UT Code § 59-7-610 (2021)
2021 Utah Code|Title 59 - Revenue and Taxation|Chapter 7 - Corporate Franchise and Income Taxes|Part 6 - Credits|Section 610 - Recycling market development zones tax credits.

 Effective 5/5/2021  59-7-610. Recycling market development zones tax credits.    (1) Subject to other provisions of this section, a taxpayer that is a business operating in a recycling market development zone as defined in Section 19-13-102 may claim the following nonrefundable tax credits:   (a) a tax credit equal to the product of the percentage listed in Subsection 59-7-104(2) and the purchase price paid for machinery and equipment used directly in:   (i) commercial composting; or     (ii) manufacturing facilities or plant units that:   (A) manufacture, process, compound, or produce recycled items of tangible personal property for sale; or     (B) reduce or reuse postconsumer waste material; and         (b) a tax credit equal to the lesser of:   (i) 20% of net expenditures to third parties for rent, wages, supplies, tools, test inventory, and utilities made by the taxpayer for establishing and operating recycling or composting technology in the state; and     (ii) $2,000.         (2)   (a) To claim a tax credit described in Subsection (1), the taxpayer shall receive from the Department of Environmental Quality a written certification, on a form approved by the commission, that includes:   (i) a statement that the taxpayer is operating a business within the boundaries of a recycling market development zone;     (ii) for a claim of the tax credit described in Subsection (1)(a):   (A) the type of the machinery and equipment that the taxpayer purchased;     (B) the date that the taxpayer purchased the machinery and equipment;     (C) the purchase price for the machinery and equipment;     (D) the total purchase price for all machinery and equipment for which the taxpayer is claiming a tax credit;     (E) a statement that the machinery and equipment are integral to the composting or recycling process; and     (F) the amount of the taxpayer's tax credit; and       (iii) for a claim of the tax credit described in Subsection (1)(b):   (A) the type of net expenditure that the taxpayer made to a third party;     (B) the date that the taxpayer made the payment to a third party;     (C) the amount that the taxpayer paid to each third party;     (D) the total amount that the taxpayer paid to all third parties;     (E) a statement that the net expenditures support the establishment and operation of recycling or composting technology in the state; and     (F) the amount of the taxpayer's tax credit.         (b)   (i) The Department of Environmental Quality shall provide a taxpayer seeking to claim a tax credit under Subsection (1) with a copy of the written certification.     (ii) The taxpayer shall retain a copy of the written certification for the same period of time that a person is required to keep books and records under Section 59-1-1406.       (c) The Department of Environmental Quality shall submit to the commission an electronic list that includes:   (i) the name and identifying information of each taxpayer to which the Department of Environmental Quality issues a written certification; and     (ii) for each taxpayer, the amount of each tax credit listed on the written certification.         (3) A taxpayer may not claim a tax credit under Subsection (1)(a), Subsection (1)(b), or both that exceeds 40% of the taxpayer's state income tax liability as the tax liability is calculated:   (a) for the taxable year in which the taxpayer made the purchases or payments;     (b) before any other tax credits the taxpayer may claim for the taxable year; and     (c) before the taxpayer claims a tax credit authorized by this section.       (4) The commission shall make rules governing what information a taxpayer shall file with the commission to verify the entitlement to and amount of a tax credit.     (5) Except as provided in Subsections (6) through (8), a taxpayer may carry forward, to the next three taxable years, the amount of a tax credit described in Subsection (1)(a) that the taxpayer does not use for the taxable year.     (6) A taxpayer may not claim or carry forward a tax credit described in Subsection (1)(a) in a taxable year during which the taxpayer claims or carries forward a tax credit under Section 63N-2-213.     (7) A taxpayer may not claim a tax credit described in Subsection (1)(b) in a taxable year during which the taxpayer claims or carries forward a tax credit under Section 63N-2-213.     (8) A taxpayer may not claim or carry forward a tax credit under this section for a taxable year during which the taxpayer claims the targeted business income tax credit under Section 59-7-624.    Amended by Chapter 367, 2021 General Session