(d)

Credits. The following shall apply:

(iv)

The following shall apply to and constitute a mineral exploration tax credit:

(A)

Any person who has paid the tax levied pursuant to W.S. 39
‑
14
‑
303 and who is conducting or funding mineral exploration activities which are performed in this state for the purpose of determining the existence, location, quantity or quality of a locatable or leasable mineral deposit on private or public land may be eligible for a tax credit as provided by this paragraph. The credit shall only be available for any mineral which is currently not being produced in the county in which the exploration activities occur, if the cost of the exploration activities exceed one hundred thousand dollars ($100,000.00), and all data related to the exploration activity is provided in accordance with this paragraph. Any credit granted pursuant
to this paragraph shall not exceed one hundred thousand dollars ($100,000.00). The mineral exploration activities eligible for the credit shall include:

(I)

Surveying by geophysical or geochemical methods;

(II)

Drilling an exploration hole;

(III)

Surface trenching and bulk sampling; and

(IV)

Performing other exploratory work, including aerial photographs, geological and geophysical logging, sample analysis and metallurgical testing.

(B)

A mineral exploration tax credit shall not be allowed under this paragraph for exploration activity which occurs after a mining permit is issued by the Wyoming department of environmental quality for production of the mineral in the county where the exploratory activity occurred;

(C)

Any person wishing to obtain the credit authorized by this paragraph shall submit data and information to the department on an application form and in such manner as approved by the department.

The department shall confirm with the Wyoming department of environmental quality that a permit to produce the mineral has not yet been issued.
The application shall:

(I)

Include a list of expenditures for which the person is seeking credit in a manner approved by the department;

(II)

Describe all exploratory activity accomplished during the calendar year covered by the request, the number of employees involved and the names, specialties and number of consultants involved;

(III)

Provide a detailed list or ledger of the expenditures
and supporting receipts
required to complete the exploratory activities described in subdivision (II) of this subparagraph and a list of the types of exploration activity data that resulted from the
exploration activity. The receipts required by this subdivision shall be provided to the department for verification. If the department does not object to any of the receipts within seven (7) days, the expenditures shall be deemed to be correct;

(IV)

Provide proof that the expenditures for which credit is sought exceeds one hundred thousand dollars ($100,000.00) for each exploration project in the calendar year;

(V)

Agree to provide all data generated by the exploratory activities for which credit is sought, even if expenditures are more than one hundred thousand dollars ($100,000.00). All data shall be tied to the Wyoming state plane coordinate system.

Accuracy of the data shall reflect the type of data collected and shall be consistent with industry standards as required by the Wyoming geological survey office;

(VI)

Agree to provide any other information that the department or Wyoming geological
survey office by rule and regulation may reasonably require.

(D)

Not more than ninety (90) days following completion and collection of data that is generated from exploratory activities for which credit is sought, all factual and interpretive data as required by this paragraph shall be submitted to the Wyoming geological survey office. The following shall apply:

(I)

All data shall be examined by the appropriate specialist in the Wyoming geological survey office. Following examination the Wyoming geological survey office shall transmit a letter to the department indicating whether the data provided complies with the requirements of this paragraph. The department shall transmit a letter to the applicant with a copy to the Wyoming geological survey office either approving or denying the request for a tax credit. Any incomplete submission of data shall subject the application to denial;

(II)

Any submitted information shall become the property of the state;

(III)

Any submitted information shall remain confidential until December 31 of the year following the year of the submission;

(IV)

If a person applying for the tax credit fails to timely provide the data required by subparagraph (C) of this paragraph the Wyoming department of environmental quality may withhold approval of an exploration or mining permit sought by the person in the future until the data is properly filed.

(E)

If the application for the tax credit is granted, the person obtaining the credit may apply the credit against any tax due under W.S. 39
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14
‑
304(a)(ii) in the year following the calendar year in which the application is granted. In no event shall the credit exceed the lesser of:

(I)

Fifty percent (50%) of the person's total tax liability under W.S. 39
‑
14
‑
304(a)(ii) for the calendar year following the year in which the application is granted; or

(II)

One hundred thousand dollars ($100,000.00) for any one (1) calendar year of production.

(F)

The department and the Wyoming geological survey office shall promulgate reasonable rules and regulations for the implementation of this paragraph;

(G)

The department and the Wyoming geological survey office shall report jointly on the results of the credit authorized by this paragraph annually on or before November 1 of each year to the governor and the legislature.

39
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14
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409.

Taxpayer remedies.

