1. (1) "Annual investment", "Investment" or "Qualifying investment" means the purchase of most types of tangible property, except land, such as buildings, machinery, vehicles, furniture, and equipment that:

   1. (a) qualifies for depreciation under the Internal Revenue Service's Form 4562; and
   2. (b) is put into service at an operating address of the business entity, that is within an enterprise zone designated by the office for the applicable tax year.
2. (2) "Baseline" means the highest number of employee positions that existed at the business entity in the previous taxable year.
3. (3) "Qualified business use vehicle" means an automobile, light truck, heavy truck, van, utility vehicle, boat, recreational vehicle, airplane, or motorcycle.
4. (4) "New full-time employee position" means a position that has been newly created in addition to the baseline filled by an employee working at least 30 hours per week where the period ends in the tax year for which the credit is claimed.

5. (5) "Payment documentation" means a:

   1. (a) bank statement;
   2. (b) cleared check;
   3. (c) signed and executed financing agreement; or
   4. (d) signed statement from the seller confirming the payer, payee, date paid, and amount paid for cash payments.
6. (6) "Purchase documentation" means a bill of sale, contract of sale, receipt, invoice, or other documentation which identifies the buyer, seller, purchase price, items purchased, and the date of purchase.
7. (7) "Residential rental property" means the same as Internal Revenue Service's publication 527.
8. (8) "Retail trade" means a business entity that collects sales and use tax based on Section 59-12-103.
9. (9) "Same ownership" means two or more business entities that are owned or partially owned by the same individual or individuals.
10. (10) "Value-added business entity" means a company that creates a change in the physical state or form of a product in a manner that enhances its value, thus expanding the customer base of the product. Examples include milling wheat into flour or making strawberries into jam.

In addition to the definitions under Sections 63N-2-202, 59-7-614.10, and 59-10-1037 the following terms are defined:

KEY: enterprise zones, tax credits

Date of Last Change: August 7, 2024

Notice of Continuation: October 30, 2025

Authorizing, and Implemented or Interpreted Law: 63N-2-213(6)