Download Zipped Introduced WP 9 HB0138.ZIP 8,261 Bytes
[Status][Bill Documents][Fiscal Note][Bills Directory]

H.B. 138

             1     

INDIVIDUAL INCOME TAX AND CORPORATE

             2     
FRANCHISE AND INCOME TAX CREDITS

             3     
FOR QUALIFYING EDUCATION EXPENSES

             4     
2001 GENERAL SESSION

             5     
STATE OF UTAH

             6     
Sponsor: John E. Swallow

             7      This act modifies the Individual Income Tax Act and Corporate Franchise and Income Taxes
             8      to provide nonrefundable credits for qualifying education expenses paid by a taxpayer
             9      during the taxable year. This act has retrospective operation for taxable years beginning on
             10      or after January 1, 2001.
             11      This act affects sections of Utah Code Annotated 1953 as follows:
             12      ENACTS:
             13          59-7-614, Utah Code Annotated 1953
             14          59-10-133, Utah Code Annotated 1953
             15      Be it enacted by the Legislature of the state of Utah:
             16          Section 1. Section 59-7-614 is enacted to read:
             17          59-7-614. Nonrefundable credit for qualifying education expenses -- Definitions.
             18          (1) As used in this section:
             19          (a) "Qualifying education expenses" means the amount a taxpayer pays during a taxable
             20      year on behalf of a qualifying student:
             21          (i) for the following expenses:
             22          (A) tuition paid to the school at which the qualifying student attends;
             23          (B) a textbook that is required for class instruction at the school at which the qualifying
             24      student attends; or
             25          (C) a qualifying school fee; and
             26          (ii) if on behalf of the qualifying student the taxpayer pays a total of $200 or more:
             27          (A) for an expense described in Subsection (1)(a)(i);


             28          (B) during the taxable year; and
             29          (C) for which the taxpayer does not receive reimbursement from any other person.
             30          (b) (i) "Qualifying school fee" means:
             31          (A) except as provided in Subsection (1)(b)(ii), a fee paid to the school at which the
             32      qualifying student attends that is directly related to the school's or school district's:
             33          (I) educational activities; or
             34          (II) educational functions.
             35          (ii) "Qualifying school fee" does not include amounts paid to participate in:
             36          (A) a field trip;
             37          (B) a trip; or
             38          (C) an activity similar to Subsection (1)(b)(ii)(A) or (B).
             39          (c) "Qualifying student" means an individual who is:
             40          (i) under 21 years of age on the last day of the taxable year for which the credit provided
             41      for in this section is claimed;
             42          (ii) born on or after September 1, 1995; and
             43          (iii) enrolled at a school as a full-time student during the taxable year for which the credit
             44      authorized by this section is claimed.
             45          (d) "School" means an elementary school or a secondary school that:
             46          (i) is a:
             47          (A) public school; or
             48          (B) private school;
             49          (ii) provides instruction for one or more grades kindergarten through 12;
             50          (iii) satisfies the requirements of Title 53A, Chapter 11, Part 1, Compulsory Education
             51      Requirements; and
             52          (iv) is not a home school.
             53          (e) "School expense certificate" means a certificate that is:
             54          (i) developed by the commission;
             55          (ii) provided to schools by the commission;
             56          (iii) issued by a school to a taxpayer who pays qualifying education expenses during the
             57      taxable year; and
             58          (iv) that states the amount of the qualifying education expenses the taxpayer pays during


             59      the taxable year.
             60          (2) For taxable years beginning on or after January 1, 2001, a taxpayer that pays qualifying
             61      education expenses during a taxable year may claim a nonrefundable credit against the taxes
             62      imposed by this chapter subject to the requirements and limitations of this section.
             63          (3) For each qualifying student on whose behalf a taxpayer pays qualifying education
             64      expenses, the credit provided for in this section is an amount equal to the lesser of:
             65          (a) the qualifying education expenses the taxpayer pays during the taxable year; or
             66          (b) $2,100.
             67          (4) The tax credit provided for in Subsection (2):
             68          (a) may be claimed only for the taxable year that the taxpayer pays the qualifying education
             69      expenses; and
             70          (b) may not be carried forward or carried back.
             71          (5) A school shall issue a school expense certificate to a taxpayer that pays qualifying
             72      education expenses if, with respect to a qualifying student, the taxpayer is the first taxpayer to:
             73          (a) request from the school the school expense certificate during a 60-day time period
             74      beginning 30 days after the last day of the calendar year during which the taxpayer paid the
             75      qualifying education expenses; and
             76          (b) provide to the school receipts for the taxpayer's qualifying education expenses.
             77          (6) A taxpayer shall attach a copy of the qualifying education expenses certificate to any
             78      return upon which the taxpayer claims a tax credit under this section.
             79          (7) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             80      commission may make rules defining the following terms:
             81          (a) "educational activities"; or
             82          (b) "educational functions."
             83          Section 2. Section 59-10-133 is enacted to read:
             84          59-10-133. Nonrefundable credit for qualifying education expenses -- Definitions.
             85          (1) As used in this section:
             86          (a) "Qualifying education expenses" means the amount a taxpayer pays during a taxable
             87      year on behalf of a qualifying student:
             88          (i) for the following expenses:
             89          (A) tuition paid to the school at which the qualifying student attends;


