H.B. 258

1

INDIVIDUAL INCOME TAX CREDIT FOR
2 EMPLOYMENT-RELATED EXPENSES
3 2005 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: David Litvack
6
7 LONG TITLE
8 General Description:
9 This bill amends the Individual Income Tax Act to provide a nonrefundable tax credit
10 for certain employment-related expenses.
11 Highlighted Provisions:
12 This bill:
13 . provides definitions; and
14 . provides a nonrefundable income tax credit for certain employment-related
15 expenses for household and dependent care services.
16 Monies Appropriated in this Bill:
17 None
18 Other Special Clauses:
19 This bill takes effect for taxable years beginning on or after January 1, 2006.
20 Utah Code Sections Affected:
21 ENACTS:
22 59-10-134.2, Utah Code Annotated 1953
23
24 Be it enacted by the Legislature of the state of Utah:
25 Section 1. Section 59-10-134.2 is enacted to read:
26 59-10-134.2. Nonrefundable income tax credit for employment-related expenses
27 relating to qualifying individuals.

28 (1) As used in this section:
29 (a) "employment-related expenses" is as defined in Section 21, Internal Revenue Code;
30 and
31 (b) "qualifying individual" is as defined in Section 21, Internal Revenue Code.
32 (2) For taxable years beginning on or after January 1, 2006, a taxpayer may claim as
33 provided in this section a nonrefundable income tax credit equal to 25% of the amount the
34 taxpayer is allowed as a federal tax credit:
35 (a) for employment-related expenses to allow the taxpayer to be gainfully employed for
36 any period during the taxable year for which there are one or more qualifying individuals with
37 respect to the taxpayer; and
38 (b) in accordance with Section 21, Internal Revenue Code.
39 (3) If the amount of a tax credit claimed by a taxpayer under this section exceeds a
40 taxpayer's tax liability under this chapter for a taxable year, the amount of the tax credit
41 exceeding the liability:
42 (a) may be carried forward for a period that does not exceed the next five taxable years;
43 and
44 (b) may not be carried back to a taxable year preceding the current taxable year.
45 Section 2. Effective date.
46 This bill takes effect for taxable years beginning on or after January 1, 2006.




Legislative Review Note
as of 1-28-05 4:22 PM

Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.

Office of Legislative Research and General Counsel