2005 Idaho Code - 63-3029D — TAX CREDIT FOR QUALIFIED EQUIPMENT UTILIZING POSTCONSUMER WASTE OR POSTINDUSTRIAL WASTE

                                  TITLE  63
                             REVENUE AND TAXATION
                                  CHAPTER 30
                                  INCOME TAX
    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 per cent (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 per cent (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" mean 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 per cent (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 per cent (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 as that term is defined in section 39-3003, Idaho Code.
    (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.