Representative David Clark
proposes the following amendments:
1. Page
2, Lines 42 through 43
:
42
. enacts
{
a
}
nonrefundable retirement tax
{
credit
}
credits
under the Single Rate
Individual
43
Income Tax Act;
2. Page
4, Lines 92 through 93
:
92
This bill provides effective dates
and provides for retrospective operation
.
93
This bill provides revisor instructions.
This bill coordinates with H.B. 27, Sales and Use Tax Modifications, by merging substantive
amendments.
3. Page
6, Lines 178 through 179
:
178
{
(I)
}
(A)
the percentage calculated in accordance with Subsection (5)(a)(ii); and
179
{
(II)
}
(B)
the amount appropriated by the Legislature to the fund for the fiscal year.
4. Page
17, Lines 503 through 505
:
503
(2) (a) (i) For taxable years beginning on or after January 1,
{
2008
}
2007
, a business entity
that
504
purchases and completes or participates in the financing of a residential energy system to
505
supply all or part of the energy required for a residential unit owned or used by the business
5. Page
17, Lines 514 through 515
:
514
(C) The credit under this Subsection (2)(a) is allowed for any residential energy system
515
completed and placed in service on or after January 1,
{
2008
}
2007
.
6. Page
18, Lines 523 through 524
:
523
(b) (i) For taxable years beginning on or after January 1,
{
2008
}
2007
, a business entity that
524
purchases or participates in the financing of a commercial energy system situated in Utah is
7. Page
18, Lines 538 through 539
:
538
(C) The credit under this Subsection (2)(b) is allowed for any commercial energy
539
system completed and placed in service on or after January 1,
{
2008
}
2007
.
8. Page
18, Lines 548 through 549
:
548
of the lease.
(vi) A tax credit allowed by this Subsection (2)(b) may not be carried forward or carried
back.
549
(c) (i) For taxable years beginning on or after January 1,
{
2008
}
2007
, a business entity that
9. Page
19, Lines 567 through 568
:
567
(C) The credit under this Subsection (2)(c) is allowed for any commercial energy
568
system completed and placed in service on or after January 1,
{
2008
}
2007
.
10. Page
19, Lines 576 through 578
:
576
(iii) If the amount of a tax credit under Subsection (2)(a)
{
or (b)
}
exceeds a business
577
entity's tax liability under this chapter for a taxable year, the amount of the credit exceeding the
578
liability may be carried
{
over
}
forward
for a period which does not exceed the next four taxable
years.
11. Page
20, Lines 595 through 596
:
595
(4) (a) On or before October 1, 2012, and every five years thereafter, the Utah Tax
596
Review Commission shall review
{
the
}
each
tax credit provided by this section and make
12. Page
27, Lines 825 through 827
:
825
(2) For taxable years beginning on or after January 1, [2001]
{
2008
}
2007
, [but beginning on
826
or before December 31, 2006,] a claimant, estate, or trust may claim a nonrefundable tax credit
827
as provided in this section if:
13. Page
28, Lines 843 through 844
:
843
(c) The tax credit under this section is allowed for any residential energy system
844
completed and placed in service on or after January 1, [2001]
{2008
}
2007
[, but on or before
14. Page
29, Line 869
:
869
(b) (i) For taxable years beginning on or after January 1, [2001]
{2008
}
2007
, [but beginning
15. Page
29, Lines 877 through 878
:
877
(iii) The tax credit under this Subsection (6) is allowed for any residential energy
878
system completed and placed in service on or after January 1, [2001]
{
2008
}
2007
[, but on or before
16. Page
31, Lines 942 through 943
:
942
(11) (a) On or before October 1, 2012, and every five years thereafter, the Utah Tax
943
Review Commission shall review
{
the
}
each
tax credit provided by this section and make
17. Page
32, Line 977
:
977
(2) (a) (i) For taxable years beginning on or after January 1,
{
2008
}
2007
, a business entity
that
18. Page
33, Lines 992 through 993
:
992
(C) The credit under this Subsection (2)(a) is allowed for any commercial energy
993
system completed and placed in service on or after January 1,
{
2008
}
2007
.
