(1)A taxpayer that pays for all or part of the expenses of a recompletion or workover may claim a nonrefundable tax credit against taxes due under Section 59-5-102 equal to the amount stated on a tax credit certificate that the office issues to the taxpayer.
(2)The maximum tax credit per taxpayer per well in a calendar year is the lesser of:
(2)(a) 20% of the taxpayer's payment of expenses of a well recompletion or workover during the calendar year; and
(3)A taxpayer may carry forward a tax credit allowed under this section for the next three calendar years if the tax credit exceeds the taxpayer's tax liability under Section 59-5-102 for the calendar year in which the taxpayer claims the tax credit.
(4)(4)(a) To claim a tax credit, a taxpayer shall follow the procedures
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(1) A taxpayer that pays for all or part of the expenses of a recompletion or workover may claim a nonrefundable tax credit against taxes due under Section 59-5-102 equal to the amount stated on a tax credit certificate that the office issues to the taxpayer.
(2) The maximum tax credit per taxpayer per well in a calendar year is the lesser of:
(2)(a) 20% of the taxpayer's payment of expenses of a well recompletion or workover during the calendar year; and
(2)(b) $30,000.
(3) A taxpayer may carry forward a tax credit allowed under this section for the next three calendar years if the tax credit exceeds the taxpayer's tax liability under Section 59-5-102 for the calendar year in which the taxpayer claims the tax credit.
(4) (4)(a) To claim a tax credit, a taxpayer shall follow the procedures and requirements of this Subsection (4).
(4)(b) The taxpayer shall prepare a summary of the taxpayer's expenses of a recompletion or workover during the calendar year that the taxpayer completed the recompletion or workover.
(4)(c) An independent certified public accountant shall:
(4)(c)(i) review the summary from the taxpayer; and
(4)(c)(ii) provide a report on the accuracy and validity of the amount of expenses of a recompletion or workover that the taxpayer included in the summary, in accordance with the agreed upon procedures.
(4)(d) The taxpayer shall submit the taxpayer's summary and the independent certified public accountant's report to the division to verify that the expenses certified by the independent certified public accountant are recompletion or workover expenses.
(4)(e) The division shall return to the taxpayer:
(4)(e)(i) the taxpayer's summary;
(4)(e)(ii) the report by the independent certified public accountant; and
(4)(e)(iii) a report by the division that includes the amount of approved recompletion or workover expenses.
(4)(f) The taxpayer shall apply to the office for a tax credit certificate to receive a written certification, on a form the commission approves, that includes:
(4)(f)(i) the amount of the taxpayer's payments of expenses of a recompletion or workover during the calendar year; and
(4)(f)(ii) the amount of the taxpayer's tax credit.
(4)(g) A taxpayer that receives a tax credit certificate shall retain the tax credit certificate for the same time period that a person is required to keep books and records under Section 59-1-1406.
(5) The office shall submit to the commission an electronic list that includes:
(5)(a) the name and identifying information of each taxpayer to which the office issues a tax credit certificate; and
(5)(b) for each taxpayer, the amount of the tax credit listed on the tax credit certificate.
(6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
(6)(a) the office may make rules to govern the application process for receiving a tax credit certificate; and
(6)(b) the division shall make rules to establish the agreed upon procedures described in Subsection (4).