(d)

Credits. The following shall apply:

(iv)

The following shall apply to and constitute a mineral exploration tax credit:

(A)

Any person who has paid the tax levied pursuant to W.S. 39
‑
14
‑
403 and who is conducting or funding
mineral exploration activities which are performed in this state for the purpose of determining the existence, location, quantity or quality of a locatable or leasable mineral deposit on private or public land may be eligible for a tax credit as provided by this paragraph. The credit shall only be available for any mineral which is currently not being produced in the county in which the exploration activities occur, if the cost of the exploration activities exceed one hundred thousand dollars ($100,000.00), and all data related to the exploration activity is provided in accordance with this paragraph. Any credit granted pursuant to this paragraph shall not exceed one hundred thousand dollars ($100,000.00). The mineral exploration activities eligible for the credit shall include:

(I)

Surveying by geophysical or geochemical methods;

(II)

Drilling an exploration hole;

(III)

Surface trenching and bulk sampling; and

(IV)

Performing other exploratory work, including aerial photographs, geological and geophysical logging, sample analysis and metallurgical testing.

(B)

A mineral exploration tax credit shall not be allowed under this paragraph for exploration activity which occurs after a mining permit is issued by the Wyoming department of environmental quality for production of the mineral in the county where the exploratory activity occurred;

(C)

Any person wishing to obtain the credit authorized by this paragraph shall submit data and information to the department on an application form and in such manner as approved by the department.

The department shall confirm with the Wyoming department of environmental quality that a permit to produce the mineral has not yet been issued.
The application shall:

(I)

Include a list of expenditures for which the person is seeking credit in a manner approved by the department;

(II)

Describe all exploratory activity accomplished during the calendar year covered by the request, the number of employees involved and the names, specialties and number of consultants involved;

(III)

Provide a detailed list or ledger of the expenditures
and supporting receipts
required to complete the exploratory activities described in subdivision (II) of this subparagraph and a list of the types of exploration activity data that resulted from the exploration activity. The receipts required by this subdivision shall be provided to the department for verification. If the department does not object to any of the receipts within seven (7) days, the expenditures shall be deemed to be correct;

(IV)

Provide proof that the expenditures for which credit is sought exceeds one hundred thousand dollars ($100,000.00) for each exploration project in the calendar year;

(V)

Agree to provide all data generated by the exploratory activities for which credit is sought, even if expenditures are more than one hundred thousand dollars ($100,000.00). All data shall be tied to the Wyoming state plane coordinate system.

Accuracy of the data shall reflect the type of data collected and shall be consistent with industry standards as required by the Wyoming geological survey office;

(VI)

Agree to provide any other information that the department or Wyoming geological survey office by rule and regulation may reasonably require.

(D)

Not more than ninety (90) days following completion and collection of data that is generated from exploratory activities for which credit is sought, all factual and interpretive data as required by this paragraph shall be submitted to the Wyoming geological survey office.

The following shall apply:

(I)

All data shall be examined by the appropriate specialist in the Wyoming geological survey
office. Following examination the Wyoming geological survey office shall transmit a letter to the department indicating whether the data provided complies with the requirements of this paragraph. The department shall transmit a letter to the applicant with a copy to the Wyoming geological survey office either approving or denying the request for a tax credit. Any incomplete submission of data shall subject the application to denial;

(II)

Any submitted information shall become the property of the state;

(III)

Any submitted information shall remain confidential until December 31 of the year following the year of the submission;

(IV)

If a person applying for the tax credit fails to timely provide the data required by subparagraph (C) of this paragraph the Wyoming department of environmental quality may withhold approval of an exploration or mining permit sought by the person in the future until the data is properly filed.

(E)

If the application for the tax credit is granted, the person obtaining the credit may apply the credit against any tax due under W.S. 39
‑
14
‑
404 in the year following the calendar year in which the application is granted. In no event shall the credit exceed the lesser of:

(I)

Fifty percent (50%) of the person's total tax liability under W.S. 39
‑
14
‑
404 for the calendar year following the year in which the application is granted; or

(II)

One hundred thousand dollars ($100,000.00) for any one (1) calendar year of production.

(F)

The department and the Wyoming geological survey office shall promulgate reasonable rules and regulations for the implementation of this paragraph;

(G)

The department and the Wyoming geological survey office shall report jointly on the results of the credit authorized by this paragraph annually on or before November 1 of each year to the governor and the legislature.

39
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14
‑
509.

Taxpayer remedies.

