H.B. 102

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INCOME TAX CREDIT FOR EDUCATIONAL CHOICE
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Evan L. Olsen
5 AN ACT RELATING TO INCOME TAX; PROVIDING A TAX CREDIT FOR TUITION
6 COSTS INCURRED IN SATISFYING THE STATE'S COMPULSORY EDUCATION LAW;
7 PROVIDING FOR AN ANNUAL REPORT ON THE NUMBER AND TOTAL DOLLAR
8 AMOUNT OF CREDITS CLAIMED; AND PROVIDING FOR RETROSPECTIVE
9 OPERATION.
10 This act affects sections of Utah Code Annotated 1953 as follows:
11 ENACTS:
12 59-10-131, Utah Code Annotated 1953
13 Be it enacted by the Legislature of the state of Utah:
14 Section 1. Section 59-10-131 is enacted to read:
15 59-10-131. Education tax credit.
16 (1) (a) For the tax year beginning January 1, 1997, and for each year thereafter, a taxpayer
17 may claim as a credit against the tax otherwise due under this chapter an amount not to exceed
18 $100 for each dependent in grades kindergarten through 12, for tuition costs in attending an
19 elementary or secondary school in the state.
20 (b) As used in this section:
21 (i) "School" means a public, private, or home school, attendance at which satisfies the
22 state's compulsory education law and which is not operated for profit.
23 (ii) "Tuition" means any charges for the expenses of personnel, buildings, equipment and
24 materials, other than textbooks, and other expenses of elementary and secondary schools which
25 relate to the teaching only of those subjects legally and commonly taught in the public and
26 secondary schools in this state. It includes instruction provided by the taxpayer or the taxpayer's
27 spouse in a home school. It does not include charges related to:

1 (A) the teaching of religious tenets, doctrine, or worship, the purpose of which is to
2 inculcate those tenets, doctrines, or worship; and
3 (B) extracurricular activities, including sporting events, musical or dramatic events, speech
4 activities, driver's education, or programs of a similar nature.
5 (2) Taxpayers filing a joint return must jointly request the tax credit.
6 (3) The tax credit provided for in Subsection (1)(a) is a partial offset against the state
7 monies that would otherwise be required to educate private and home school students in the public
8 schools.
9 (4) Prior to each annual legislative session, the State Tax Commission shall report to the
10 Legislature on the number and total dollar amount of credits approved under this section for the
11 previous tax year to enable the Legislature to determine if the credit limit should be modified.
12 Section 2. Retrospective operation.
13 This act has retrospective operation for taxable years beginning on or after January 1,1997.




Legislative Review Note
as of 1-29-97 8:06 AM

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

Office of Legislative Research and General Counsel

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