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S.B. 62

This document includes Senate Committee Amendments incorporated into the bill on Mon, Feb 5, 2007 at 5:49 PM by rday. -->             


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Senate Committee Amendments 2-5-2007 rd/dsl
1
    
COLLEGE AND UNIVERSITY TUITION TAX

             2     
CREDITS

             3     
2007 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Gregory S. Bell

             6     
House Sponsor: Kory M. Holdaway

             7     

             8      LONG TITLE
             9      General Description:
             10          This bill provides a tax credit for higher education students.
             11      Highlighted Provisions:
             12          This bill:
             13          .    provides a refundable tax credit for higher education tuition and mandatory fees, up
             14      to a limited amount;
             15          .    establishes definitions, including eligibility for the credit;
             16      S. [     .    requires the State Tax Commission to verify certain eligibility information with
             17      institutions of higher education;
] .S
and
             18          .    gives rulemaking authority to the State Tax Commission.
             19      Monies Appropriated in this Bill:
             20          None
             21      Other Special Clauses:
             22          None
             23      Utah Code Sections Affected:
             24      ENACTS:
             25          59-10-1106, Utah Code Annotated 1953
             26     

             27      Be it enacted by the Legislature of the state of Utah:



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Senate Committee Amendments 2-5-2007 rd/dsl
             28
         Section 1. Section 59-10-1106 is enacted to read:
             29          59-10-1106. Refundable higher education tuition credit.
             30          (1) As used in this section:
             31          (a) "Claimant's income" means the claimant's federal adjusted gross income plus the
             32      additions to income specified in Subsection 59-10-1204 (1).
             33          (b) "Eligible institution" means an institution within the state system of higher
             34      education specified in Subsections 53B-1-102 (1)(b) through (j).
             35          (c) "Eligible student" means a higher education student who:
             36          (i) is enrolled at and attends an eligible institution;
             37          (ii) is legally claimed as a personal exemption on the federal and state individual
             38      income tax return of a claimant who has claimant's income of $30,000 or less S. , regardless of
             38a      filing status .S ;
             39          (iii) is not also a public education student while attending an eligible institution; and
             40          (iv) is not in default on any higher education student loan.
             41          (d) "Qualified higher education expenses" means tuition and mandatory fees paid in a
             42      taxable year by an eligible student or by the claimant on behalf of an eligible student, less any
             43      refunds, scholarships, and other forms of financial aid received but not subject to repayment.
             44          (2) (a) For taxable years beginning on or after January 1, 2008, a claimant may claim a
             45      refundable tax credit:
             46          (i) as provided in this section;
             47          (ii) against taxes otherwise due under this chapter; and
             48          (iii) in an amount equal to 50% of qualified higher education expenses incurred for an
             49      eligible student in the taxable year, up to a maximum of $300.
             50          (b) The refundable tax credit under this section may only be claimed:
             51          (i) by a claimant who legally claims the eligible student as a personal exemption on the
             52      claimant's federal and state individual income tax return;
             53          (ii) if the claimant identifies to the commission the eligible institution or institutions
             54      attended by the eligible student;
             55          (iii) if the eligible student provides written authorization for the eligible institution to
             56      release the eligible student's enrollment, attendance, and applicable qualified higher education
             57      expense information to the commission; and
             58          (iv) to the extent that the credit under this section and any federal education tax credits



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Senate Committee Amendments 2-5-2007 rd/dsl
             59
     claimed for the eligible student do not exceed the amount of qualified higher education
             60      expenses.
             61          (c) The refundable tax credit under this section:
             62          (i) may not be carried forward or carried back; and
             63          (ii) may be claimed for each eligible student legally claimed as a personal exemption
             64      on the claimant's federal and state individual income tax return.
             65          (3) (a) In accordance with rules prescribed by the commission under Subsection (4),
             66      the commission shall make a refund to a claimant that legally claims a tax credit under this
             67      section if the amount of the tax credit exceeds the claimant's tax liability under this chapter.
             68          (b) S. [ (i) Prior to issuing a refund for a refundable tax credit as provided in Subsection
             69      (3)(a), the commission shall, at a minimum, verify enrollment and qualified higher education
             70      expense information with the eligible institution.
             71          (ii)
] .S
Upon request of the commission, the eligible institution shall release S. [ the
             71a      requested
             72      information, including
] .S
applicable enrollment and qualified higher education expense
             73      information S. [ , ] .S to the commission for an eligible student.
             74          (4) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             75      commission shall make rules to:
             76          (a) establish procedures for a claimant to claim a refundable tax credit under this
             77      section, including procedures and documentation that minimize the potential for fraud; and
             78          (b) establish procedures for issuing a refund as required under this section.





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