             90          (B) a textbook that is required for class instruction at the school at which the qualifying
             91      student attends; or
             92          (C) a qualifying school fee; and
             93          (ii) if on behalf of the qualifying student the taxpayer pays a total of $200 or more:
             94          (A) for an expense described in Subsection (1)(a)(i);
             95          (B) during the taxable year; and
             96          (C) for which the taxpayer does not receive reimbursement from any other person.
             97          (b) (i) "Qualifying school fee" means:
             98          (A) except as provided in Subsection (1)(b)(ii), a fee paid to the school at which the
             99      qualifying student attends that is directly related to the school's or school district's:
             100          (I) educational activities; or
             101          (II) educational functions.
             102          (ii) "Qualifying school fee" does not include amounts paid to participate in:
             103          (A) a field trip;
             104          (B) a trip; or
             105          (C) an activity similar to Subsection (1)(b)(ii)(A) or (B).
             106          (c) "Qualifying student" means an individual who is:
             107          (i) under 21 years of age on the last day of the taxable year for which the credit provided
             108      for in this section is claimed;
             109          (ii) born on or after September 1, 1995; and
             110          (iii) enrolled at a school as a full-time student during the taxable year for which the credit
             111      authorized by this section is claimed.
             112          (d) "School" means an elementary school or a secondary school that:
             113          (i) is a:
             114          (A) public school; or
             115          (B) private school;
             116          (ii) provides instruction for one or more grades kindergarten through 12;
             117          (iii) satisfies the requirements of Title 53A, Chapter 11, Part 1, Compulsory Education
             118      Requirements; and
             119          (iv) is not a home school.
             120          (e) "School expense certificate" means a certificate that is:


             121          (i) developed by the commission;
             122          (ii) provided to schools by the commission;
             123          (iii) issued by a school to a taxpayer who pays qualifying education expenses during the
             124      taxable year; and
             125          (iv) that states the amount of the qualifying education expenses the taxpayer pays during
             126      the taxable year.
             127          (2) For taxable years beginning on or after January 1, 2001, a taxpayer that pays qualifying
             128      education expenses during a taxable year may claim a nonrefundable credit against the taxes
             129      imposed by this chapter subject to the requirements and limitations of this section.
             130          (3) For each qualifying student on whose behalf a taxpayer pays qualifying education
             131      expenses, the credit provided for in this section is an amount equal to the lesser of:
             132          (a) the qualifying education expenses the taxpayer pays during the taxable year; or
             133          (b) $2,100.
             134          (4) The tax credit provided for in Subsection (2):
             135          (a) may be claimed only for the taxable year that the taxpayer pays the qualifying education
             136      expenses; and
             137          (b) may not be carried forward or carried back.
             138          (5) A school shall issue a school expense certificate to a taxpayer that pays qualifying
             139      education expenses if, with respect to a qualifying student, the taxpayer is the first taxpayer to:
             140          (a) request from the school the school expense certificate during a 60-day time period
             141      beginning 30 days after the last day of the calendar year during which the taxpayer paid the
             142      qualifying education expenses; and
             143          (b) provide to the school receipts for the taxpayer's qualifying education expenses.
             144          (6) A taxpayer shall attach a copy of the qualifying education expenses certificate to any
             145      return upon which the taxpayer claims a tax credit under this section.
             146          (7) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             147      commission may make rules defining the following terms:
             148          (a) "educational activities"; or
             149          (b) "educational functions."
             150          Section 3. Retrospective operation.
             151          This act has retrospective operation for taxable years beginning on or after January 1, 2001.






Legislative Review Note
    as of 2-9-01 6:22 PM


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

Office of Legislative Research and General Counsel


[Bill Documents][Bills Directory]