759-7-62559-10-10410Tax Credit Modifications2026 GENERAL SESSIONSTATE OF UTAHChief Sponsor: Brady BrammerHouse Sponsor: LONG TITLEGeneral Description:This bill modifies income tax credits for donations to the Carson Smith Opportunity Scholarship Program.Highlighted Provisions:This bill:allows claimants for the nonrefundable corporate and individual income tax credits for donations to the Carson Smith Opportunity Scholarship Program to:claim any portion of the tax credit amount listed on the tax credit certificate for a taxable year; andcarry forward or carry back the amount of the tax credit that is unclaimed; andmakes technical changes.Money Appropriated in this Bill:NoneOther Special Clauses:This bill provides retrospective operation.Utah Code Sections Affected:AMENDS:59-7-625, as last amended by Laws of Utah 2024, Chapter 46659-10-1041, as last amended by Laws of Utah 2024, Chapter 466Be it enacted by the Legislature of the state of Utah:

Section 1. Section 59-7-625 is amended to read:59-7-625. Nonrefundable tax credit for a donation to the Carson Smith Opportunity Scholarship Program.(1)A taxpayer that makes a donation to the Carson Smith Opportunity Scholarship Program established in Section 53E-7-402 may claim a nonrefundable tax credit equal to 100%any portion of the amount stated on a tax credit certificate issued in accordance with Section 53E-7-407.(2)If theany amount of a tax credit listed on the tax credit certificate exceeds a taxpayer's liability under this chapteris unclaimed for a taxable year, the taxpayer:(a)may carry forward the unclaimed amount of the tax credit exceeding the liability for a period that does not exceed the next three taxable years; and(b)may carry back the unclaimed amount of the tax credit that exceeds the taxpayer's tax liability to the previous taxable year.

Section 2. Section 59-10-1041 is amended to read:59-10-1041. Nonrefundable tax credit for a donation to the Carson Smith Opportunity Scholarship Program.(1)Except as provided in Subsection (3), a claimant, estate, or trust that makes a donation to the Carson Smith Opportunity Scholarship Program established in Section 53E-7-402 may claim a nonrefundable tax credit equal to 100%any portion of the amount stated on a tax credit certificate issued in accordance with Section 53E-7-407.(2)If theany amount of a tax credit listed on the tax credit certificate exceeds a claimant's, estate's, or trust's tax liability under this chapter is unclaimed for a taxable year, the claimant, estate, or trust:(a)may carry forward the unclaimed amount of the tax credit exceeding the liability for a period that does not exceed the next three taxable years; and(b)may carry back the unclaimed amount of the tax credit that exceeds the claimant's, estate's, or trust's tax liability to the previous taxable year.(3)A claimant, estate, or trust may not claim a credit described in Subsection (1) to the extent the claimant, estate, or trust claims a donation described in Subsection (1) as an itemized deduction on the claimant's, estate's, or trust's federal individual income tax return for that taxable year.

Section 3. Effective Date.This bill takes effect on May 6, 2026.

Section 4. Retrospective operation.This bill has retrospective operation for a taxable year beginning on or after January 1, 2026.

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