59-10-1007 - Recycling market development zones tax credit. - Utah Statutes

59-10-1007. Recycling market development zones tax credit.
(1) For taxable years beginning on or after January 1, 1996, a claimant, estate, or trust ina recycling market development zone as defined in Section 63M-1-1102 may claim anonrefundable tax credit as provided in this section.
(a) (i) There shall be allowed a tax credit of 5% of the purchase price paid for machineryand 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 claimant, estate, or trust is allowed a tax credit under this section.
(iii) The Governor's Office of Economic Development shall provide a claimant, estate, ortrust seeking to claim a tax credit under this section with a copy of the form described inSubsection (1)(a)(ii).
(iv) The claimant, estate, or trust described in Subsection (1)(a)(iii) shall retain a copy ofthe form received under Subsection (1)(a)(iii).
(b) There shall be allowed a tax credit equal to 20% of net expenditures up to $10,000 tothird 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 Utah, withan annual maximum tax credit of $2,000.
(2) The total tax credit allowed under this section may not exceed 40% of the Utahincome tax liability of the claimant, estate, or trust 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 forward against theclaimant's, estate's, or trusts's tax liability under this chapter in the three succeeding taxable yearsuntil the total tax credit amount is used.
(b) Tax credits not claimed by a claimant, estate, or trust on the claimant's, estate's, ortrust's tax return under this chapter within three 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 claimant, estate, or trust may not claim or carry forward a tax credit described inSubsection (1)(a) in a taxable year during which the claimant, estate, or trust claims or carriesforward a tax credit under Section 63M-1-413.
(b) For a taxable year other than a taxable year during which the claimant, estate, or trustmay not claim or carry forward a tax credit in accordance with Subsection (5)(a), a claimant,estate, or trust may claim or carry forward a tax credit described in Subsection (1)(a):
(i) if the claimant, estate, or trust may claim or carry forward the tax credit in accordancewith Subsections (1) and (2); and
(ii) subject to Subsections (3) and (4).

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(6) Notwithstanding Subsection (1)(b), for taxable years beginning on or after January 1,2001, a claimant, estate, or trust may not claim a tax credit described in Subsection (1)(b) in ataxable year during which the claimant, estate, or trust claims or carries forward a tax creditunder Section 63M-1-413.
(7) A claimant, estate, or trust may not claim or carry forward a tax credit available underthis section for a taxable year during which the claimant, estate, or trust has claimed the targetedbusiness income tax credit available under Section 63M-1-504.

Amended by Chapter 382, 2008 General Session