(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.
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