59-7-610 - Recycling market development zones tax credit. - Utah Statutes

59-7-610. Recycling market development zones tax credit.
(1) For taxable years beginning on or after January 1, 1996, a business operating in arecycling market development zone as defined in Section 63M-1-1102 may claim a tax credit asprovided in this section.
(a) (i) There shall be allowed a nonrefundable tax credit of 5% of the purchase price paidfor machinery and equipment used directly in:
(A) commercial composting; or
(B) manufacturing facilities or plant units that:
(I) manufacture, process, compound, or produce recycled items of tangible personalproperty for sale; or
(II) reduce or reuse postconsumer waste material.
(ii) The Governor's Office of Economic Development shall certify that the machinery andequipment described in Subsection (1)(a)(i) are integral to the composting or recycling process:
(A) on a form provided by the commission; and
(B) before a taxpayer is allowed a tax credit under this section.
(iii) The Governor's Office of Economic Development shall provide a taxpayer seekingto claim a tax credit under this section with a copy of the form described in Subsection (1)(a)(ii).
(iv) The taxpayer described in Subsection (1)(a)(iii) shall retain a copy of the formreceived under Subsection (1)(a)(iii).
(b) There shall be allowed a nonrefundable tax credit equal to 20% of net expendituresup to $10,000 to third parties for rent, wages, supplies, tools, test inventory, and utilities made bythe taxpayer for establishing and operating recycling or composting technology in Utah, with anannual maximum tax credit of $2,000.
(2) The total nonrefundable tax credit allowed under this section may not exceed 40% ofthe Utah income tax liability of the taxpayer prior to any tax credits in the taxable year ofpurchase prior to claiming the tax credit authorized by this section.
(3) (a) Any tax credit not used for the taxable year in which the purchase price oncomposting or recycling machinery and equipment was paid may be carried over for creditagainst the business' income taxes in the three succeeding taxable years until the total tax creditamount is used.
(b) Tax credits not claimed by a business on the business' state income tax return withinthree years are forfeited.
(4) The commission shall make rules governing what information shall be filed with thecommission to verify the entitlement to and amount of a tax credit.
(5) (a) Notwithstanding Subsection (1)(a), for taxable years beginning on or after January1, 2001, a taxpayer may not claim or carry forward a tax credit described in Subsection (1)(a) in ataxable year during which the taxpayer claims or carries forward a tax credit under Section63M-1-413.
(b) For a taxable year other than a taxable year during which the taxpayer may not claimor carry forward a tax credit in accordance with Subsection (5)(a), a taxpayer may claim or carryforward a tax credit described in Subsection (1)(a):
(i) if the taxpayer may claim or carry forward the tax credit in accordance withSubsections (1) and (2); and
(ii) subject to Subsections (3) and (4).
(6) Notwithstanding Subsection (1)(b), for taxable years beginning on or after January 1,

2001, a taxpayer may not claim a tax credit described in Subsection (1)(b) in a taxable yearduring which the taxpayer claims or carries forward a tax credit under Section 63M-1-413.
(7) A taxpayer may not claim or carry forward a tax credit available under this section fora taxable year during which the taxpayer has claimed the targeted business income tax creditavailable under Section 63M-1-504.

Amended by Chapter 382, 2008 General Session