(1) Subject to other provisions of this section, a claimant, estate, or trust in a recycling market development zone as defined in Section 63N-2-402 may claim the following nonrefundable tax credits: (a) a tax credit of 5% of 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 claimant, estate, or trust for establishing and operating recycling or composting technology in Utah; and (ii) $2,000.

(a) a tax credit of 5% of 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

(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

(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 claimant, estate, or trust for establishing and operating recycling or composting technology in Utah; and (ii) $2,000.

(i) 20% of net expenditures to third parties for rent, wages, supplies, tools, test inventory, and utilities made by the claimant, estate, or trust for establishing and operating recycling or composting technology in Utah; and

(ii) $2,000.

(2) (a) To claim a tax credit described in Subsection (1), the claimant, estate, or trust shall receive from the Governor's Office of Economic Development a written certification, on a form approved by the commission, that includes: (i) a statement that the claimant, estate, or trust is operating within the boundaries of a recycling market development zone; (ii) for claims of the tax credit described in Subsection (1)(a): (A) the type of the machinery and equipment that the claimant, estate, or trust purchased; (B) the date that the claimant, estate, or trust 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 claimant, estate, or trust is claiming a tax credit; (E) the amount of the claimant's, estate's, or trust's tax credit; and (F) a statement that the machinery and equipment are integral to the composting or recycling process; and (iii) for claims of the tax credit described in Subsection (1)(b): (A) the type of net expenditure that the claimant, estate, or trust made to a third party; (B) the date that the claimant, estate, or trust made the payment to a third party; (C) the amount that the claimant, estate, or trust paid to each third party; (D) the total amount that the claimant, estate, or trust paid to all third parties; (E) a statement that the net expenditures support the establishment and operation of recycling or composting technology in Utah; and (F) the amount of the claimant's, estate's, or trust's tax credit. (b) (i) The Governor's Office of Economic Development shall provide a claimant, estate, or trust seeking to claim a tax credit under Subsection (1) with a copy of the written certification. (ii) The claimant, estate, or trust 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 Governor's Office of Economic Development shall submit to the commission an electronic list that includes: (i) the name and identifying information of each claimant, estate, or trust to which the office issues a written certification; and (ii) for each claimant, estate, or trust, the amount of each tax credit listed on the written certification.

(a) To claim a tax credit described in Subsection (1), the claimant, estate, or trust shall receive from the Governor's Office of Economic Development a written certification, on a form approved by the commission, that includes: (i) a statement that the claimant, estate, or trust is operating within the boundaries of a recycling market development zone; (ii) for claims of the tax credit described in Subsection (1)(a): (A) the type of the machinery and equipment that the claimant, estate, or trust purchased; (B) the date that the claimant, estate, or trust 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 claimant, estate, or trust is claiming a tax credit; (E) the amount of the claimant's, estate's, or trust's tax credit; and (F) a statement that the machinery and equipment are integral to the composting or recycling process; and (iii) for claims of the tax credit described in Subsection (1)(b): (A) the type of net expenditure that the claimant, estate, or trust made to a third party; (B) the date that the claimant, estate, or trust made the payment to a third party; (C) the amount that the claimant, estate, or trust paid to each third party; (D) the total amount that the claimant, estate, or trust paid to all third parties; (E) a statement that the net expenditures support the establishment and operation of recycling or composting technology in Utah; and (F) the amount of the claimant's, estate's, or trust's tax credit.

(i) a statement that the claimant, estate, or trust is operating within the boundaries of a recycling market development zone;

(ii) for claims of the tax credit described in Subsection (1)(a): (A) the type of the machinery and equipment that the claimant, estate, or trust purchased; (B) the date that the claimant, estate, or trust 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 claimant, estate, or trust is claiming a tax credit; (E) the amount of the claimant's, estate's, or trust's tax credit; and (F) a statement that the machinery and equipment are integral to the composting or recycling process; and

(A) the type of the machinery and equipment that the claimant, estate, or trust purchased;

(B) the date that the claimant, estate, or trust 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 claimant, estate, or trust is claiming a tax credit;

(E) the amount of the claimant's, estate's, or trust's tax credit; and

(F) a statement that the machinery and equipment are integral to the composting or recycling process; and

(iii) for claims of the tax credit described in Subsection (1)(b): (A) the type of net expenditure that the claimant, estate, or trust made to a third party; (B) the date that the claimant, estate, or trust made the payment to a third party; (C) the amount that the claimant, estate, or trust paid to each third party; (D) the total amount that the claimant, estate, or trust paid to all third parties; (E) a statement that the net expenditures support the establishment and operation of recycling or composting technology in Utah; and (F) the amount of the claimant's, estate's, or trust's tax credit.

(A) the type of net expenditure that the claimant, estate, or trust made to a third party;

(B) the date that the claimant, estate, or trust made the payment to a third party;

(C) the amount that the claimant, estate, or trust paid to each third party;

(D) the total amount that the claimant, estate, or trust paid to all third parties;

(E) a statement that the net expenditures support the establishment and operation of recycling or composting technology in Utah; and

(F) the amount of the claimant's, estate's, or trust's tax credit.

(b) (i) The Governor's Office of Economic Development shall provide a claimant, estate, or trust seeking to claim a tax credit under Subsection (1) with a copy of the written certification. (ii) The claimant, estate, or trust 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.

(i) The Governor's Office of Economic Development shall provide a claimant, estate, or trust seeking to claim a tax credit under Subsection (1) with a copy of the written certification.

(ii) The claimant, estate, or trust 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 Governor's Office of Economic Development shall submit to the commission an electronic list that includes: (i) the name and identifying information of each claimant, estate, or trust to which the office issues a written certification; and (ii) for each claimant, estate, or trust, the amount of each tax credit listed on the written certification.

(i) the name and identifying information of each claimant, estate, or trust to which the office issues a written certification; and

(ii) for each claimant, estate, or trust, the amount of each tax credit listed on the written certification.

(3) A claimant, estate, or trust may not claim a tax credit under Subsection (1)(a), Subsection (1)(b), or both that exceeds 40% of the claimant's, estate's, or trust's state income tax liability as the tax liability is calculated: (a) for the taxable year in which the claimant, estate, or trust made the purchases or payments; (b) before any other tax credits the claimant, estate, or trust may claim for the taxable year; and (c) before the claimant, estate, or trust claiming a tax credit authorized by this section.

(a) for the taxable year in which the claimant, estate, or trust made the purchases or payments;

(b) before any other tax credits the claimant, estate, or trust may claim for the taxable year; and

(c) before the claimant, estate, or trust claiming a tax credit authorized by this section.

(4) The commission shall make rules governing what information a claimant, estate, or trust 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 claimant, estate, or trust may carry forward, to the next three taxable years, the amount of the tax credit that exceeds the taxpayer's income tax liability for the taxable year.

(6) A claimant, estate, or trust may not claim or carry forward a tax credit described in Subsection (1)(a) in a taxable year during which the claimant, estate, or trust claims or carries forward a tax credit under Section 63N-2-213.

(7) A claimant, estate, or trust may not claim a tax credit described in Subsection (1)(b) in a taxable year during which the claimant, estate, or trust claims or carries forward a tax credit under Section 63N-2-213.

(8) A claimant, estate, or trust may not claim or carry forward a tax credit available under this section for a taxable year during which the claimant, estate, or trust claims the targeted business income tax credit under Section 59-10-1112.