§ 39-22-2103 — Recapture

(1) As of the last day of any taxable year during the
compliance period, if the amount of the qualified basis of a qualified development
with respect to a taxpayer is less than the amount of the qualified basis as of the
last day of the prior taxable year, then the amount of the taxpayer's state income
tax liability for that taxable year shall be increased by the credit recapture amount.

(2) For purposes of subsection (1) of this section, the credit recapture amount
is an amount equal to the aggregate decrease in the credit allowed to the taxpayer
pursuant to this part 21 for all prior taxable years that would have resulted if the
accelerated portion of the credit allowable by reason of this part 21 were not
allowed for all prior taxable years with respect to the reduced amount of qualified
basis described in subsection (1) of this section.

(3) For purposes of subsection (2) of this section, the accelerated portion of
the credit for the prior taxable years with respect to any amount of qualified basis
is the difference between:

(a) The aggregate credit allowed pursuant to this part 21, notwithstanding
this subsection (3), for the years with respect to such qualified basis; and

(b) The aggregate credit that would be allowable pursuant to this part 21 for
such years with respect to the qualified basis if the aggregate credit that would
have been allowable, but for this subsection (3), for the entire compliance period
were allowable ratably over fifteen years.

(4) In the event that recapture of any credit is required in any tax year, the
return submitted for that tax year to the department shall include the proportion of
credit required to be recaptured, the identity of each taxpayer subject to the
recapture, and the amount of credit previously allocated to such taxpayer.

Legislative History

Source: L. 2000: Entire part added, p. 878, � 1, effective August 2.