(1) (a) In accordance with section 39-21-304 (1), which requires each bill that creates a new tax expenditure to include a tax preference performance statement as part of a statutory legislative declaration, the general assembly finds and declares that the purpose of the tax credit provided in this section is to induce certain designated behavior by taxpayers, specifically the modification of aircraft that are powered by leaded aviation gasoline so that such aircraft can be certified to be powered by unleaded aviation gasoline and no longer use leaded aviation gasoline. (b) The general assembly and the state auditor shall measure the effectiveness of the credit in achieving the purpose specified in subsection (1)(a) of this section based on the number of credits claimed. (2) As used in this section, unless the context otherwise requires: (a) "Aircraft" has the same meaning as set forth in section 43-10-102 (1). (b) "Aviation gasoline" means gasoline-based fuel that is used to power an aircraft. (c) "Leaded aviation gasoline" means any aviation fuel containing tetraethyl lead additives. (d) "Qualifying aircraft" means an aircraft that has been powered by leaded aviation gasoline and for which a supplemental type certificate or any other authorization that approves the completed modification of the aircraft to be powered by unleaded aviation gasoline has been issued. (e) "Qualifying expenses" means any actual out-of-pocket expenses incurred and paid by a qualifying taxpayer for the purpose of modifying an aircraft registered with the federal aviation administration in this state so that it is a qualifying aircraft. (f) "Qualifying taxpayer" means a person subject to tax under this article 22 who is the owner of an aircraft as indicated on the aircraft registry maintained by the federal aviation administration. (g) "Supplemental type certificate" means a type certificate issued by the federal aviation administration to an applicant that has modified an aeronautical product from its original design with federal aviation administration approval. (h) "Unleaded aviation gasoline" means aviation gasoline that does not include lead. (3) For any income tax year commencing on or after January 1, 2025, but before January 1, 2030, a qualifying taxpayer who incurs qualifying expenses is allowed a credit against the income taxes imposed by this article 22 in the tax year in which the qualifying aircraft is registered by the federal aviation administration in this state in an amount equal to fifty percent of all qualifying expenses incurred; except that the maximum amount of the credit that may be claimed for qualifying expenses incurred in modifying any one aircraft is five hundred dollars. (4) If the amount of a credit authorized by this section exceeds the amount of income taxes otherwise due on the income of the qualifying taxpayer claiming the credit in the income tax year for which the credit is being claimed, the amount of the credit not used as an offset against income taxes in that income tax year may not be carried forward and must be refunded to the qualifying taxpayer. (5) This section is repealed, effective December 31, 2039.
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