2023 Utah Code › Title 59 - Revenue and Taxation › Chapter 10 - Individual Income Tax Act › Part 10 - Nonrefundable Tax Credit Act › Section 1007 - Recycling market development zones tax credits.

Affected by 63I-2-259 on 12/31/2024
Effective 5/5/2021
59-10-1007.
Recycling market development zones tax credits.
(1) Subject to other provisions of this section, a claimant, estate, or trust 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 59-10-104(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 claimant, estate, or trust 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 claimant, estate, or trust 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 claimant, estate, or trust is operating 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 claimant, estate, or trust purchased;
(B) the date that the claimant, estate, or trust 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 claimant, estate, or trust is claiming a tax credit;
(E) the amount of the claimant's, estate's, or trust's tax credit; and
(F) a statement that the machinery and equipment are integral to the composting or recycling process; and
(iii) for a claim of the tax credit described in Subsection (1)(b):
(A) the type of net expenditure that the claimant, estate, or trust made to a third party;
(B) the date that the claimant, estate, or trust made the payment to a third party;
(C) the amount that the claimant, estate, or trust paid to each third party;
(D) the total amount that the claimant, estate, or trust 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 claimant's, estate's, or trust's tax credit.
(b)
(i) The Department of Environmental Quality shall provide a claimant, estate, or trust seeking to claim a tax credit under Subsection (1) with a copy of the written certification.
(ii) The claimant, estate, or trust 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 claimant, estate, or trust to which the Department of Environmental Quality issues a written certification; and
(ii) for each claimant, estate, or trust, the amount of each tax credit listed on the written certification.
(3) A claimant, estate, or trust may not claim a tax credit under Subsection (1)(a), Subsection (1)(b), or both that exceeds 40% of the claimant's, estate's, or trust's state income tax liability as the tax liability is calculated:
(a) for the taxable year in which the claimant, estate, or trust made the purchases or payments;
(b) before any other tax credits the claimant, estate, or trust may claim for the taxable year; and
(c) before the claimant, estate, or trust claims a tax credit authorized by this section.
(4) The commission shall make rules governing what information a claimant, estate, or trust 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 claimant, estate, or trust may carry forward, to the next three taxable years, the amount of a tax credit described in Subsection (1)(a) that the claimant, estate, or trust does not use for the taxable year.
(6) A claimant, estate, or trust may not claim or carry forward a tax credit described in Subsection (1)(a) in a taxable year during which the claimant, estate, or trust claims or carries forward a tax credit under Section 63N-2-213.
(7) A claimant, estate, or trust may not claim a tax credit described in Subsection (1)(b) in a taxable year during which the claimant, estate, or trust claims or carries forward a tax credit under Section 63N-2-213.
(8) A claimant, estate, or trust may not claim or carry forward a tax credit under this section for a taxable year during which the claimant, estate, or trust claims the targeted business income tax credit under Section 59-10-1112.
Amended by Chapter 367, 2021 General Session