Utah Admin. Code R647-2-117 - Mineral Exploration Tax Credit
1. In accordance with Section
40-6-24, each operator desiring to
claim a tax credit for mineral exploration must submit by March 1 for the
previous calendar year, to the division, the Mineral Exploration Tax Credit
form, which:
a. Lists the eligible claimant's
name;
b. Lists the eligible
claimant's contact information, including address, phone number, and email
address;
c. Lists the eligible
claimant's taxpayer identification number;
d. Lists the amount of the eligible
claimant's tax credit;
e. Includes
proof of satisfying the certified expenditure definition;
f. A description of the mine where
exploration occurred; and
g. Proof
of each expenditure.
2.
The eligible claimant shall include in the application for a tax credit
certificate the following information for the taxable year in which the person
seeks a tax credit certification:
a. Proof of
engaging in business of mining or extracting minerals;
b. Proof of being subject to a severance tax
under Title 59, Chapter 5, Part 2, Mining Severance Tax; and
c. Proof that a certified expenditure was
made during the taxable year.
3. After the division receives an application
for a tax credit certificate, for each expenditure in the application, the
division shall approve the expenditure as a certified expenditure or deny the
expenditure as an expenditure that is not certified expenditure. If the
division denies an expenditure, the division shall provide the person a written
explanation that states each reason the division denied the expenditure and
give the person an opportunity to correct deficiencies or provide additional
information.
4. The tax credit
certificate shall state the amount of the tax credit, which is equal to the
amount of the eligible claimant's certified expenditures as approved by the
division. The division may not issue a tax credit certificate for certified
expenditures related to exploration activities at a mine if the aggregate value
of tax credit certificates issued for certified expenditures related to
exploration activities at the same mine exceeds $20,000,000.
5. An eligible claimant may assign a tax
credit certificate to another person if the eligible claimant provides written
notice to the division in a Mineral Tax Credit Reassignment form that includes:
a. The eligible claimant's written
certification that they irrevocably elect not to claim the tax credit
authorized on the tax credit certificate; and
b. The contact information for the person to
whom the eligible credit is assigning the tax credit certificate.
6. If the eligible claimant meets
the requirements of Subsections
R647-2-117(1) and
(2), the division shall issue an assigned tax
credit certificate to the person identified by the eligible claimant in an
amount equal to the eligible claimant's tax credit certificate. A person to
whom an eligible claimant assigns a tax credit certificate may claim the tax
credit under Section
59-5-216 as if the person met the
requirements, if the person files a return under Title 59, Chapter 5, Part 2,
Mining Severance Tax.
7. An
eligible claimant who received a tax credit certificate in accordance with this
section shall retain the tax credit certificate for the same time period that a
person shall keep books and records under Section
59-1-1406.
8. The division shall annually submit by June
30 to the State Tax Commission an electronic list that includes:
a. The name and identifying information for:
i. Each eligible claimant to whom the
division issues a tax credit certificate; and
ii. Each person to whom an eligible claimant
assigns a tax credit certificate in accordance with Subsections
R647-2-117(5) and
(6);
b. For each person described in Subsection
R647-2-117(8)(a),
the amount of the tax credit stated on the tax credit certificate;
and
c. For each person described in
Subsection R647-2-117(8)(a)(ii),
information necessary to identify the tax credit certification that the
eligible claimant assigned to the person.
Notes
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