B&O Tax Credit to Encourage Alternatives to Field Burning
Persons who are eligible for the sales/use tax exemption for machinery and equipment
used to reduce field burning may also take a credit against their B&O tax
liability. The credit is limited to fifty percent (50%) of the costs expended
for agriculture eligible structures or acquiring eligible machinery and equipment.
No application is necessary for the credit. The credit is taken on the excise tax return. Persons taking the credit must keep records necessary for the
Department to verify eligibility for the credit. Please note, this credit is subject
to the following limitations:
- The credit may not exceed your B&O tax liability.
- You cannot carry this credit over to subsequent calendar years.
- The credit must be claimed by the due date of the last tax return for the
calendar year in which the payment is made.
- Refunds will not be given in place of credits.
- The credit may not be claimed for expenditures that occurred before March
22, 2000.
- This B&O tax credit expires on January 1, 2006.