§ 105-129.28. (Repealed effective January 1, 2008. See note) Credit for reinvestment.
§105‑129.28. (Repealed effective January 1, 2008. See note) Credit forreinvestment.
(a) Credit. A majorrecycling facility that is accessible by neither ocean barge nor ship and thattransports materials to the facility or products away from the facility isallowed a credit against the tax imposed by Part 1 of Article 4 of this Chapterequal to its additional transportation and transloading expenses incurred withrespect to the materials and products due to its inability to use ocean bargesor ships. The additional expenses for which credit is allowed are expenses dueto using river barges and expenses due to having to use another mode oftransportation because the quantity that is transported by river barge isinsufficient to meet the facility's needs. In order to claim the credit allowedby this section, the facility must provide the Secretary of Commerce auditeddocumentation of the amount of its additional transportation and transloadingexpenses incurred during the taxable year.
(b) Cap. The creditallowed to a major recycling facility under this section for the taxable yearmay not exceed the applicable annual cap provided in the following table:
TaxableYear Cap
1998 $ 150,000
1999 $ 640,000
2000 $ 3,860,000
2001 $ 8,050,000
2002 $ 9,550,000
2003 $ 10,100,000
2004‑2007 $ 10,400,000
(c) Reduction. Forthe first ten taxable years after the owner begins transporting materials andproducts to and from the major recycling facility, the credit allowed by thissection must be reduced by the amount of credit allowed in previous years thatwas used for a purpose other than an allowable purpose under subsection (d) ofthis section, as certified by the Secretary of Commerce.
(d) Use of CreditedAmount. For the first ten taxable years after the owner begins constructionof the major recycling facility, the owner must use the amount of creditallowed under this section to pay for (i) investment in rail or roadsassociated with the facility, (ii) investment in water system infrastructuredesigned to reduce the expense of transporting materials and products to andfrom the recycling facility, and (iii) investment in land and infrastructurefor other industrial sites located in the same county as the recyclingfacility. If the owner determines that there are no reasonable economicopportunities in a given year to use the total amount of credit for theexpenditures described above, the owner may use the excess for investment at orin connection with the recycling facility above the initial required investmentof three hundred million dollars ($300,000,000).
Expenses incurred for thepurposes allowed in this subsection during a taxable year in the ten‑yearperiod may be counted toward a credit allowed in a later taxable year in theten‑year period. If the owner is not able to use the full amount of thecredit during a taxable year for any of the purposes allowed by thissubsection, the excess may be used for these purposes in subsequent taxableyears.
The owner must provide theSecretary of Commerce with annual audited documentation demonstrating that theamount of credit received under this section during the previous twelve‑monthperiod has not been used for a purpose inconsistent with this subsection. Ifthe Secretary of Commerce determines that the owner has used any of the creditfor a purpose that is inconsistent with the requirements of this subsection,the Secretary of Commerce shall certify the amount so used to the Secretary ofRevenue and the credit allowed the owner under this section for the followingtaxable year shall be reduced by that amount in accordance with subsection (c)of this section.
After the end of the ten‑yearperiod, the amount of any credit allowed under this section that has not yetbeen used may be used for investment at or in connection with the recyclingfacility above the initial required investment of three hundred million dollars($300,000,000).
(e) Credit Refundable. If the credit allowed by this section exceeds the amount of tax imposed byPart 1 of Article 4 of this Chapter for the taxable year reduced by the sum ofall credits allowable, the Secretary shall refund the excess to the taxpayer.The refundable excess is governed by the provisions governing a refund of anoverpayment by the taxpayer of the tax imposed in Part 1 of Article 4 of thisChapter. In computing the amount of tax against which multiple credits areallowed, nonrefundable credits are subtracted before refundable credits. (1998‑55,s. 12.)