Utah Recycling Market Development Zone Tax Credit

Recycling Market Development Zone Tax Credit
TC-40R Recycling Market Development Zones Tax Credit
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Utah State Tax Commission

Recycling Market Development Zones Tax Credit

TC-40R
Get forms online - tax.utah.gov

Rev. 8/23

A taxpayer may not claim this credit or carry it forward into a year the taxpayer has claimed the targeted business income
tax credit or the enterprise zone tax credit.
The Utah Department of Environmental Quality (DEQ) must sign and certify if you are seeking credit for machinery or equipment. See
the reverse side of this form for detailed instructions.
Do not send this form with your return. Keep this form and all related documents with your records. You must complete a
new Part E each year you claim a carryforward credit.
PART A - Taxpayer Information
Name of taxpayer claiming credit

Taxpayer's identification number (SSN or EIN)

Address

Telephone number

City, state, zip code

PART B - Qualified Purchases
Date
Purchased

List machinery and equipment purchased

Purchase price
$
$
$

Total Purchases - Add all purchases in PART B
Total Credit Allowed - Multiply total purchases by 4.65 percent (.0465)

PART C - Qualified Expenditures
List rent, wages paid, supplies, tools, test
inventory, and utilities purchased

Date
paid

Amounts paid
during tax year

List rent, wages paid, supplies, tools, test
inventory, and utilities purchased

Date
paid

Amounts paid
during tax year

$

$

$

$

$

$

Total Paid - Add all amounts paid in PART C
Total Credit Allowed - Multiply total paid by 20 percent (.20)
Do not enter more than $2,000 (see instructions)

PART D - DEQ Certification
To be signed by an authorized agent of the Department of Environmental Quality.
I certify that: 1) the taxpayer named in PART A of this form and the named company is located within the boundaries of a recycling zone, 2) the
machinery and equipment listed in PART B are integral to the company’s composting or recycling process, and 3) payments listed in PART C support
the company’s establishment or operation of recycling or composting technology in Utah.
Authorized signature by DEQ

Title

Date signed

PART E - Credit Calculation
1. Add total credits allowed from PART B and PART C. Enter sum on this line ............................................. 1 $
2. Multiply your Utah tax by 40 percent (.40). Non or part-year residents receive an apportioned credit....... 2
3. Enter the smaller of the amounts on line 1 or line 2. This is your tax credit ............................................... 3 $
IMPORTANT: See the instructions for your individual income tax (TC-40), corporate tax (TC-20 or TC-20S), partnership tax (TC-65) or fiduciary tax
(TC-41) return to determine the amount of Utah tax. The credit code is “10” for all returns. Contact DEQ for any other questions.

PART F - Credit Carryover
Any unused amount of the total credit allowed under PART E, line 3, attributable to purchases of qualified machinery and equipment
under PART B, may be carried forward three years.
Applied to tax year:
1. Amount of tax credit carried forward - first year..........................................

1 $

................

2. Amount of tax credit carried forward - second year....................................

2

................

3. Amount of tax credit carried forward - third year ........................................

3

................

A taxpayer may not claim this credit or carry it forward into a year that the taxpayer has claimed the targeted
business tax credit or the enterprise zone credit.
Utah Code §§59-7-610 and 59-10-1007 allow a nonrefundable tax credit against individual income tax, corporate
franchise or income tax, or fiduciary tax if operating in a recycling market development zone, as defined in Utah Code
§19-13-102. The credit is equal to : (a) 4.65 percent of the purchase price paid during the taxable year for machinery and
equipment used directly in commercial composting, or manufacturing facilities or plant units that manufacture recycled
items or reduce or reuse post-consumer waste material; and (b) 20 percent of the net expenditures paid 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 Utah, up to a maximum credit of $2,000.
PART A - TAXPAYER INFORMATION
Enter name and address information of taxpayer.
PART B - QUALIFIED PURCHASES
List any machinery or equipment purchased and used directly in commercial composting or in manufacturing facilities or
plant units that manufacture, process, compound or produce recycled items for sale or reduce or reuse post consumer
waste material, and enter the purchase price. Add all purchases and multiply the total purchases by 4.65 percent (.0465).
This is the credit for machinery and equipment.
PART C - QUALIFIED EXPENDITURES
List expenditures for rent, wages, supplies, tools, test inventory and utilities, and the amount of the expenditure in the
appropriate column. Total all expenditures listed in PART C and multiply the total by 20 percent (.20). If the amount is
greater than $2,000, only enter $2,000.
PART D - DEQ CERTIFICATION
You may not claim this tax credit unless an authorized agent of the Department of Environmental Quality has signed this
form.
PART E - CREDIT CALCULATION
Add together the "Total credit allowed" from PARTS B and C. Multiply the amount of your Utah income tax by 40 percent
(.40). Non or part-year residents must use the apportioned Utah tax. Your Recycling Market Development Zone Tax
Credit is the smaller of line 1 or line 2.
A pass-through entity must pass through the credit to its pass-through entity taxpayers. Give a copy of this form to each
pass-through entity taxpayer with that pass-through entity taxpayer’s share of the credit entered on Part E, line 1. The
pass-through entity taxpayer will then calculate the credit they are eligible to take by completing lines 2 and 3 using their
return information.
PART F - CREDIT CARRYOVER
Taxpayers may carry forward for three years any of the unused total credit allowed in PART E, line 3, that is attributable to
purchases of qualified machinery and equipment under PART B. Indicate the amounts you are carrying forward, along
with the appropriate years, on lines 1 through 3 of PART F.
Carryforward recycling market development zone credits are applied against Utah individual income tax, corporate
franchise or income tax or fiduciary tax due before the application of any recycling market development zone tax credits
earned in the current year and on a first-earned, first-used basis.
Do not send this form with your return. Keep this form and all related documents with your records and provide
to the Tax Commission upon request. You must complete a new form each year you claim a carryforward credit.
To get this approval for this credit, contact:
Utah Department of Environmental Quality
Division of Waste Management and Radiation Control
195 North 1950 West, 2nd Floor
Salt Lake City, UT 84116
801-536-0200
deq.utah.gov/waste-management-and-radiation-control/solid-waste-program
For more information, email [email protected], or call 801-297-2200 or 1-800-662-4335.