19. Page
33, Line 1003
:
1003
(b) (i) For taxable years beginning on or after January 1,
{
2008
}
2007
, a business entity that
20. Page
34, Lines 1036 through 1037
:
1036
(6) (a) On or before October 1, 2012, and every five years thereafter, the Utah Tax
1037
Review Commission shall review
{
the
}
each
tax credit provided by this section and make
21. Page
38, Lines 1156 through 1160
:
1156
(4) The tax credit allowed by Subsection (2) shall be reduced by
{
$.014
}
$.013
for each dollar
1157
by which a claimant's state taxable income exceeds:
1158
(a) for a claimant who has a single filing status,
{
$14,000
}
$12,000
;
1159
(b) for a claimant who has a head of household filing status,
{
$21,000
}
$18,000
; or
1160
(c) for a claimant who has a joint filing status,
{
$28,000
}
$24,000
.
22. Page
39, Line 1178 through Page 40, Line 1207
:
1179
(1) As used in this section:
1180
(a) "Eligible
age 65 or older
retiree" means a resident or nonresident individual, regardless of
whether
1181
that individual is retired, who:
1182
(i) is 65 years of age or older;
1183
(ii) was born on or before December 31, 1952; and
1184
(iii) has state taxable income under this part.
(b) (i) "Eligible retirement income" means income received by an eligible under age 65 retiree
as a pension or annuity if that pension or annuity is:
(A) paid to the eligible under age 65 retiree or the surviving spouse of an eligible under age 65
retiree; and
(B) (I) paid from an annuity contract purchased by an employer under a plan that meets the
requirements of Section 404(a)(2), Internal Revenue Code;
(II) purchased by an employee under a plan that meets the requirements of Section 408, Internal
Revenue Code; or
(III) paid by:
(Aa) the United States;
(Bb) a state or a political subdivision of a state; or
(Cc) the District of Columbia.
(ii) "Eligible retirement income" does not include amounts received by the spouse of a living
eligible under age 65 retiree because of the eligible under age 65 retiree's having been employed in a
community property state.
(c) "Eligible under age 65 retiree" means a resident or nonresident individual, regardless of
whether that individual is retired, who:
(i) is younger than 65 years of age;
(ii) was born on or before December 31, 1952;
(iii) has eligible retirement income for the taxable year for which a tax credit is claimed under
this section; and
(iv) has state taxable income under this part.
1185
{(b)
}
(d)
"Head of household filing status" is as defined in Section
59-10-1206.1
.
1186
{
(c)
}
(e)
"Joint filing status" is as defined in Section
59-10-1206.1
.
1187
{
(d)
}
(f)
"Married filing separately status" means a married individual who:
1188
(i) does not file a single return jointly with that individual's spouse; and
1189
(ii) files a single return.
1190
{
(e)
}
(g)
"Modified adjusted gross income" means the sum of an eligible
age 65 or older
retiree's
or eligible under age 65 retiree's
:
1191
(i) adjusted gross income for the taxable year for which
{
the eligible retiree claims
}
a tax
1192
credit
is claimed
under this section; and
1193
(ii) any interest income that is not included in adjusted gross income for the taxable
1194
year described in Subsection (1)
{
(e)
}
(g)
(i).
1195
{(f)
}
(h)
"Single filing status" means a single individual who files a single return.
1196
(2) Except as provided in Section
59-10-1206.9
and subject to Subsections (3)
{
and
(4)
}
through (6)
,
1197
for taxable years beginning on or after January 1, 2008
{
,
}
:
(a)
each eligible
age 65 or older
retiree may claim a
1198
nonrefundable tax credit of
{
$600
}
$450
against taxes otherwise due under this part
{
.
