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S.B. 246

             1     

INFORMATION TECHNOLOGY TRAINING

             2     
INCENTIVE PROGRAM

             3     
2001 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: David H. Steele

             6      This act requires the Department of Workforce Services to establish an employer assistance
             7      program to encourage employers to provide certain of their employees with continuing
             8      information technology training. The act allows the employer to claim a tax credit of up to
             9      $1,500 per employee for the cost of providing the continuing information technology training
             10      in a program identified and certified to the Utah State Tax Commission by the Department
             11      of Workforce Services. The act also allows an employer to claim a tax credit of $5,000 for
             12      having an employee participate in the Partners in Education Program. The act has
             13      retrospective operation to January 1, 2001.
             14      This act affects sections of Utah Code Annotated 1953 as follows:
             15      ENACTS:
             16          35A-5-203, Utah Code Annotated 1953
             17          59-7-614, Utah Code Annotated 1953
             18          59-10-133, Utah Code Annotated 1953
             19      Be it enacted by the Legislature of the state of Utah:
             20          Section 1. Section 35A-5-203 is enacted to read:
             21          35A-5-203. Technology training assistance program.
             22          (1) The Department of Workforce Services shall establish an employer assistance program
             23      to encourage employers in the state to:
             24          (a) provide certain of their employees with continuing information technology skills
             25      training in the following areas of technology skills and occupations that are in high demand, in
             26      short supply, and critical to economic development in the state:
             27          (i) network engineering;


             28          (ii) network administration;
             29          (iii) systems engineering;
             30          (iv) systems administration;
             31          (v) database administration;
             32          (vi) electrical engineering;
             33          (vii) software development; and
             34          (viii) software programming; and
             35          (b) participate in a Partners in Education Program to help alleviate the shortage of
             36      information technology instructors in public and higher education by allowing competent,
             37      knowledgeable employees to teach information technology courses in either or both education
             38      systems.
             39          (2) (a) The department shall identify and certify to the Utah State Tax Commission
             40      technology skills training programs in the areas identified in Subsections (1)(a)(i) through (viii)
             41      for the purpose of qualifying for the tax credit offered under Section 59-7-614 .
             42          (b) The technology skills training programs referred to in Subsection (2)(a) must be
             43      provided by an accredited college, university, private career school, or other postsecondary
             44      educational institution to qualify for the tax credit.
             45          (3) (a) The department, in consultation with the State Board of Education and State Board
             46      of Regents, shall identify and certify to the Utah State Tax Commission the courses to be taught
             47      under the Partners in Education Program for the purpose of qualifying for the tax credit offered
             48      under Section 59-7-614 .
             49          (b) The courses must be taught in a public secondary school or an institution within the
             50      state system of higher education.
             51          Section 2. Section 59-7-614 is enacted to read:
             52          59-7-614. Technology training assistance credit.
             53          (1) (a) For taxable years beginning on or after January 1, 2001, but beginning before
             54      December 31, 2007, a taxpayer meeting the requirements of Subsections (1)(a) and (2)(a) shall
             55      qualify for the following nonrefundable credit for expenses incurred by the taxpayer for providing
             56      information technology skills training to an employee under Section 35A-5-203 :
             57          (i) the amount of the credit is the amount actually spent by the taxpayer during the taxable
             58      year for the cost of the training under Section 35A-5-203 , but not more than $1,500 per employee;


             59      and
             60          (ii) the taxpayer may not claim the credit for more than 20 employees, for a maximum
             61      credit in any one tax year of $30,000.
             62          (b) (i) For taxable years beginning on or after January 1, 2001, but beginning before
             63      December 31, 2007, a taxpayer that has an employee participate in the Partners in Education
             64      Program established under Section 35A-5-203 and meets the requirement of Subsection (2)(a) may
             65      claim a tax credit of $5,000 for each complete term of teaching performed by the employee during
             66      the tax year.
             67          (ii) For purposes of Subsection (1)(b)(i), "term" means a semester as applied to teaching
             68      within the state system of higher education and an equivalent time period as applied to teaching
             69      at a secondary school within the state system of public education.
             70          (2) (a) To receive a tax credit under this section, a taxpayer must apply to the Department
             71      of Workforce Services, on a form prescribed by the department, on or before January 15 following
             72      the calendar year in which the credit is claimed.
             73          (b) On or before February 15, the Department of Workforce Services shall review and
             74      determine the amount of the credit for each taxpayer and issue a certificate to each qualifying
             75      taxpayer stating the amount of the credit.
             76          (c) (i) The Department of Workforce Services may not certify tax credits under this section
             77      in any calendar year exceeding $5,000,000.
             78          (ii) If qualifying applications exceed $5,000,000 in any calendar year, the department shall
             79      proportionately reduce the amount of the credit allowed each taxpayer.
             80          (3) If the allowable tax credit under this section exceeds the taxpayer's tax liability under
             81      this chapter for a taxable year, the amount of the credit exceeding the liability may be carried
             82      forward for a period not to exceed the next five taxable years.
             83          Section 3. Section 59-10-133 is enacted to read:
             84          59-10-133. Technology training assistance credit.
             85          (1) (a) For taxable years beginning on or after January 1, 2001, but beginning before
             86      December 31, 2007, a taxpayer meeting the requirements of Subsections (1)(a) and (2)(a) shall
             87      qualify for the following nonrefundable credit for expenses incurred by the taxpayer for providing
             88      information technology skills training to an employee under Section 35A-5-203 :
             89          (i) the amount of the credit is the amount actually spent by the taxpayer during the taxable


             90      year for the cost of the training under Section 35A-5-203 , but not more than $1,500 per employee;
             91      and
             92          (ii) the taxpayer may not claim the credit for more than 20 employees, for a maximum
             93      credit in any one tax year of $30,000.
             94          (b) (i) For taxable years beginning on or after January 1, 2001, but beginning before
             95      December 31, 2007, a taxpayer that has an employee participate in the Partners in Education
             96      Program established under Section 35A-5-203 and meets the requirement of Subsection (2)(a) may
             97      claim a tax credit of $5,000 for each complete term of teaching performed by the employee during
             98      the tax year.
             99          (ii) For purposes of Subsection (1)(b)(i), "term" means a semester as applied to teaching
             100      within the state system of higher education and an equivalent time period as applied to teaching
             101      at a secondary school within the state system of public education.
             102          (2) (a) To receive a tax credit under this section, a taxpayer must apply to the Department
             103      of Workforce Services, on a form prescribed by the department, on or before January 15 following
             104      the calendar year in which the credit is claimed.
             105          (b) On or before February 15, the Department of Workforce Services shall review and
             106      determine the amount of the credit for each taxpayer and issue a certificate to each qualifying
             107      taxpayer stating the amount of the credit.
             108          (c) (i) The Department of Workforce Services may not certify tax credits under this section
             109      in any calendar year exceeding $5,000,000.
             110          (ii) If qualifying applications exceed $5,000,000 in any calendar year, the department shall
             111      proportionately reduce the amount of the credit allowed each taxpayer.
             112          (3) If the allowable tax credit under this section exceeds the taxpayer's tax liability under
             113      this chapter for a taxable year, the amount of the credit exceeding the liability may be carried
             114      forward for a period not to exceed the next five taxable years.
             115          Section 4. Retrospective operation.
             116          This act has retrospective operation to January 1, 2001.





Legislative Review Note
    as of 2-14-01 3:58 PM


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

Office of Legislative Research and General Counsel


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