Arizona Laws 43-1170. Credit for pollution control equipment
A. A credit is allowed against the taxes imposed by this title for expenses that the taxpayer incurred during the taxable year to purchase real or personal property that is used in the taxpayer’s trade or business in this state to control or prevent pollution. The amount of the credit is equal to ten percent of the purchase price.
Terms Used In Arizona Laws 43-1170
- Amortization: Paying off a loan by regular installments.
- Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
- Department: means the department of revenue, the director or the director's authorized delegate, as the context requires. See Arizona Laws 43-104
- including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
- Partnership: includes a syndicate, group, pool, joint venture or other unincorporated organization, through or by means of which any business, financial operation or venture is carried on and that is not, within the meaning of this title, a trust, estate or corporation. See Arizona Laws 43-104
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Personal property: All property that is not real property.
- Personal property: includes money, goods, chattels, things in action and evidences of debt. See Arizona Laws 1-215
- Property: includes both real and personal property. See Arizona Laws 1-215
- Tax: means the taxes imposed under this title. See Arizona Laws 43-104
- Taxable year: means :
(a) The calendar year or the fiscal year, ending during such calendar year, on the basis of which the taxable income is computed under this title. See Arizona Laws 43-104
- taxpayer: means a corporation. See Arizona Laws 43-1101
- Trade or business: includes the performance of the functions of a public office. See Arizona Laws 43-104
- United States: when used in a geographical sense, includes the states, the District of Columbia and the possessions of the United States. See Arizona Laws 43-104
B. Property that qualifies for the credit under this section includes that portion of a structure, building, installation, excavation, machine, equipment or device and any attachment or addition to or reconstruction, replacement or improvement of that property that is directly used, constructed or installed in this state for the purpose of meeting or exceeding rules or regulations adopted by the United States environmental protection agency, the department of environmental quality or a political subdivision of this state to prevent, monitor, control or reduce air, water or land pollution that results from the taxpayer’s direct operating activities in conducting a trade or business in this state.
C. The credit allowed pursuant to this section does not apply to:
1. The purchase of any personal property that is attached to a motor vehicle.
2. Any property that has a substantial use for a purpose other than the purposes described in subsection B.
3. Any portion of pollution control property that is included as a standard and integral part of another property.
D. Amounts that qualify for a credit under this section must be includible in the taxpayer’s adjusted basis for the property. The adjusted basis of any property with respect to which the taxpayer has claimed a credit shall be reduced by the amount of credit claimed with respect to that asset. This credit does not affect the deductibility for depreciation or amortization of the remaining adjusted basis of the asset.
E. Co-owners of a business, including corporate partners in a partnership, may each claim only the pro rata share of the credit allowed under this section based on the ownership interest. Partners in a partnership that is not a corporation may not claim a share of the credit. The total of the credits allowed all such owners may not exceed the amount that would have been allowed a sole owner.
F. If the allowable tax credit exceeds the taxes otherwise due under this title on the claimant’s income, or if there are no taxes due under this title, the taxpayer may carry the amount of the claim not used to offset the taxes under this title forward for not more than five taxable years’ income tax liability.
G. The maximum credit that a taxpayer may claim under this section is $500,000 in a taxable year.