(d)

Credits. The following shall apply:

(iv)

The following shall apply to and constitute a mineral exploration tax credit:

(A)

Any person who has paid the tax levied pursuant to W.S. 39
‑
14
‑
503 and who is conducting or funding mineral exploration activities which are performed in this state for the purpose of determining the existence, location, quantity or quality of a locatable or leasable mineral deposit on private or public land may be eligible for a tax credit as provided by this paragraph.

The credit shall only be available for any mineral which is currently not being produced in the county in which the exploration activities occur, if the cost of the exploration activities exceed one hundred thousand dollars ($100,000.00), and all data related to the exploration activity is provided in accordance with this paragraph. Any credit granted pursuant to this paragraph shall not exceed one hundred thousand
dollars ($100,000.00). The mineral exploration activities eligible for the credit shall include:

(I)

Surveying by geophysical or geochemical methods;

(II)

Drilling an exploration hole;

(III)

Surface trenching and bulk sampling; and

(IV)

Performing other exploratory work, including aerial photographs, geological and geophysical logging, sample analysis and metallurgical testing.

(B)

A mineral exploration tax credit shall not be allowed under this paragraph for exploration activity which occurs after a mining permit is issued by the Wyoming department of environmental quality for production of the mineral in the county where the exploratory activity occurred;

(C)

Any person wishing to obtain the credit authorized by this paragraph shall submit data and information to the department on an application form and in such manner as approved by the department.

The department shall confirm with the Wyoming department of environmental quality that a permit to produce the mineral has not yet been issued.
The application shall:

(I)

Include a list of expenditures for which the person is seeking credit in a manner approved by the department;

(II)

Describe all exploratory activity accomplished during the calendar year covered by the request, the number of employees involved and the names, specialties and number of consultants involved;

(III)

Provide a detailed list or ledger of the expenditures
and supporting receipts
required to complete the exploratory activities described in subdivision (II) of this subparagraph and a list of the types of exploration activity data that resulted from the exploration activity. The receipts required by this
subdivision shall be provided to the department for verification. If the department does not object to any of the receipts within seven (7) days, the expenditures shall be deemed to be correct;

(IV)

Provide proof that the expenditures for which credit is sought exceeds one hundred thousand dollars ($100,000.00) for each exploration project in the calendar year;

(V)

Agree to provide all data generated by the exploratory activities for which credit is sought, even if expenditures are more than one hundred thousand dollars ($100,000.00). All data shall be tied to the Wyoming state plane coordinate system. Accuracy of the data shall reflect the type of data collected and shall be consistent with industry standards as required by the Wyoming geological survey office;

(VI)

Agree to provide any other information that the department or Wyoming geological survey office by rule and regulation may reasonably require.

(D)

Not more than ninety (90) days following completion and collection of data that is generated from exploratory activities for which credit is sought, all factual and interpretive data as required by this paragraph shall be submitted to the Wyoming geological survey office. The following shall apply:

(I)

All data shall be examined by the appropriate specialist in the Wyoming geological survey office. Following examination the Wyoming geological survey office shall transmit a letter to the department indicating whether the data provided complies with the requirements of this paragraph. The department shall transmit a letter to the applicant with a copy to the Wyoming geological survey office either approving or denying the request for a tax credit. Any incomplete submission of data shall subject the application to denial;

(II)

Any submitted information shall become the property of the state;

(III)

Any submitted information shall remain confidential until December 31 of the year following the year of the submission;

(IV)

If a person applying for the tax credit fails to timely provide the data required by subparagraph (C) of this paragraph the Wyoming department of environmental quality may withhold approval of an exploration or mining permit sought by the person in the future until the data is properly filed.

(E)

If the application for the tax credit is granted, the person obtaining the credit may apply the credit against any tax due under W.S. 39
‑
14
‑
504(a)(ii) in the year following the calendar year in which the application is granted. In no event shall the credit exceed the lesser of:

(I)

Fifty percent (50%) of the person's total tax liability under W.S. 39
‑
14
‑
504(a)(ii) for the calendar year following the year in which the application is granted; or

(II)

One hundred thousand dollars ($100,000.00) for any one (1) calendar year of production.

(F)

The department and the Wyoming geological survey office shall promulgate reasonable rules and regulations for the implementation of this paragraph;

(G)

The department and the Wyoming geological survey office shall report jointly on the results of the credit authorized by this paragraph annually on or before November 1 of each year to the governor and the legislature.

39
‑
14
‑
609.

Taxpayer remedies.

