CHAPTER 11. TAXATION.

§11-28-3. Application of credit.

(a) Amount of credit. — For those tax years beginning on or after January 1, 2020, an eligible business entity will be allowed a tax credit in the amount of 50 percent of that entity’s capital expenditures (as defined in Section 263 of the United States Internal Revenue Code of 1986, as amended) at the post-coal mine site for the first five taxable years during which the entity’s principal place of business is located on the post-coal mine site within this state. The dollar amount of the credit claimed by an eligible business entity may not exceed the amount of 50 percent of the entity’s state income tax for a single year.

(b) Application of annual credit allowance. — The credit created by this article is allowed as a credit against the taxpayer’s state tax liability applied as provided in subdivisions (1) and (2) of this subsection, and in that order.

(1) Corporation net income taxes. — Any credit is first applied to reduce the taxes imposed by §11-24-1 et seq. of this code for the taxable year.

(2) Personal income taxes. — After application of §11-28-3(b)(1) of this code, any unused credit is next applied as follows:

(A) If the person making the qualified investment is an electing small business corporation (as defined in Section 1361 of the United States Internal Revenue Code of 1986, as amended), a partnership or a limited liability company that is treated as a partnership for federal income tax purposes, then any unused credit (after application of §11-28-3(b)(1) of this code) is allowed as a credit against the taxes imposed by §11-21-1 et seq. of this code on the income from business or other activity subject to tax under §11-23-1 et seq. of this code.

(B) Electing small business corporations, limited liability companies, partnerships, and other unincorporated organizations shall allocate the credit allowed by this article among its members in the same manner as profits and losses are allocated for the taxable year.

(3) A credit is not allowed under this section against any employer withholding taxes imposed by §11-21-1 et seq. of this code.

(c) Unused credit. — A carryback to a prior taxable year is not allowed for the amount of any unused portion of any annual credit allowance. If the amount of the allowable credit exceeds the taxpayer’s tax liability for the taxable year, the amount which exceeds the tax liability may be carried over and applied as a credit against the tax liability of the taxpayer pursuant to §11-21-1 et seq. or §11-24-1 et seq. of this code for each of the next 10 taxable years following the year of creation of the tax credit unless sooner used.

(d) Eligibility requirements. — Those businesses that benefit from other state economic development programs or incentives that result in a reduction of their income tax liability due shall not be eligible for this tax credit.

(e) Rule-making authority. — The State Tax Division shall promulgate emergency rules pursuant to the provisions of §29A-3-15 of this code. These rules shall include, at a minimum, forms for use in claiming the credit authorized in this article, administration of the credit authorized in this article, and any other matter seen necessary by the State Tax Division for the administration of this article.

Bills Affecting §11-28-3

2004 Regular Session: SB14
2004 Regular Session: SB14
2004 Regular Session: SB594
2004 Regular Session: SB594
2005 Regular Session: HB2445
2005 Regular Session: HB2445
2005 Regular Session: SB188
2005 Regular Session: SB188
2005 Regular Session: SB497
2005 Regular Session: SB497
2005 Regular Session: SB688
2005 Regular Session: SB688
2005 Regular Session: SB688
2006 Regular Session: HB2445
2006 Regular Session: HB2445
2006 Regular Session: HB4566
2006 Regular Session: HB4566
2006 Regular Session: SB43
2006 Regular Session: SB43
2006 Regular Session: SB520
2006 Regular Session: SB520
2006 Regular Session: SB719
2006 Regular Session: SB719
2006 Regular Session: SB719
2007 Regular Session: SB112
2007 Regular Session: SB112
2007 Regular Session: SB446
2007 Regular Session: SB446
2007 Regular Session: SB446
2007 Regular Session: SB536
2007 Regular Session: SB536
2007 Regular Session: SB662
2007 Regular Session: SB692
2007 Regular Session: SB692
2008 Regular Session: SB131
2008 Regular Session: SB332
2009 Regular Session: HB3284
2010 Regular Session: HB4614
2010 Regular Session: SB641
2011 Regular Session: HB2792
2011 Regular Session: SB305
2013 Regular Session: HB2993
2013 Regular Session: SB618
2014 Regular Session: HB2993
2014 Regular Session: SB302
2015 Regular Session: HB2029
2015 Regular Session: HB2262
2015 Regular Session: SB98
2016 Regular Session: HB2029
2016 Regular Session: HB2262
2016 Regular Session: HB4596
2016 Regular Session: SB337
2017 Regular Session: HB2036
2017 Regular Session: SB38
2017 Regular Session: SB487
2018 Regular Session: HB4475
2018 Regular Session: SB12
2018 Regular Session: SB300
2018 Regular Session: SB596
2019 1X: HB168
2019 1X: HB168
2019 Regular Session: HB2228
2019 Regular Session: HB3123
2019 Regular Session: SB29
2019 Regular Session: SB113
2019 Regular Session: SB336
2019 Regular Session: SB439
2019 Regular Session: SB635
2019 Regular Session: SB666
2020 Regular Session: HB2228