Utah Code § 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.