(d)

Credits. The following shall apply:

(iv)

The following shall apply to and constitute a mineral exploration tax credit:

(A)

Any person who has paid the tax levied pursuant to W.S. 39
‑
14
‑
603 and who is conducting or funding mineral exploration activities which are performed in this
state for the purpose of determining the existence, location, quantity or quality of a locatable or leasable mineral deposit on private or public land may be eligible for a tax credit as provided by this paragraph.

The credit shall only be available for any mineral which is currently not being produced in the county in which the exploration activities occur, if the cost of the exploration activities exceed one hundred thousand dollars ($100,000.00), and all data related to the exploration activity is provided in accordance with this paragraph. Any credit granted pursuant to this paragraph shall not exceed one hundred thousand dollars ($100,000.00).

The mineral exploration activities eligible for the credit shall include:

(I)

Surveying by geophysical or geochemical methods;

(II)

Drilling an exploration hole;

(III)

Surface trenching and bulk sampling; and

(IV)

Performing other exploratory work, including aerial photographs, geological and geophysical logging, sample analysis and metallurgical testing.

(B)

A mineral exploration tax credit shall not be allowed under this paragraph for exploration activity which occurs after a mining permit is issued by the Wyoming department of environmental quality for production of the mineral in the county where the exploratory activity occurred;

(C)

Any person wishing to obtain the credit authorized by this paragraph shall submit data and information to the department on an application form and in such manner as approved by the department.

The department shall confirm with the Wyoming department of environmental quality that a permit to produce the mineral has not yet been issued.
The application shall:

(I)

Include a list of expenditures for which the person is seeking credit in a manner approved by the department;

(II)

Describe all exploratory activity accomplished during the calendar year covered by the request, the number of employees involved and the names, specialties and number of consultants involved;

(III)

Provide a detailed list or ledger of the expenditures
and supporting receipts
required to complete the exploratory activities described in subdivision (II) of this subparagraph and a list of the types of exploration activity data that resulted from the exploration activity. The receipts required by this subdivision shall be provided to the department for verification. If the department does not object to any of the receipts within seven (7) days, the expenditures shall be deemed to be correct;

(IV)

Provide proof that the expenditures for which credit is sought exceeds one hundred thousand dollars ($100,000.00) for each exploration project in the calendar year;

(V)

Agree to provide all data generated by the exploratory activities for which credit is sought, even if expenditures are more than one hundred thousand dollars ($100,000.00). All data shall be tied to the Wyoming state plane coordinate system.

Accuracy of the data shall reflect the type of data collected and shall be consistent with industry standards as required by the Wyoming geological survey office;

(VI)

Agree to provide any other information that the department or Wyoming geological survey office by rule and regulation may reasonably require.

(D)

Not more than ninety (90) days following completion and collection of data that is generated from exploratory activities for which credit is sought, all factual and interpretive data as required by this paragraph shall be submitted to the Wyoming geological survey office. The following shall apply:

(I)

All data shall be examined by the appropriate specialist in the Wyoming geological survey
office. Following examination the Wyoming geological survey office shall transmit a letter to the department indicating whether the data provided complies with the requirements of this paragraph. The department shall transmit a letter to the applicant with a copy to the Wyoming geological survey office either approving or denying the request for a tax credit. Any incomplete submission of data shall subject the application to denial;

(II)

Any submitted information shall become the property of the state;

(III)

Any submitted information shall remain confidential until December 31 of the year following the year of the submission;

(IV)

If a person applying for the tax credit fails to timely provide the data required by subparagraph (C) of this paragraph the Wyoming department of environmental quality may withhold approval of an exploration or mining permit sought by the person in the future until the data is properly filed.

(E)

If the application for the tax credit is granted, the person obtaining the credit may apply the credit against any tax due under W.S. 39
‑
14
‑
604 in the year following the calendar year in which the application is granted. In no event shall the credit exceed the lesser of:

(I)

Fifty percent (50%) of the person's total tax liability under W.S. 39
‑
14
‑
604 for the calendar year following the year in which the application is granted; or

(II)

One hundred thousand dollars ($100,000.00) for any one (1) calendar year of production.

(F)

The department and the Wyoming geological survey office shall promulgate reasonable rules and regulations for the implementation of this paragraph;

(G)

The department and the Wyoming geological survey office shall report jointly on the results of the credit authorized by this paragraph annually on or before November 1 of each year to the governor and the legislature.

39
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709.

Taxpayer remedies.

