Section 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(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.(8) A taxpayer may not claim or carry forward a tax credit under this section for a taxable year during which the taxpayer claims the targeted business income tax credit under Section 59-7-624.Amended by Chapter 367, 2021 General Session ,§ 18, eff. 5/5/2021, retrospective operation for a taxable year beginning on or after January 1, 2021.Amended by Chapter 360, 2020 General Session ,§ 40, eff. 7/1/2020, coordination clause.Amended by Chapter 360, 2020 General Session ,§ 18, eff. 7/1/2020.Amended by Chapter 354, 2020 General Session ,§ 88, eff. 5/12/2020.Amended by Chapter 82, 2020 General Session ,§ 1, eff. 5/12/2020(retroactive to 1/1/2019).Amended by Chapter 1, 2019SP2 General Session ,§ 19, eff. 4/1/2020, which was repealed by Chapter 1, 2020 General Session ,§ 1, eff. 1/29/2020 .Amended by Chapter 247, 2019 General Session ,§ 4, eff. 5/14/2019.Amended by Chapter 283, 2015 General Session ,§ 20, eff. 5/12/2015.Amended by Chapter 382, 2008 General Session