§ 26-51-1008 - Credit granted -- Surface water conversion within critical areas.
26-51-1008. Credit granted -- Surface water conversion within critical areas.
(a) For projects located within critical groundwater areas, there shall be allowed as a credit against the tax imposed by the Income Tax Act of 1929, 26-51-101 et seq., in an amount equal to fifty percent (50%) of the project cost incurred for the reduction of groundwater use by substitution of surface water for water used for industrial, commercial, agricultural, or recreational purposes.
(b) (1) The amount of the credit that may be used by a taxpayer for a taxable year may not exceed the lesser of the amount of individual or corporate income tax otherwise due or nine thousand dollars ($9,000) for projects using water for agricultural or recreational purposes and two hundred thousand dollars ($200,000) for projects using water for industrial or commercial purposes.
(2) Any unused tax credit may be carried over for a maximum of two (2) consecutive taxable years for projects using water for agricultural or recreational purposes and a maximum of four (4) consecutive taxable years for projects using water for industrial or commercial purposes following the taxable year in which the credit originated.