Section 35-3-05-09-103 - Verification and Certification1. The RTC is based on eligible expenditures made during each taxable year (as limited in the statute) for seedlings, seed/acorns, seeding, planting by hand or machine, site preparation, and post-planting site preparation on all eligible acres. When an approved reforestation practice, as defined in the statute, is completed in the taxable year, the RTC may be computed and claimed with respect to all of the eligible costs of the completed practice. Verification by a qualified forester that the reforestation practice(s) were completed and that the reforestation prescription or plan was followed is required in order to claim the reforestation tax credit. A determination must be made on a year by year basis to determine if the costs incurred during that year are eligible expenditures for approved reforestation practices for eligible tree species on eligible lands. The fact that expenditures made under a prescription or plan during one year do not qualify (for example: some cost share assistance was received and the taxpayer's adjusted gross income exceeded the federal earned income credit level) does not mean that expenditures made under the same prescription or plan in the subsequent or prior year would not qualify for the credit (for example: some cost share assistance was received in the subsequent year, but, in that year, the taxpayer's adjusted gross income was less than the federal earned income credit level). In the event that RTC is earned with respect to a practice completed during a taxable year, and the overall prescription or plan is, for any reason, not subsequently completed in its entirety, any RTC previously earned must be recaptured in full.2. When a pass-through entity (generally, a partnership or S Corporation) is the eligible owner and makes expenditures qualifying for the RTC, the credit is passed through to the investors who may utilize the credit to offset all or a portion of their income tax liability. The Schedule K-1 issued by the pass-through entity to the investor should indicate the investor's allocated RTC. Also, a copy of the pass-through entity's RTC form containing the certification of a qualified forester as required by the statute, should be furnished to the investor to substantiate his claim for the credit on his income tax return. A copy of the RTC form provided by the pass-through entity should be attached to the investor's RTC form prepared and filed with the investor's income tax return. Regulation 803 provides that an income tax credit allowed to an S corporation may be passed on to the shareholders but may only be used to offset and reduce tax on income of the S corporation allocated to the shareholders. Similar restrictions are implied with respect to income tax credits allowed to partnerships and other pass-through entities which are passed on to their investors. Notwithstanding this statement in Regulation 803 and the similar implied restrictions relating to partnerships and other pass-through entities, the reforestation tax credit received from pass-through entities may, subject to the limitations stated in Section 27-7-22.15, be used by investors to offset all or a portion of their income tax liability.35 Miss. Code. R. § 3-05-09-103