Arizona Laws 43-1081.01. Credit for agricultural pollution control equipment
A. A credit is allowed against the taxes imposed by this title for expenses that a taxpayer, involved in the commercial production of livestock, livestock products or agricultural, horticultural, viticultural or floricultural crops or products, incurred during the taxable year to purchase tangible personal property that is primarily used in the taxpayer’s trade or business in this state to control or prevent pollution. The amount of the credit is equal to twenty-five percent of the cost of the real or personal property. The maximum credit that a taxpayer may claim under this section is $25,000 in a taxable year.
Terms Used In Arizona Laws 43-1081.01
- 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.
- including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
- Individual: means a natural person. See Arizona Laws 43-104
- 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 any person who is subject to a tax imposed by this chapter. See Arizona Laws 43-1001
- Trade or business: includes the performance of the functions of a public office. See Arizona Laws 43-104
B. Property that qualifies for the credit under this section includes the 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 to prevent, monitor, control or reduce air, water or land pollution.
C. 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.
D. Co-owners of a business, including individual partners in a partnership, may each claim only the pro rata share of the credit allowed under this section based on the ownership interest. The total of the credits allowed all such owners may not exceed the amount that would have been allowed a sole owner.
E. 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 amount of the claim not used to offset the taxes under this title may be carried forward to the next five consecutive taxable years as a credit against subsequent years’ income tax liability.