(d)

Credits. The following shall apply:

(iv)

The following shall apply to and constitute a mineral exploration tax credit:

(A)

Any person who has paid the tax levied pursuant to W.S. 39
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14
‑
703 and who is conducting or funding mineral exploration activities which are performed in this state for the purpose of determining the existence, location, quantity or quality of a locatable or leasable mineral deposit on private or public land may be eligible for a tax credit as provided by this paragraph.

The credit shall only be available for any mineral which is currently not being produced in the county in which the exploration activities occur, if the cost of the exploration activities exceed one hundred thousand dollars ($100,000.00), and all data related to the exploration activity is provided in accordance with this paragraph. Any credit granted pursuant to this paragraph shall not exceed one hundred thousand
dollars ($100,000.00).

The mineral exploration activities eligible for the credit shall include:

(I)

Surveying by geophysical or geochemical methods;

(II)

Drilling an exploration hole;

(III)

Surface trenching and bulk sampling; and

(IV)

Performing other exploratory work, including aerial photographs, geological and geophysical logging, sample analysis and metallurgical testing.

(B)

A mineral exploration tax credit shall not be allowed under this paragraph for exploration activity which occurs after a mining permit is issued by the Wyoming department of environmental quality for production of the mineral in the county where the exploratory activity occurred;

(C)

Any person wishing to obtain the credit authorized by this paragraph shall submit data and information to the department on an application form and in such manner as approved by the department.

The department shall confirm with the Wyoming department of environmental quality that a permit to produce the mineral has not yet been issued.
The application shall:

(I)

Include a list of expenditures for which the person is seeking credit in a manner approved by the department;

(II)

Describe all exploratory activity accomplished during the calendar year covered by the request, the number of employees involved and the names, specialties and number of consultants involved;

(III)

Provide a detailed list or ledger of the expenditures
and supporting receipts
required to complete the exploratory activities described in subdivision (II) of this subparagraph and a list of the types of exploration activity data that resulted from the exploration activity. The receipts required by this
subdivision shall be provided to the department for verification. If the department does not object to any of the receipts within seven (7) days, the expenditures shall be deemed to be correct;

(IV)

Provide proof that the expenditures for which credit is sought exceeds one hundred thousand dollars ($100,000.00) for each exploration project in the calendar year;

(V)

Agree to provide all data generated by the exploratory activities for which credit is sought, even if expenditures are more than one hundred thousand dollars ($100,000.00). All data shall be tied to the Wyoming state plane coordinate system.

Accuracy of the data shall reflect the type of data collected and shall be consistent with industry standards as required by the Wyoming geological survey office;

(VI)

Agree to provide any other information that the department or Wyoming geological survey office by rule and regulation may reasonably require.

(D)

Not more than ninety (90) days following completion and collection of data that is generated from exploratory activities for which credit is sought, all factual and interpretive data as required by this paragraph shall be submitted to the Wyoming geological survey office. The following shall apply:

(I)

All data shall be examined by the appropriate specialist in the Wyoming geological survey office. Following examination the Wyoming geological survey office shall transmit a letter to the department indicating whether the data provided complies with the requirements of this paragraph. The department shall transmit a letter to the applicant with a copy to the Wyoming geological survey office either approving or denying the request for a tax credit. Any incomplete submission of data shall subject the application to denial;

(II)

Any submitted information shall become the property of the state;

(III)

Any submitted information shall remain confidential until December 31 of the year following the year of the submission;

(IV)

If a person applying for the tax credit fails to timely provide the data required by subparagraph (C) of this paragraph the Wyoming department of environmental quality may withhold approval of an exploration or mining permit sought by the person in the future until the data is properly filed.

(E)

If the application for the tax credit is granted, the person obtaining the credit may apply the credit against any tax due under W.S. 39
‑
14
‑
704 in the year following the calendar year in which the application is granted. In no event shall the credit exceed the lesser of:

(I)

Fifty percent (50%) of the person's total tax liability under W.S. 39
‑
14
‑
704 for the calendar year following the year in which the application is granted; or

(II)

One hundred thousand dollars ($100,000.00) for any one (1) calendar year of production.

(F)

The department and the Wyoming geological survey office shall promulgate reasonable rules and regulations for the implementation of this paragraph;

(G)

The department and the Wyoming geological survey office shall report jointly on the results of the credit authorized by this paragraph annually on or before November 1 of each year to the governor and the legislature.

Section 2.

This act shall apply prospectively to
mineral exploration activities commencing after July 1, 2020.

Section 3.

This act is effective July 1, 2020
.

(END)

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HB0091