}
; or
(b) each eligible under age 65 retiree may claim a nonrefundable tax credit against taxes
otherwise due under this part in an amount equal to the lesser of:
(i) $288; or
(ii) the product of:
(A) the eligible under age 65 retiree's eligible retirement income for the taxable year for which the
eligible under age 65 retiree claims a tax credit under this section; and
(B) 6%.
1199
(3)
{
An eligible retiree may not carry forward or carry back a
}
A
tax credit under this
1200
section
may not be carried forward or carried back
.
1201
(4) The sum of the tax credits allowed by Subsection (2)
(a)
claimed on one return filed
1202
under this part shall be reduced by
{
$.04
}
$.025
for each dollar by which an eligible
age 65 or
older
retiree's modified
1203
adjusted gross income exceeds:
1204
(a) for an eligible
age 65 or older
retiree who has a married filing separately status, $16,000;
1205
(b) for an eligible
age 65 or older
retiree who has a single filing status, $25,000; or
1206
(c) for an eligible
age 65 or older
retiree who has a head of household filing status or a joint
filing
1207
status, $32,000.
(5) The sum of the tax credits allowed by Subsection (2)(b) claimed on one return filed under
this part shall be reduced by $.025 for each dollar by which an eligible under age 65 retiree's modified
adjusted gross income exceeds:
(a) for an eligible under age 65 retiree who has a married filing separately status, $16,000;
(b) for an eligible under age 65 retiree who has a single filing status, $25,000; or
(c) for an eligible under age 65 retiree who has a head of household filing status or a joint filing
status, $32,000.
(6) For purposes of determining the ownership of items of retirement income under this section,
common law doctrine shall be applied in all cases even though some items of retirement income may
have originated from service or investments in a community property state.
23. Page
160, Lines 4951 through 4953
:
4951
Section 37. Effective dates
-- Retrospective operation
.
4952
(1) Except as provided in Subsections (2) through
{
(7)
}
(9)
, this bill takes effect on January
4953
1, 2008.
24. Page
161, Lines 4964 through 4975
:
4964
{(d) Section
59-10-1014
;
}
4965
{(e)
}
(d)
Section
59-10-1202
; and
4966
{(f)
}
(e)
Section
59-10-1203
.
4967
(6) The enactments of the following take effect for taxable years beginning on or after
4968
January 1, 2008:
4969
{(a) Section
59-10-1106
;
}
4970
{(b)
}
(a)
Section
59-10-1206.1
;
4971
{(c)
}
(b)
Section
59-10-1206.2
; and
4972
{(d)
}
(c)
Section
59-10-1206.9
.
4973
(7) The repeal and reenactment of Section 59-7-614
:
(a)
takes effect
on April 30, 2007; and
(b) has retrospective operation
for taxable years
4974
beginning on or after January 1,
{
2008
}
2007
.
(8) The amendments to Section 59-10-1014:
(a) take effect on April 30, 2007; and
(b) have retrospective operation for taxable years beginning on or after January 1, 2007.
(9) The enactment of Section 59-10-1106:
(a) takes effect on April 30, 2007; and
(b) has retrospective operation for taxable years beginning on or after January 1, 2007.
25. Page
161, Lines 4977 through 4979
:
4977
publication, the Office of Legislative Research and General Counsel shall replace the reference
4978
in Subsection
26-9-4
(5)(a)(i)(A) from "
{
by
}
this bill" to the bill's designated chapter and section
If this S.B. 223 and H.B. 27, Sales and Use Tax Modifications, both pass, it is the intent of the
Legislature that the Office of Legislative Research and General Counsel, in preparing the Utah code
database for publication, as part of merging the tax rate changes enacted by this S.B. 223, modify
Section 59-12-103 that takes effect on January 1, 2008, to:
(1) replace the tax rate of 2.75% in Subsection 59-12-103(2)(c)(i) with 1.75%; and
(2) replace the tax rate of 2.75% in Subsection 59-12-103(2)(d)(i)(C) with 1.75%.
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