Ariz. Admin. Code § 15-2D-1001

Current through Register Vol. 30, No. 40, October 4, 2024

Section R15-2D-1001 - Environmental Technology Facility Tax Credit

A. A taxpayer claiming a tax credit for a qualified environmental technology facility under A.R.S. § 43-1169 shall retain records as required by A.R.S. § 42-1105. In addition, a taxpayer shall retain the following records to substantiate the tax credit:

1. A copy of the completed application packet submitted to the Arizona Department of Commerce.

2. The certificate of qualification issued by the Arizona Department of Commerce.

3. A copy of the memorandum of understanding entered into with the Arizona Department of Commerce.

4. A copy of each of the environmental technology annual qualification reports filed with the Arizona Department of Commerce.

5. A schedule showing the amount of credit claimed for each taxable year and the amount used for each taxable year.

6. The source documents that support the amount and date of capital expenditures made in constructing a qualified environmental technology facility.

B. A taxpayer shall retain the records specified in subsection (A) for the period in which the Department may issue a deficiency assessment for any taxable year that the taxpayer claims a credit or a carryover credit. A taxpayer may retain source documents in a machine-sensible format or through microfilm or microfiche, if the information is retrievable on request by Department personnel.

C. In addition to the recapture of previously used credits required by subsections (G) and (H) of A.R.S. § 43-1169, a taxpayer shall reduce the amount of any unused carryover credit related to amounts spent to construct a qualified environmental technology facility as follows:

1. If, before the facility is placed in service, the taxpayer abandons construction or changes plans in a manner that no longer qualifies as an environmental technology manufacturing, producing, or processing facility under A.R.S. § 41-1514.02, the total unused carryover credit is reduced to zero.

2. If, within five years after being placed in service, the facility ceases for any reason to operate as an environmental technology manufacturing, producing, or processing facility as described in A.R.S. § 41-1514.02, the total unused carryover credit is reduced by the applicable percentage in A.R.S. § 43-1169(H).

Ariz. Admin. Code § R15-2D-1001

New Section adopted by final rulemaking at 6 A.A.R. 4105, effective October 4, 2000 (Supp. 00-4).