43-1085.01. Credit for solar liquid fuel; research and development; production; delivery systems; definitions

A. Credits are allowed against the taxes imposed by this title for research and development, production and delivery system costs associated with solar liquid fuel as provided by this section.

B. For taxable years beginning from and after December 31, 2010 through December 31, 2021, a credit is allowed for increased research and development activity related to solar liquid fuel as provided by section 41 of the internal revenue code, except that the amount of the credit is equal to forty per cent of the amount exceeding the excess, if any, of the qualified research expenses for the taxable year over the base amount as defined in section 41(c) of the internal revenue code. Qualified research includes only research conducted in this state, including research conducted at a university in this state and paid for by the taxpayer.

C. For taxable years beginning from and after December 31, 2015 through December 31, 2026, a credit is allowed for the production of solar liquid fuel in this state in commercial quantities. The amount of the credit is equal to eleven cents per one hundred thousand British thermal units of fuel produced in this state during the taxable year.

D. For taxable years beginning from and after December 31, 2015 through December 31, 2026, a credit is allowed for costs incurred during the taxable year to convert or modify existing motor vehicle fuel service stations for the retail sale of solar liquid fuel to customers. The amount of the credit is equal to thirty per cent of the cost of conversion or modification, but not more than twenty thousand dollars per taxable year per service station.

E. Co-owners of a business, including partners in a partnership and shareholders of an S corporation, as defined in section 1361 of the internal revenue code, may each claim only the pro rata share of the credit allowed under this section based on the ownership interest. The total of the credits allowed all such owners may not exceed the amount that would have been allowed for the sole owner of the business.

F. A taxpayer that claims a credit for increased research and development activity under subsection B of this section shall not claim a credit under section 43-1074.01 for the same expenses.

G. For the purposes of this section:

1. "Commercial quantities" means an amount of fuel that can be produced and sold by an incorporated entity in the wholesale or retail trade.

2. "Production" means the production of infrastructure compatible fuels derived from sunlight, carbon dioxide and water that are converted into intermediary chemicals and gases that are used to produce hydrocarbon fuels.

3. "Solar liquid fuel" means liquid fuel that is generated through processes that use sunlight, carbon dioxide and water to produce infrastructure compatible liquid hydrocarbon fuels.

43-1085.01. Credit for solar liquid fuel; research and development; production; delivery systems; definitions

A. Credits are allowed against the taxes imposed by this title for research and development, production and delivery system costs associated with solar liquid fuel as provided by this section.

B. For taxable years beginning from and after December 31, 2010 through December 31, 2021, a credit is allowed for increased research and development activity related to solar liquid fuel as provided by section 41 of the internal revenue code, except that the amount of the credit is equal to forty per cent of the amount exceeding the excess, if any, of the qualified research expenses for the taxable year over the base amount as defined in section 41(c) of the internal revenue code. Qualified research includes only research conducted in this state, including research conducted at a university in this state and paid for by the taxpayer.

C. For taxable years beginning from and after December 31, 2015 through December 31, 2026, a credit is allowed for the production of solar liquid fuel in this state in commercial quantities. The amount of the credit is equal to eleven cents per one hundred thousand British thermal units of fuel produced in this state during the taxable year.

D. For taxable years beginning from and after December 31, 2015 through December 31, 2026, a credit is allowed for costs incurred during the taxable year to convert or modify existing motor vehicle fuel service stations for the retail sale of solar liquid fuel to customers. The amount of the credit is equal to thirty per cent of the cost of conversion or modification, but not more than twenty thousand dollars per taxable year per service station.

E. Co-owners of a business, including partners in a partnership and shareholders of an S corporation, as defined in section 1361 of the internal revenue code, may each claim only the pro rata share of the credit allowed under this section based on the ownership interest. The total of the credits allowed all such owners may not exceed the amount that would have been allowed for the sole owner of the business.

F. A taxpayer that claims a credit for increased research and development activity under subsection B of this section shall not claim a credit under section 43-1074.01 for the same expenses.

G. For the purposes of this section:

1. "Commercial quantities" means an amount of fuel that can be produced and sold by an incorporated entity in the wholesale or retail trade.

2. "Production" means the production of infrastructure compatible fuels derived from sunlight, carbon dioxide and water that are converted into intermediary chemicals and gases that are used to produce hydrocarbon fuels.

3. "Solar liquid fuel" means liquid fuel that is generated through processes that use sunlight, carbon dioxide and water to produce infrastructure compatible liquid hydrocarbon fuels.