H.B. 133

1

EARNED INCOME TAX CREDIT
2 2009 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Brian S. King
5 Senate Sponsor: ____________
6
7 LONG TITLE
8 General Description:
9 This bill amends the Refundable Tax Credit Act to enact a refundable earned income
10 tax credit.
11 Highlighted Provisions:
12 This bill:
13 . defines terms;
14 . enacts a refundable earned income tax credit; and
15 . provides that the tax credit is subject to apportionment for a nonresident individual
16 or part-year resident individual.
17 Monies Appropriated in this Bill:
18 None
19 Other Special Clauses:
20 This bill has retrospective operation for a taxable year beginning on or after January 1,
21 2009.
22 Utah Code Sections Affected:
23 ENACTS:
24 59-10-1102.1, Utah Code Annotated 1953
25 59-10-1108, Utah Code Annotated 1953
26
27 Be it enacted by the Legislature of the state of Utah:

28 Section 1. Section 59-10-1102.1 is enacted to read:
29 59-10-1102.1. Apportionment of tax credit.
30 A nonresident individual or a part-year resident individual that claims a tax credit in
31 accordance with Section 59-10-1108 may only claim an apportioned amount of the tax credit
32 equal to:
33 (1) for a nonresident individual, the product of:
34 (a) the state income tax percentage for the nonresident individual; and
35 (b) the amount of the tax credit that the nonresident individual would have been
36 allowed to claim but for the apportionment requirements of this section; or
37 (2) for a part-year resident individual, the product of:
38 (a) the state income tax percentage for the part-year resident individual; and
39 (b) the amount of the tax credit that the part-year resident individual would have been
40 allowed to claim but for the apportionment requirements of this section.
41 Section 2. Section 59-10-1108 is enacted to read:
42 59-10-1108. Refundable earned income tax credit.
43 (1) As used in this section, "federal earned income tax credit" means the amount of the
44 federal earned income tax credit a claimant is allowed:
45 (a) in accordance with Section 32, Internal Revenue Code;
46 (b) for the taxable year; and
47 (c) on the claimant's federal individual income tax return.
48 (2) Except as provided in Section 59-10-1102.1 and subject to Subsections (3) and (4),
49 a claimant may claim a refundable tax credit equal to 10% of the federal earned income tax
50 credit.
51 (3) For purposes of this section, if a husband and wife file a single return jointly, the
52 husband and wife are considered to be one claimant.
53 (4) A claimant may not carry forward or carry back a tax credit provided for under this
54 section.
55 Section 3. Retrospective operation.
56 This bill has retrospective operation for a taxable year beginning on or after January 1,
57 2009.

Legislative Review Note
as of 1-27-09 12:16 PM

Office of Legislative Research and General Counsel