First Substitute H.B. 299

This document includes House Committee Amendments incorporated into the bill on Fri, Feb 24, 2012 at 12:14 PM by jeyring. -->

Representative John Dougall proposes the following substitute bill:

1 TAX REVISIONS
2 2012 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: John Dougall
5 Senate Sponsor: ____________
6
7 LONG TITLE
8 General Description:
9 This bill creates a tax credit for higher education tuition and fees.
10 Highlighted Provisions:
11 This bill:
12 . allows a claimant to claim a nonrefundable tax credit for tuition and mandatory fees
13 for the claimant's enrollment in an institution within the state system of higher
14 education;
15 . limits the nonrefundable tax credit to 5% of the claimant's tax liability before tax
16 credits; and
17 . allows the claimant to carry forward the nonrefundable tax credit if the amount of
18 the tax credit exceeds 5% of the claimant's tax liability before tax credits.
19 Money Appropriated in this Bill:
20 None
21 Other Special Clauses:
22 This bill has retrospective operation for a taxable year beginning on or after January 1,
23 2012.
24 Utah Code Sections Affected:
25 ENACTS:

26 59-10-1029, Utah Code Annotated 1953
27
28 Be it enacted by the Legislature of the state of Utah:
29 Section 1. Section 59-10-1029 is enacted to read:
30 59-10-1029. Nonrefundable higher education tuition credit.
31 (1) As used in this section:
32 (a) "Eligible institution" means an institution within the state system of higher
33 education specified in Section 53B-1-102 .
34 (b) "Qualified tuition expenses" mean tuition and mandatory fees, less:
35 (i) refunds; and
36 (ii) amounts received from scholarships, grants, stipends, or similar forms of financial
37 aid that are not subject to repayment.
38 (2) (a) For taxable years beginning on or after January 1, 2012, a claimant may claim a
39 nonrefundable tax credit equal to the amount of the qualified tuition expenses paid:
40 (i) (A) by the claimant; or
41 (B) by another person on behalf of the claimant;
42 (ii) in the taxable year; and
43 (iii) for the claimant's enrollment at an eligible institution.
44 (b) The amount of the nonrefundable tax credit claimed under Subsection (2)(a) may
45 not exceed 5% of the claimant's tax liability before tax credits under this chapter.
46 (c) If the nonrefundable tax credit allowed under this section exceeds 5% of the
47 claimant's tax liability before tax credits under this chapter, the claimant may carry forward the
48 excess amount to future taxable years.
49 (d) H. [ The sum of the nonrefundable tax credit claimed under Subsection (2)(a) and any
50 excess amount carried forward pursuant to Subsection (2)(c) may not exceed 5% of the
51 claimant's tax liability before tax credits under this chapter. ]
51a (d) Notwithstanding Subsections (2)(a) and (c), a claimant may not claim for a
51b taxable year a total amount that exceeds 5% of the claimant's tax liability before credits under
51c this chapter from:
51d (i) the amount of a nonrefundable tax credit claimed under
51e Subsection (2)(a); and
51f (ii) an amount carried forward pursuant to Subsection (2)(c). .H
52 (e) A claimant who qualifies for a nonrefundable tax credit under this section shall, at
53 the request of the commission:
54 (i) identify to the commission the eligible institution or institutions where the claimant
55 was enrolled; and
56 (ii) provide written authorization for the eligible institution to release to the

57 commission the claimant's:
58 (A) enrollment dates;
59 (B) tuition and mandatory fees paid; and
60 (C) scholarships, grants, stipends, or similar forms of financial aid received but not
61 subject to repayment.
62 (3) Upon request of the commission, the eligible institution shall release the
63 information specified in Subsection (2)(e)(ii) to the commission for a claimant that claims a tax
64 credit under this section.
65 (4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
66 commission may make rules that:
67 (a) establish procedures for a claimant to claim a nonrefundable tax credit under this
68 section; and
69 (b) define "mandatory fees" and "scholarships, grants, stipends, or similar forms of
70 financial aid received but not subject to repayment" for the purposes of this section.
71 Section 2. Retrospective operation.
72 This bill has retrospective operation for a taxable year beginning on or after January 1,
73 2012.