Tax Credit for Investment

10% of the amount invested in specialized equipment may be credited against the tax payable by the enterprise for the current year, where the enterprise purchases and actually uses specialized equipment in environmental protection, energy or water conservation, safe production, etc. as prescribed in Catalogue of Preferential Corporate Income Tax Treatments for Specialized Equipment in Environmental Protection, Catalogue of Preferential Corporate Income Tax Treatments for Specialized Equipment in Energy or Water Conservation and Catalogue of Preferential Corporate Income Tax Treatments for Specialized Equipment in Safe Production ; any excess in such credit may be carried forward for five succeeding tax years.

   An enterprise that is eligible for such preferential CIT treatment shall actually purchase and use the prescribed equipment. An enterprise that purchases the aforementioned specialized equipment and then transfers or leases it within five years of the purchase shall no longer be eligible for the preferential CIT treatment, and shall repay the amount that has been credited against the CIT payable.