TITLE 42
State Affairs and Government

CHAPTER 42-64.3
Distressed Areas Economic Revitalization Act

SECTION 42-64.3-7


§ 42-64.3-7. Resident business owner tax modification.

(a) In computing his or her annual tax liability pursuant to the provisions of chapter 11 or 30 of title 44, a domiciliary of an enterprise zone who owns and operates a qualified business facility in that zone and which business is not required to file under chapter 11, 13, 14 or 17 of title 44 may:

(1) For the first three (3) years after certification, whether or not consecutive, deduct fifty thousand dollars ($50,000) per year as a modification reducing federal adjusted gross income; and

(2) For the fourth and fifth years after certification, whether or not consecutive, deduct twenty-five thousand dollars ($25,000) per year as a modification reducing federal adjusted gross income.

(b) Any modification provided in subdivisions (1) and (2) of subsection (a) shall not be available in taxable years other than the year in which the taxpayer qualifies for tax modification.

(c) In the case of multiple business owners, the modifications provided in subdivisions (1) and (2) of subsection (a) shall be apportioned according to the ownership interests of the domiciliary owners of the qualified business.

(d) A taxpayer who elects this modification shall not be eligible for the business tax credits under § 42-64.3-6.

History of Section.
(P.L. 1982, ch. 396, § 1; P.L. 1991, ch. 340, § 1; P.L. 1994, ch. 176, § 1; P.L. 1997, ch. 68, § 1.)