S.B. 171

1

INDIVIDUAL INCOME TAX AND CORPORATE FRANCHISE
2 AND INCOME TAX CREDITS - CONTRIBUTIONS TO
3 PROVIDERS OF SERVICES TO PERSONS WITH DISABILITIES
4 2000 GENERAL SESSION
5 STATE OF UTAH
6 Sponsor: Robert F. Montgomery
7 AN ACT RELATING TO CORPORATE FRANCHISE AND INCOME TAXES AND THE
8 INDIVIDUAL INCOME TAX ACT; MODIFYING AND INCREASING INDIVIDUAL INCOME
9 TAX AND CORPORATE FRANCHISE AND INCOME TAX CREDITS FOR CASH
10 CONTRIBUTIONS TO PRIVATE NONPROFIT PROVIDERS OF SERVICES TO PERSONS
11 WITH DISABILITIES; AND MAKING TECHNICAL CHANGES.
12 This act affects sections of Utah Code Annotated 1953 as follows:
13 AMENDS:
14 59-7-602, as enacted by Chapter 169, Laws of Utah 1993
15 59-10-108, as last amended by Chapter 183, Laws of Utah 1990
16 Be it enacted by the Legislature of the state of Utah:
17 Section 1. Section 59-7-602 is amended to read:
18 59-7-602. Credit for cash contributions to private nonprofit providers.
19 (1) As used in this section, "private nonprofit provider" means an organization that:
20 (a) is exempt from federal income taxation under Section 501(c)(3), Internal Revenue
21 Code;
22 (b) is:
23 (i) a human services licensee as defined in Section 62A-2-101 ; and
24 (ii) licensed by the Department of Human Services under Title 62A, Chapter 2, Licensure
25 of Programs and Facilities; and
26 (c) provides services and supports to a person who is eligible to receive services and
27 supports under Title 62A, Chapter 5, Services to People with Disabilities.

28 [(1)] (2) (a) For [tax] taxable years beginning on or after January 1, [1983, and thereafter]
29 2001, in computing the tax due [the state of Utah pursuant to] under Section 59-7-104 , [there shall
30 be a tax] a taxpayer may claim a nonrefundable credit [allowed] as provided in this section for cash
31 contributions made [within] during the taxable year to [nonprofit rehabilitation sheltered workshop
32 facilities for the disabled operating in Utah which are certified by the Department of Human
33 Services as a qualifying facility. The allowable credit is] a private nonprofit provider.
34 (b) (i) Except as provided in Subsection (2)(b)(ii), the credit provided for in Subsection
35 (2)(a) is in an amount equal to 50% of the aggregate amount of [the] a cash [contributions to
36 qualifying rehabilitation facilities, but in no case shall the credit allowed exceed $1,000]
37 contribution to a private nonprofit provider.
38 (ii) Notwithstanding Subsection (2)(b)(i), the total amount of credit a taxpayer may claim
39 for a taxable year may not exceed $2,000.
40 [(2)] (3) If a taxpayer has subtracted an amount [for] of a cash [contributions] contribution
41 to a [sheltered workshop when] private nonprofit provider in determining federal taxable income,
42 that amount shall be added [back] to unadjusted income under Section 59-7-105 before a taxpayer
43 may claim a credit [may be taken] under this section.
44 (4) A taxpayer may not carry forward or carry back a credit under this section.
45 Section 2. Section 59-10-108 is amended to read:
46 59-10-108. Credit for cash contributions to private nonprofit providers.
47 (1) As used in this section, "private nonprofit provider" means an organization that:
48 (a) is exempt from federal income taxation under Section 501(c)(3), Internal Revenue
49 Code;
50 (b) is:
51 (i) a human services licensee as defined in Section 62A-2-101 ; and
52 (ii) licensed by the Department of Human Services under Title 62A, Chapter 2, Licensure
53 of Programs and Facilities; and
54 (c) provides services and supports to a person who is eligible to receive services and
55 supports under Title 62A, Chapter 5, Services to People with Disabilities.
56 (2) (a) For [tax] taxable years beginning on or after January 1, [1983, and thereafter] 2001,
57 in computing the tax due [the state of Utah pursuant to] under Section 59-10-104 [there shall be
58 a tax], a taxpayer may claim a nonrefundable credit [allowed] as provided in this section for cash

59 contributions made [within] during the taxable year to [nonprofit rehabilitation sheltered workshop
60 facilities for the handicapped operating in Utah which are certified by the Department of Human
61 Services as a qualifying facility . The allowable credit is] a private nonprofit provider.
62 (b) (i) Except as provided in Subsection (2)(b)(ii), the credit provided for in Subsection
63 (2)(a) is in an amount equal to 50% of the aggregate amount of [the] a cash [contributions to the
64 qualifying rehabilitation facilities, but in no case shall the allowed credit exceed $200. The
65 amount of] contribution to a private nonprofit provider.
66 (ii) Notwithstanding Subsection (2)(b)(i), the total amount of credit a taxpayer may claim
67 for a taxable year may not exceed $500.
68 (3) A cash contribution claimed as a [tax] credit [pursuant to] under this section may not
69 also be claimed as a charitable deduction in determining [net] state taxable income.
70 (4) A taxpayer may not carry forward or carry back a credit under this section.




Legislative Review Note
as of 2-8-00 3:34 PM

A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel