Utah · Recycling · UT-RMDZ-001
Recycling Market Development Zone Tax Credit
Publication revised September 24, 2026. Sourcebook page 260.
Credit amount / calculation
Machinery credit uses the applicable Utah income-tax rate, plus 20% of eligible operating expenditures capped at $2,000. Combined current use is limited to 40% of tax liability.
Business fit and eligible activity
Potentially useful to a wood-residual business operating in a designated zone and making products from qualifying recycled/post-consumer material. Qualified investment or approved project activity; confirm eligible property, location and taxpayer type.
Eligibility and practical use
This credit can fit a residual-utilization project, but "recycling" is a legal definition, not a synonym for using sawdust, bark, chips, or mill waste.
Illustrative business benefit
At a 4.45% applicable rate, $750,000 of certified equipment generates $33,375. Eligible operating expenditures of $10,000 add $2,000, for $35,375 before the 40% tax-liability limit. The 20% operating rate does not apply to the equipment.
Timing / first action
Check application or certification requirements before incurring the qualifying expense or beginning the qualifying activity. Obtain environmental-department certification and use the rate for the tax year. The posted August 2024 form shows an older 4.55% rate.
Official sources
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