By Myrna Trauntvein
Times-News Correspondent
Perhaps the third time will be the charm and the state government will approve the recycling zones proposed by Juab County.
Byron Woodland, county economic development director, has been working to get the zones approved by the state.
“We have to put in the zones in order for our county businesses to get a tax credit,” said LuWayne Walker, commissioner.
Utah Code §59-7-610 and 1007 allows a nonrefundable tax credit against individual income tax, corporate franchise or income tax, or fiduciary tax if operating in a recycling market development zone, as defined in Utah Code Section 63M-38f-1102.
The credit consists of: (a) 5 percent of the purchase price paid during the taxable year for machinery and equipment used directly in commercial composting, or manufacturing facilities or plant units that manufacture recycled items or reduce or reuse post-consumer waste material; and (b) 20 percent of net expenditures, up to a maximum credit of $2,000 to third parties for rent, wages, supplies, tools, test inventory, and utilities made by the taxpayer for establishing and operating recycling or composting technology in Utah.
A taxpayer may not claim this credit or carry it forward into a year that the taxpayer has claimed the targeted business tax credit or the enterprise zone credit.
The Recycling Market Development Act allows for county governments to designate the zones and commissioners have been working toward that goal.
In the latest document prepared for the state, it states that: “Juab County Commission supports the proposed creation of Recycling Market Zones for all the parcels listed that are within Juab County and commits to provide local incentives to participants in the project.”
Those who would be included, as referred to in the document, would be the Mills/Hall property; the Mills/Powell property; the Mills/Kuhnis facility; Nephi Auto Wrecking; and Ash Grove Cement, said Val Jones, commission chairman.
“In addition to working with our existing businesses which are all in commercial zones, we are trying to make it possible to develop an industrial zone by the train siding,” said Chad Winn, commissioner.
There are those who are interested in such a zone.
According to Les Prall, Rural Development, with the Utah Governor’s Office of Economic Development, in 1996, the Utah Legislature created the Utah Recycling Market Development Zone Program which focuses on recycling as an economic development tool.
As more products are recycled and used to manufacture new products the economy will be stimulated through new company expansion or formation and the creation of additional jobs, he said.
“The zone legislation was established to encourage businesses to use recycled materials in their manufacturing processes and create new products for sale. It also benefits business or individuals that collect, process, distribute recycled materials.”
Composting is considered to be eligible recycling operation.
Eligible recycling businesses that are located in designated Recycling Market Development Zones qualify for: 5 percent Utah state income tax credit on the cost of machinery and equipment; 20 percent Utah state income tax credit (up to $2,000) on eligible operating expenses; technical assistance from state recycling economic development professionals; and various local incentives.
