Utah Admin. Code 647-2-117

Current through Bulletin 2024-23, December 1, 2024

Section R647-2-117 - Mineral Exploration Tax Credit

1. In accordance with Section 40-6-24, each operator desiring to claim a tax credit for mineral exploration must submit by March 1 for the previous calendar year, to the division, the Mineral Exploration Tax Credit form, which:

a. Lists the eligible claimant's name;

b. Lists the eligible claimant's contact information, including address, phone number, and email address;

c. Lists the eligible claimant's taxpayer identification number;

d. Lists the amount of the eligible claimant's tax credit;

e. Includes proof of satisfying the certified expenditure definition;

f. A description of the mine where exploration occurred; and

g. Proof of each expenditure.

2. The eligible claimant shall include in the application for a tax credit certificate the following information for the taxable year in which the person seeks a tax credit certification:

a. Proof of engaging in business of mining or extracting minerals;

b. Proof of being subject to a severance tax under Title 59, Chapter 5, Part 2, Mining Severance Tax; and

c. Proof that a certified expenditure was made during the taxable year.

3. After the division receives an application for a tax credit certificate, for each expenditure in the application, the division shall approve the expenditure as a certified expenditure or deny the expenditure as an expenditure that is not certified expenditure. If the division denies an expenditure, the division shall provide the person a written explanation that states each reason the division denied the expenditure and give the person an opportunity to correct deficiencies or provide additional information.

4. The tax credit certificate shall state the amount of the tax credit, which is equal to the amount of the eligible claimant's certified expenditures as approved by the division. The division may not issue a tax credit certificate for certified expenditures related to exploration activities at a mine if the aggregate value of tax credit certificates issued for certified expenditures related to exploration activities at the same mine exceeds $20,000,000.

5. An eligible claimant may assign a tax credit certificate to another person if the eligible claimant provides written notice to the division in a Mineral Tax Credit Reassignment form that includes:

a. The eligible claimant's written certification that they irrevocably elect not to claim the tax credit authorized on the tax credit certificate; and

b. The contact information for the person to whom the eligible credit is assigning the tax credit certificate.

6. If the eligible claimant meets the requirements of Subsections R647-2-117(1) and (2), the division shall issue an assigned tax credit certificate to the person identified by the eligible claimant in an amount equal to the eligible claimant's tax credit certificate. A person to whom an eligible claimant assigns a tax credit certificate may claim the tax credit under Section 59-5-216 as if the person met the requirements, if the person files a return under Title 59, Chapter 5, Part 2, Mining Severance Tax.

7. An eligible claimant who received a tax credit certificate in accordance with this section shall retain the tax credit certificate for the same time period that a person shall keep books and records under Section 59-1-1406.

8. The division shall annually submit by June 30 to the State Tax Commission an electronic list that includes:

a. The name and identifying information for:

i. Each eligible claimant to whom the division issues a tax credit certificate; and

ii. Each person to whom an eligible claimant assigns a tax credit certificate in accordance with Subsections R647-2-117(5) and (6);

b. For each person described in Subsection R647-2-117(8)(a), the amount of the tax credit stated on the tax credit certificate; and

c. For each person described in Subsection R647-2-117(8)(a)(ii), information necessary to identify the tax credit certification that the eligible claimant assigned to the person.

Utah Admin. Code R647-2-117

Amended by Utah State Bulletin Number 2023-05, effective 2/24/2023