HB 2004 provides a personal and corporate income tax
credit for taxpayers engaged in business that manufacture products in a rural
Arizona county and that have been patented at a state university.
Provisions
·Provides personal and corporate income tax credits for
businesses manufacturing products patented at state universities beginning new
operations or relocating existing operations after June 30, 2000, in a county
with a population of fewer than 500,000.
·Provides that the business’ primary manufacturing
activity involves products patented after June 30, 2000, by a university under
the jurisdiction of the Arizona Board of Regents.
·Limits the tax credit amount to the cost of the patent
each year, whether the patent is purchased or periodic payments are made to the
patent holder, for up to five years.
·Provides that the tax credit allotted to co-owners must
not exceed the credit amount that would have been allowed one sole owner, and
it must be distributed proportionately to the co-owners, according to their
ownership interest.
·Provides that if the amount of the tax credit exceeds
the amount of the tax for the current year, the taxpayer may rollover the
excess tax credit for the succeeding years for up to 5 years.
·Contains a delayed effective date of from and after
June 30, 2000.