{"data":{"id":"us-ut/utah-code-59-7-610","jurisdiction":"us-ut","citation":"Utah Code § 59-7-610","heading":"Recycling market development zones tax credits.","body":"(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:\n(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:\n(i) commercial composting; or\n(ii) manufacturing facilities or plant units that:\n(A) manufacture, process, compound, or produce recycled items of tangible personal property for sale; or\n(B) reduce or reuse postconsumer waste material; and\n(b) a tax credit equal to the lesser of:\n(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\n(ii) $2,000.\n(2)\n(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:\n(i) a statement that the taxpayer is operating a business within the boundaries of a recycling market development zone;\n(ii) for a claim of the tax credit described in Subsection (1)(a):\n(A) the type of the machinery and equipment that the taxpayer purchased;\n(B) the date that the taxpayer purchased the machinery and equipment;\n(C) the purchase price for the machinery and equipment;\n(D) the total purchase price for all machinery and equipment for which the taxpayer is claiming a tax credit;\n(E) a statement that the machinery and equipment are integral to the composting or recycling process; and\n(F) the amount of the taxpayer's tax credit; and\n(iii) for a claim of the tax credit described in Subsection (1)(b):\n(A) the type of net expenditure that the taxpayer made to a third party;\n(B) the date that the taxpayer made the payment to a third party;\n(C) the amount that the taxpayer paid to each third party;\n(D) the total amount that the taxpayer paid to all third parties;\n(E) a statement that the net expenditures support the establishment and operation of recycling or composting technology in the state; and\n(F) the amount of the taxpayer's tax credit.\n(b)\n(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.\n(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.\n(c) The Department of Environmental Quality shall submit to the commission an electronic list that includes:\n(i) the name and identifying information of each taxpayer to which the Department of Environmental Quality issues a written certification; and\n(ii) for each taxpayer, the amount of each tax credit listed on the written certification.\n(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:\n(a) for the taxable year in which the taxpayer made the purchases or payments;\n(b) before any other tax credits the taxpayer may claim for the taxable year; and\n(c) before the taxpayer claims a tax credit authorized by this section.\n(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.\n(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.\n(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.\n(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.","path":["Title 59 Revenue and Taxation","Chapter 59-7 Corporate Franchise and Income Taxes","Part 59-7-6 Credits"],"source_url":"https://le.utah.gov/xcode/Title59/Chapter7/59-7-S610.html","current_through":"2026 General Session","vintage":"","retrieved_at":"2026-09-03T11:34:33Z","sha256":"f543d1c0067ccee222e0120f0267379ab2aaaa673b4aa2e97642d265dd35c13b","source_id":"us-ut","stale":false,"prev":"us-ut/utah-code-59-7-609","next":"us-ut/utah-code-59-7-612"},"notice":"GroundRules: Original legal text. Not legal advice."}