H.B. 184

1

INCOME TAX CREDIT FOR A DISABLED
2 DEPENDENT
3 2009 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: John Dougall
6 Senate Sponsor: Wayne L. Niederhauser
7
8 LONG TITLE
9 General Description:
10 This bill amends the Nonrefundable Tax Credit Act to allow a tax credit for a
11 dependent adult with a disability or dependent child with a disability as part of the
12 taxpayer tax credit.
13 Highlighted Provisions:
14 This bill:
15 . defines terms;
16 . for a taxable year beginning on or after January 1, 2009, allows a tax credit for a
17 dependent adult with a disability or dependent child with a disability as part of the
18 taxpayer tax credit; and
19 . makes technical changes.
20 Monies Appropriated in this Bill:
21 None
22 Other Special Clauses:
23 This bill has retrospective operation for a taxable year beginning on or after January 1,
24 2009.
25 Utah Code Sections Affected:
26 AMENDS:
27 59-10-1018, as renumbered and amended by Laws of Utah 2008, Chapter 389

28
29 Be it enacted by the Legislature of the state of Utah:
30 Section 1. Section 59-10-1018 is amended to read:
31 59-10-1018. Definitions -- Nonrefundable taxpayer tax credits.
32 (1) As used in this section:
33 (a) "Dependent adult with a disability" means an individual:
34 (i) with respect to whom a claimant makes a deduction as allowed as a personal
35 exemption deduction on the claimant's federal individual income tax return for the taxable
36 year; and
37 (ii) is:
38 (A) 18 years of age or older;
39 (B) eligible for services under Title 62A, Chapter 5, Services for People with
40 Disabilities; and
41 (C) not enrolled in:
42 (I) an education program for students with disabilities that is authorized under Section
43 53A-15-301 ; or
44 (II) a school established under Title 53A, Chapter 25, Schools for the Deaf and Blind.
45 (b) "Dependent child with a disability" means an individual 21 years of age or younger:
46 (i) with respect to whom a claimant makes a deduction as allowed as a personal
47 exemption deduction on the claimant's federal individual income tax return for the taxable
48 year; and
49 (ii) who is:
50 (A) (I) diagnosed by a school district representative under rules adopted by the State
51 Board of Education as having a disability classified as:
52 (Aa) autism;
53 (Bb) deafness;
54 (Cc) preschool developmental delay;
55 (Dd) dual sensory impairment;
56 (Ee) hearing impairment;
57 (Ff) intellectual disability;
58 (Gg) multidisability;

59 (Hh) orthopedic impairment;
60 (Ii) other health impairment;
61 (Jj) traumatic brain injury; or
62 (Kk) visual impairment;
63 (II) not receiving residential services from:
64 (Aa) the Division of Services for People with Disabilities created under Section
65 62A-5-102 ; or
66 (Bb) a school established under Title 53A, Chapter 25, Schools for the Deaf and Blind;
67 and
68 (III) enrolled in:
69 (Aa) an education program for students with disabilities that is authorized under
70 Section 53A-15-301 ; or
71 (Bb) a school established under Title 53A, Chapter 25, Schools for the Deaf and Blind;
72 or
73 (B) identified under guidelines of the Department of Health as qualified for:
74 (I) Early Intervention; or
75 (II) Infant Development Services.
76 [(a)] (c) "Head of household filing status" means a head of household, as defined in
77 Section 2(b), Internal Revenue Code, who files a single federal individual income tax return for
78 the taxable year.
79 [(b)] (d) "Joint filing status" means:
80 (i) a husband and wife who file a single return jointly under this chapter for [a] the
81 taxable year; or
82 (ii) a surviving spouse, as defined in Section 2(a), Internal Revenue Code, who files a
83 single federal individual income tax return for the taxable year.
84 [(c)] (e) "Single filing status" means:
85 (i) a single individual who files a single federal individual income tax return for the
86 taxable year; or
87 (ii) a married individual who:
88 (A) does not file a single federal individual income tax return jointly with that married
89 individual's spouse for the taxable year; and

90 (B) files a single federal individual income tax return for the taxable year.
91 (2) Except as provided in Section 59-10-1002.2 , and subject to Subsections (3) through
92 (5), a claimant may claim a nonrefundable tax credit against taxes otherwise due under this part
93 equal to the sum of:
94 (a) (i) for a claimant that deducts the standard deduction on the claimant's federal
95 individual income tax return for the taxable year, 6% of the amount the claimant deducts as
96 allowed as the standard deduction on the claimant's federal individual income tax return for
97 that taxable year; or
98 (ii) for a claimant that itemizes deductions on the claimant's federal individual income
99 tax return for the taxable year, the product of:
100 (A) the difference between:
101 (I) the amount the claimant deducts as allowed as an itemized deduction on the
102 claimant's federal individual income tax return for that taxable year; and
103 (II) any amount of state or local income taxes the claimant deducts as allowed as an
104 itemized deduction on the claimant's federal individual income tax return for that taxable year;
105 and
106 (B) 6%; and
107 (b) the sum of:
108 [(b)] (i) the product of:
109 [(i)] (A) 75% of the total amount the claimant deducts as allowed as a personal
110 exemption deduction, including the amount the claimant deducts as allowed as a personal
111 exemption deduction with respect to any dependent adult with a disability or dependent child
112 with a disability, on the claimant's federal individual income tax return for that taxable year;
113 and
114 [(ii)] (B) 6%[.]; and
115 (ii) for a taxable year beginning on or after January 1, 2009, with respect to each
116 dependent adult with a disability or dependent child with a disability that the claimant deducts
117 as allowed as a personal exemption deduction on the claimant's federal individual income tax
118 return for that taxable year, the product of:
119 (A) 75% of the total amount the claimant deducts as allowed as a personal exemption
120 deduction on the claimant's federal individual income tax return for that taxable year with

121 respect to the dependent child with a disability or dependent adult with a disability; and
122 (B) 6%.
123 (3) A claimant may not carry forward or carry back a tax credit under this section.
124 (4) The tax credit allowed by Subsection (2) shall be reduced by $.013 for each dollar
125 by which a claimant's state taxable income exceeds:
126 (a) for a claimant who has a single filing status, $12,000;
127 (b) for a claimant who has a head of household filing status, $18,000; or
128 (c) for a claimant who has a joint filing status, $24,000.
129 (5) (a) For taxable years beginning on or after January 1, 2009, the commission shall
130 increase or decrease the following dollar amounts by a percentage equal to the percentage
131 difference between the consumer price index for the preceding calendar year and the consumer
132 price index for calendar year 2007:
133 (i) the dollar amount listed in Subsection (4)(a); and
134 (ii) the dollar amount listed in Subsection (4)(b).
135 (b) After the commission increases or decreases the dollar amounts listed in Subsection
136 (5)(a), the commission shall round those dollar amounts listed in Subsection (5)(a) to the
137 nearest whole dollar.
138 (c) After the commission rounds the dollar amounts as required by Subsection (5)(b),
139 the commission shall increase or decrease the dollar amount listed in Subsection (4)(c) so that
140 the dollar amount listed in Subsection (4)(c) is equal to the product of:
141 (i) the dollar amount listed in Subsection (4)(a); and
142 (ii) two.
143 (d) For purposes of Subsection (5)(a), the commission shall calculate the consumer
144 price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
145 Section 2. Retrospective operation.
146 This bill has retrospective operation for a taxable year beginning on or after January 1,
147 2009.

Legislative Review Note
as of 2-11-09 8:44 AM

Office of Legislative Research and General Counsel