CHAPTER 17

FORMERLY

SENATE BILL. NO. 183

AS AMENDED BY SENATE AMENDMENT NO. 4

AN ACT TO AMEND CHAPTER I. TITLE 26 OF THE DELAWARE CODE, AND TO AMEND CHAPTER 55, TITLE 30 OF THE DELAWARE CODE, RELATING TO CORPORATIONS IN REORGANIZATION UNDER CHAPTER II OF THE UNITED STATES BANKRUPTCY CODE AND THEIR ELIGIBILITY FOR EXEMPTION FROM THE PUBLIC UTILITY TAX AND FOR ECONOMIC DEVELOPMENT GRANTS PROVIDED BY PUBLIC UTILITIES.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section I. Amend Section 303, Title 26 of the Delaware Code by adding to Section 303 a new subsection "(c)" to read as follows:

"(c) Notwithstanding any other provision of this Chapter. any corporation that Is excmpt from taxation under Section 5506 (1) of Chapter 55, Title 30 of the Delaware Code may petition the Public Service Commission for an economic development credit of up to five percent of its electric and/or gas utility bills to be in effect for the same period specified in that Section. The Public Service Commission may grant such petition if it deems such action to be in the public interest. If such petition is granted. then the Public Service Commission shall permit the affected utility to collect the amount of the economic development expense in a manner deemed appropriate by the Commission."

Section 2. Amend Section 5506 of the Delaware Code by adding to Section 5506 a new subsection "(f)" to read as follows:

"(f) The tax imposed by Section 5502(b) of this Chapter shall not apply for thirty six consecutive months to gas or electricity furnished to a corporation which, at any time after December 31, 1984, was a debtor in possession in a reorganization proceeding under Chapter II of the United States Bankruptcy Code and which In good faith files a plan of reorganization with the United States Bankruptcy Court. The thirty six month exemption period shall commence on the first day of the calendar month following the filing of the debtor corporation's plan of reorganization. During the thirty six month exemption period no distributor of gas or electricity shall be assessed any tax Imposed by this Chapter upon the distribution of such gas or electricity to a corporation which qualifies for such exemption under this subsection, nor shall any distributor of gas or electricity pass on any tax imposed by this Chapter to any such corporation. The Division of Revenue shall promulgate appropriate rules and regulations to Implement this subsection."

Approved June 15, 1985.