Third Substitute S.B. 210

Senator Robert M. Muhlestein proposes to substitute the following bill:

1 INCOME TAX CREDIT FOR STAY-AT-HOME
2 PARENTS OR GUARDIAN
3 1998 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Robert M. Muhlestein
6 AN ACT RELATING TO INDIVIDUAL INCOME TAX; CREATING A TAX CREDIT FOR
7 CERTAIN PARENTS; AND REQUIRING USE OF THE TAX CREDIT IN PREPARING
8 REVENUE ESTIMATES AND BUDGETS.
9 This act affects sections of Utah Code Annotated 1953 as follows:
10 ENACTS:
11 59-10-108.1, Utah Code Annotated 1953
12 This act enacts uncodified material.
13 Be it enacted by the Legislature of the state of Utah:
14 Section 1. Section 59-10-108.1 is enacted to read:
15 59-10-108.1. Tax credit for at-home parent or guardian.
16 (1) As used in this section, "at-home parent" means a parent or guardian who:
17 (a) stays at home and cares for one or more of his or her own children who are not yet age
18 six as of the December 31 of the taxable year for which the credit is claimed;
19 (b) claims the child or children as dependents on a state income tax return for the taxable
20 year for which the credit is claimed; and
21 (c) for whom all of the income for all federal Forms W-2 for the taxable year for which
22 the credit is claimed show an income of $3,000 or less.
23 (2) For taxable years beginning on or after January 1, 2000, there is allowed for each return
24 filed when one or more of the filers is an at-home parent, a nonrefundable credit against the
25 income tax due as provided in the following table:

1 If the state taxable income is: The tax credit is:
2 Less than or equal $500 per child
3 to $20,000
4 Greater than $20,000 $450 per child
5 but less than or
6 equal to $22,500
7 Greater than $22,500 $400 per child
8 but less than or
9 equal to $25,000
10 Greater than $25,000 $350 per child
11 but less than or
12 equal to $27,500
13 Greater than $27,500 $300 per child
14 but less than or
15 equal to $30,000
16 Greater than $30,000 $250 per child
17 but less than or
18 equal to $32,500
19 Greater than $32,500 $200 per child
20 but less than or
21 equal to $35,000
22 Greater than $35,000 $150 per child
23 but less than or
24 equal to $37,500
25 Greater than $37,500 $100 per child
26 but less than or
27 equal to $40,000
28 Greater than $40,000 $50 per child
29 but less than or
30 equal to $75,000
31 (3) A taxpayer may not carry forward or carry back a tax credit authorized by this section.

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1 Section 2. Revenue estimate and budget calculation
2 (1) In calculating revenue estimates and preparing his proposed budget for fiscal year
3 1999-2000, the governor shall calculate state revenues and prepare the budget as if the tax credit
4 created by this bill were in effect.
5 (2) In calculating revenue estimates for fiscal year 1999-2000, the Legislative Fiscal
6 Analyst shall calculate the revenues as if the tax credit created by this bill were in effect.

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