Section 8705-H - Carryover, carryback and assignment of credit(a) General rule.-- If a qualified taxpayer cannot use the entire amount of the tax credit for the taxable year in which the tax credit is first approved, then the excess may be carried over to succeeding taxable years and used as a credit against the qualified tax liability of the qualified taxpayer for those taxable years. Each time the tax credit is carried over to a succeeding taxable year, it shall be reduced by the amount that was used as a credit during the immediately preceding taxable year. The tax credit provided by this article may be carried over and applied to succeeding taxable years for not more than seven taxable years following the first taxable year for which the qualified taxpayer was entitled to claim the credit.(b)Application.-- A tax credit certificate received by the department in a taxable year first shall be applied against the qualified taxpayer's qualified tax liability for the current taxable year as of the date on which the credit was issued before the tax credit can be applied against any qualified tax liability under subsection (a).(c)No carryback or refund.-- A qualified taxpayer may not carry back or obtain a refund of all or any portion of an unused tax credit granted to the qualified taxpayer under this article.(d)Sale or assignment.--The following shall apply: (1) A qualified taxpayer or a purchaser or assignee of a tax credit obtained under Section 1703-h or a shareholder, member or partner of a pass-through entity that was transferred the tax credit or a portion of the tax credit from such pass-through entity subject to Section 1706-h, upon application to and approval by the department of community and economic development, may sell or assign, in whole or in part, a tax credit granted to the qualified taxpayer under this article.(2) Before an application is approved, the department must find that the applicant has filed all required state tax reports and returns for all applicable taxable years and paid any balance of state tax due as determined at settlement, assessment or determination by the department.(e)Purchasers and assignees.-- (1) If a purchaser or assignee of all or a portion of a tax credit obtained under Section 1703-h cannot use the entire amount of the tax credit for the taxable year in which the tax credit was purchased or assigned, the excess may be carried over to succeeding taxable years and used as a credit against the qualified tax liability of the purchaser or assignee for those taxable years.(2) Each time a tax credit is carried over to a succeeding taxable year, the tax credit shall be reduced by the amount that was used as a credit during the immediately preceding taxable year.(3) The tax credit may be carried over and applied to succeeding taxable years for not more than seven taxable years following the first taxable year for which the qualified taxpayer was entitled to claim the credit.(4) The purchaser or assignee may not carry back the credit or obtain a refund.Amended by P.L. TBD 2019 No. 13, § 13.2, eff. 7/1/2019.Added by P.L. 751 2012 No. 85, § 19, eff. 7/1/2013.