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 Sectionmay claim the following nonrefundable tax credits: 19-13-102 a tax credit equal to the product of the percentage listed in Subsectionand the purchase price paid for machinery and equipment used directly in: 59-7-104(2) commercial composting; or manufacturing facilities or plant units that: manufacture, process, compound, or produce recycled items of tangible personal property for sale; or reduce or reuse postconsumer waste material; and a tax credit equal to the lesser of: 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 $2,000.
(2) To claim a tax credit described in Subsection, the taxpayer shall receive from the Department of Environmental Quality a written certification, on a form approved by the commission, that includes: (1) a statement that the taxpayer is operating a business within the boundaries of a recycling market development zone; for a claim of the tax credit described in Subsection: (1)(a) the type of the machinery and equipment that the taxpayer purchased; the date that the taxpayer purchased the machinery and equipment; the purchase price for the machinery and equipment; the total purchase price for all machinery and equipment for which the taxpayer is claiming a tax credit; a statement that the machinery and equipment are integral to the composting or recycling process; and the amount of the taxpayer's tax credit; and for a claim of the tax credit described in Subsection: (1)(b) the type of net expenditure that the taxpayer made to a third party; the date that the taxpayer made the payment to a third party; the amount that the taxpayer paid to each third party; the total amount that the taxpayer paid to all third parties; a statement that the net expenditures support the establishment and operation of recycling or composting technology in the state; and the amount of the taxpayer's tax credit. The Department of Environmental Quality shall provide a taxpayer seeking to claim a tax credit under Subsectionwith a copy of the written certification. (1) 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 The Department of Environmental Quality shall submit to the commission an electronic list that includes: the name and identifying information of each taxpayer to which the Department of Environmental Quality issues a written certification; and 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, Subsection, or both that exceeds 40% of the taxpayer's state income tax liability as the tax liability is calculated: (1)(a) (1)(b) for the taxable year in which the taxpayer made the purchases or payments; before any other tax credits the taxpayer may claim for the taxable year; and 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 Subsectionsthrough, a taxpayer may carry forward, to the next three taxable years, the amount of a tax credit described in Subsectionthat the taxpayer does not use for the taxable year. (6) (8) (1)(a)
(6) A taxpayer may not claim or carry forward a tax credit described in Subsectionin a taxable year during which the taxpayer claims or carries forward a tax credit under Section. (1)(a) 63N-2-213
(7) A taxpayer may not claim a tax credit described in Subsectionin a taxable year during which the taxpayer claims or carries forward a tax credit under Section. (1)(b) 63N-2-213