Second 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.
8 This act affects sections of Utah Code Annotated 1953 as follows:
9 ENACTS:
10 59-10-108.1, Utah Code Annotated 1953
11 Be it enacted by the Legislature of the state of Utah:
12 Section 1. Section 59-10-108.1 is enacted to read:
13 59-10-108.1. Tax credit for at-home parent or guardian.
14 (1) As used in this section, "at-home parent" means a parent or guardian who:
15 (a) stays at home and cares for one or more of his or her own children who are not yet age
16 six as of the December 31 of the taxable year for which the credit is claimed;
17 (b) claims the child or children as dependents on a state income tax return for the taxable
18 year for which the credit is claimed; and
19 (c) for whom all of the income for all federal Forms W-2 for the taxable year for which
20 the credit is claimed show an income of $3,000 or less.
21 (2) For taxable years beginning on or after January 1, 2000, there is allowed for each return
22 filed when one or more of the filers is an at-home parent, a nonrefundable credit against the
23 income tax due as provided in the following table:
24 If the state taxable income is: The tax credit is:
25 Less than or equal $500 per child

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

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