REVENUE AND TAXATION
63-3029D. Tax credit for qualified equipment utilizing postconsumer waste or postindustrial waste. (1) For income tax years commencing on and after January 1, 1994, there shall be allowed a credit against the tax imposed pursuant to this chapter for each taxpayer who purchases qualified equipment on and after January 1, 1994.
(2) The credit provided pursuant to the provisions of subsection (1) of this section shall be an amount equal to twenty percent (20%) of the costs incurred by the taxpayer for purchases of qualified equipment and shall be claimed in the income tax year in which at least ninety percent (90%) of the total production of such qualified equipment is used by the taxpayer to manufacture products utilizing postconsumer waste or postindustrial waste. In no event shall the tax credit be more than thirty thousand dollars ($30,000) per tax year.
(3) If the amount of the credit provided pursuant to the provisions of subsection (2) of this section exceeds the amount of income taxes otherwise due on the income of the taxpayer 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 such income tax year may be carried forward as a credit against subsequent years’ income tax liability for a period not exceeding seven (7) years and shall be applied first to the earliest income tax years possible. Any amount of the credit which is not used after such period shall not be refundable to the taxpayer.
(4) As used in this section:
(a) "Collection" means:
(i) The acquisition of materials from businesses or the general public through purchase or donation, including the organization of systems for such acquisitions;
(ii) The preparation of materials for over-the-road transportation through cleaning, densification by shredding, baling, or any other method, or coalescence, including the organization of systems for such preparation; or
(iii) The transportation of postconsumer waste or postindustrial waste between separate geographical locations.
(b) "Costs" means the amount of the purchase price or the amount of the annual lease payment.
(c) "Postconsumer waste" or "postindustrial waste" means only those products and materials consisting of paper, glass or plastic generated by businesses or consumers which have served their intended end use or usefulness and either have been or would normally be disposed of as solid waste except for the fact that they are separated from solid waste for purposes of collection, recycling or reuse. "Postconsumer waste" or "postindustrial waste" shall not include radioactive waste, as defined in this section, or hazardous waste, as defined in chapter 44, title 39, Idaho Code.
(d) "Product" means any material resulting from a manufacturing process and offered for sale to the private or public sector which is composed of at least fifty percent (50%) postconsumer waste or postindustrial waste. "Product" does not include any shredded material unless such shredded material is incorporated directly into the manufacturing process.
(e) "Purchase" means:
(i) Any transaction under which title to qualified equipment is transferred for consideration; or
(ii) Any lease contract for qualified equipment for a period of at least three (3) years regardless of whether title to qualified equipment is transferred at the end of such period.
(f) "Qualified equipment" means machinery or equipment located within Idaho which has at least an estimated three (3) years’ useful life and of which at least ninety percent (90%) of the total production thereof is used by the taxpayer to manufacture products utilizing postconsumer waste or postindustrial waste. "Qualified equipment" shall not include any machinery or equipment which is used for the collection of postconsumer waste or postindustrial waste.
(g) "Radioactive waste" or "nuclear waste" means a waste or combination of wastes of a solid, liquid, semisolid or contained gaseous form which contains radiation.
(5) Any recomputation of the credit allowed in subsection (2) of this section on property disposed of or ceasing to qualify, prior to the close of its useful life, shall be determined according to section 47 of the Internal Revenue Code, as such existed on November 5, 1990.
[63-3029D, added 1994, ch. 342, sec. 1, p. 1077; am. 2007, ch. 83, sec. 10, p. 233.]