For the purposes of this part, unless otherwise stated herein, the following definitions apply:

1. (1) “Cost”, in the case of a transfer of title or a finance lease, means the amount of the purchase price and, in the case of a lease which is not a finance lease but which otherwise qualifies as a purchase under this part, means the amount of the lease payments due to be paid during the term of the lease after deducting any portion of the lease payments attributable to interest, insurance, and taxes;
2. (2) “Director” means the Director of the Division of Environmental Quality;
3. (3) “Division” means the Division of Environmental Quality;

4. (4) “Equipment to service waste reduction, reuse, or recycling equipment” means expenditures, machinery, or equipment that keeps existing machinery or equipment in running order by providing:

   1. (A) Repair;
   2. (B) Maintenance;
   3. (C) Adjustment;
   4. (D) Inspection; or
   5. (E) Supplies;
5. (5) “Finance lease” means a lease agreement which is treated as a purchase by a lessee for Arkansas income tax purposes;
6. (6) “For commercial purposes” means collecting, separating, processing, modifying, converting, or treating solid waste other than waste that is self-generated;
7. (7) “Home scrap” means materials or byproducts generated from and commonly reused within an original manufacturing process;
8. (8) “Maintenance” means expenditures, machinery, or equipment used to keep existing machinery or equipment in a condition that approaches or equates to its original condition;
9. (9) “Motor vehicle” means a vehicle or trailer that is licensed, or that normally would be licensed, for use on highways in Arkansas;

10. (10)

    1. (A) “Postconsumer waste” means waste materials generated by a business, governmental entity, or consumer which have served their intended end use and have been recovered from or otherwise diverted from the solid waste stream for the purpose of recycling.
    2. (B) This term does not include home scrap and preconsumer materials;
11. (11) “Preconsumer material” means waste material generated during any step in the production of a product and recovered or otherwise diverted from the solid waste stream for the purpose of recycling but does not include home scrap;
12. (12) “Project startup” means the first day a waste reduction, reuse, or recycling project begins collecting, separating, processing, modifying, converting, or treating solid waste or manufacturing products containing recovered materials, as applicable;
13. (13) “Purchase” means a transaction under which title and possession to an item is transferred for valuable consideration, or a finance lease contract or finance lease transaction for a period of at least three (3) years regardless of whether title to the item is transferred at the end of such period;
14. (14) “Recovered materials” means those materials which have been separated, diverted, or removed from the waste stream for the purpose of recycling and includes preconsumer material and postconsumer waste but not home scrap;
15. (15) “Recycling” means the systematic collecting, sorting, decontaminating, and returning of waste materials to commerce as commodities for use or exchange;
16. (16) “Repair” means expenditures, machinery, or equipment used to restore existing machinery or equipment to its original or similar condition and capacity after damage or after deterioration from use;
17. (17) “Solid waste” means all putrescible and nonputrescible wastes in solid or semisolid form, including, but not limited to, yard or food waste, waste glass, waste metals, waste plastics, waste papers, waste paperboard, and all other solid or semisolid wastes resulting from industrial, commercial, agricultural, community, and residential activities; and

18. (18)

    1. (A) “Waste reduction, reuse, or recycling equipment” means new or used machinery or equipment located and operating in Arkansas on the last day of the taxable year which is operated or used exclusively in Arkansas to collect, separate, process, modify, convert, or treat solid waste so that the resulting product may be used as a raw material or for productive use or to manufacture products containing recovered materials.
    2. (B) The term also includes devices which are directly connected with or are an integral and necessary part of such machinery or equipment and are necessary for such collection, separation, processing, modification, conversion, treatment, or manufacturing, but not motor vehicles.