[§211G-12]  Tax credits.  (a)  The Stateshall issue tax credits to the corporation that may be transferred or otherwiseused to reduce the tax liability of any taxpayer pursuant to chapter 235 or241.  The total amount of tax credits that may be issued, and which may betransferred pursuant to this chapter by the corporation is $36,000,000.  Uponcompliance with subsection (b), the credits shall be freely transferable by thecorporation to transferees and by transferees to subsequent transferees; however,the tax credits so transferred by the corporation shall not be exercisablebefore July 1, 2005, nor after July 1, 2030.  The corporation shall nottransfer tax credits except in conjunction with a legitimate call on acorporation guarantee.  The corporation shall immediately notify the presidentof the senate, the speaker of the house of representatives, and the governor inwriting if any tax credit is transferred by the corporation in conjunction witha legitimate call on a corporation guarantee; provided that the corporationshall not be required to make that notification for transfers to subsequenttransferees.

(b)  Subject to the annual authorization by thelegislature, the corporation may transfer tax credits under this section up tothe annual amount allowed under subsection (c).  Legislative authorization forthe tax credits shall be by a separate legislative act.

(c)  The corporation shall determine the amountof individual tax credits to be transferred pursuant to this chapter and maynegotiate for the sale of those credits subject only to the limits imposed bythis chapter.  The corporation shall limit the transfer of tax credits that maybe claimed and used to reduce the tax otherwise imposed by chapter 235 or 241for one fiscal year (including any tax credits that are carried over by ataxpayer from a prior fiscal year and used to reduce taxes otherwise imposed inthe current fiscal year, as permitted in subsection (g)) to not more than anaggregate total of $12,000,000 per fiscal year.  The board shall clearlyindicate on the face of the certificate or other document transferring the taxcredit the principal amount of the tax credit and the taxable year or years forwhich the credit may be claimed.

(d)  The corporation, in conjunction with the departmentof taxation, shall develop a system for registration of any tax credits issuedor transferred pursuant to this chapter and a system of certificates thatpermits verification that any tax credit claimed upon a tax return is validlyissued, properly taken in the year of claim, and that any transfers of the taxcredit are made in accordance with this chapter.

(e)  The corporation may pay a fee and provideother consideration in connection with the purchase by the corporation of a putoption or other agreement pursuant to which a transfer of tax creditsauthorized by this chapter may be made.

(f)  The tax credits issued or transferredpursuant to this chapter, upon election by the taxpayer at time of use, shallbe treated as a payment or prepayment in lieu of taxes imposed under chapter235 or 241.  Tax credits used pursuant to this chapter shall be claimed as apayment of tax or estimated tax for the purposes of chapter 235 or 241.

(g)  If the tax credits under this sectionexceed the taxpayer's income tax liability under chapter 235 or 241 for anytaxable year, or for any other reason is not claimed by a taxpayer in whole orin part in any taxable year, the excess of the tax credit over liability, orthe amount of the unclaimed tax credit, as the case may be, may be carried overand used as a credit against the taxpayer's income tax liability in anysubsequent year until exhausted, subject to:

(1)  The deadline for the exercise of tax creditsimposed by subsection (a); and

(2)  The monetary limit imposed by subsection (c). [L2004, c 215, pt of §1]