! The Capitol Complex is closed to the public due to COVID-19. All meetings will be held virtually online. View procedures and guidelines (PDF) for remote public comment and virtual meeting instructions (PDF).

Download Zipped Amended WordPerfect SB0023S01.ZIP
[Introduced][Status][Bill Documents][Fiscal Note][Bills Directory]

First Substitute S.B. 23

This document includes House Committee Amendments incorporated into the bill on Wed, Feb 29, 2012 at 2:27 PM by lerror. -->

Representative Patrick Painter proposes the following substitute bill:


             1     
LIFE SCIENCE AND TECHNOLOGY TAX CREDIT

             2     
AMENDMENTS

             3     
2012 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Curtis S. Bramble

             6     
House Sponsor: Patrick Painter

             7     

             8      LONG TITLE
             9      General Description:
             10          This bill makes changes to certain tax credits.
             11      Highlighted Provisions:
             12          This bill:
             13          .    makes changes to life science and technology tax credits and related provisions; and
             14          .    makes technical changes.
             15      Money Appropriated in this Bill:
             16          None
             17      Other Special Clauses:
             18          This bill has retrospective operation for a taxable year beginning on or after January 1,
             19      2012.
             20      Utah Code Sections Affected:
             21      AMENDS:
             22          59-7-614.6, as enacted by Laws of Utah 2011, Chapter 306
             23          59-10-1025, as enacted by Laws of Utah 2011, Chapter 306
             24          59-10-1109, as enacted by Laws of Utah 2011, Chapter 306
             25          63M-1-2902, as enacted by Laws of Utah 2011, Chapter 306



Text Box

- 2 -
House Committee Amendments 2-29-2012 le/rlr
             26
         63M-1-2903, as enacted by Laws of Utah 2011, Chapter 306
             27          63M-1-2905, as enacted by Laws of Utah 2011, Chapter 306
             28          63M-1-2908, as enacted by Laws of Utah 2011, Chapter 306
             29          63M-1-2909, as enacted by Laws of Utah 2011, Chapter 306
             30          63M-1-2910, as enacted by Laws of Utah 2011, Chapter 306
             31      REPEALS:
             32          59-10-1026, as enacted by Laws of Utah 2011, Chapter 306
             33     

             34      Be it enacted by the Legislature of the state of Utah:
             35          Section 1. Section 59-7-614.6 is amended to read:
             36           59-7-614.6. Refundable tax credit for certain business entities generating state tax
             37      revenue increases.
             38          (1) As used in this section:
             39          (a) "Eligible business entity" is as defined in Section 63M-1-2902 .
             40          (b) "Eligible new state tax revenues" is as defined in Section 63M-1-2902 .
             41          [(b)] (c) "Office" means the Governor's Office of Economic Development.
             42          [(c)] (d) "Pass-through entity" is as defined in Section 59-10-1402 .
             43          [(d)] (e) "Pass-through entity taxpayer" is as defined in Section 59-10-1402 .
             44          (f) "Qualifying agreement" means an agreement under Subsection 63M-1-2908 that
             45      includes a provision for an eligible business entity to make new capital expenditures of at least
             46      H. [ $750 million ] $1 billion .H in the state.
             47          (2) Subject to the other provisions of this section, an eligible business entity may:
             48          (a) claim a refundable tax credit as provided in Subsection (3); or
             49          (b) if the eligible business entity is a pass-through entity, pass through to one or more
             50      pass-through entity taxpayers of the pass-through entity, in accordance with Chapter 10, Part
             51      14, Pass-through Entities and Pass-through Entity Taxpayers Act, a refundable tax credit that
             52      the eligible business entity could otherwise claim under this section.
             53          (3) (a) Except as provided in Subsection (3)(b), the amount of the tax credit an eligible
             54      business entity may claim or pass through is the amount listed on the tax credit certificate that
             55      the office issues to the eligible business entity for a taxable year in accordance with Section
             56      63M-1-2908 .



Text Box

- 3 -
             57
         (b) [A] Subject to Subsection (3)(c), a tax credit under this section may not exceed the
             58      amount of eligible new state tax revenues generated by an eligible business entity for the
             59      taxable year for which the eligible business entity claims a tax credit under this section.
             60          (c) A tax credit under this section for an eligible business entity that enters into a
             61      qualifying agreement may not exceed:
             62          (i) for the taxable year in which the eligible business entity first generates eligible new
             63      state tax revenues and the two following years, the amount of eligible new state tax revenues
             64      generated by the eligible business entity; and
             65          (ii) for the seven taxable years following the last of the three taxable years described in
             66      Subsection (3)(c)(i), 75% of the amount of eligible new state tax revenues generated by the
             67      eligible business entity.
             68          (4) An eligible business entity may only claim or pass through a tax credit under this
             69      section[: (a)] for a taxable year for which the eligible business entity holds a tax credit
             70      certificate issued in accordance with Section 63M-1-2908 [; and].
             71          [(b) subject to obtaining a tax credit certificate for each taxable year as required by
             72      Subsection (4)(a):]
             73          [(i) for the taxable year in which the eligible business entity first generates eligible new
             74      state tax revenues; and]
             75          [(ii) for two taxable years immediately following the year described in Subsection
             76      (4)(b)(i).]
             77          (5) An eligible business entity may not:
             78          (a) carry forward or carry back a tax credit under this section; or
             79          (b) claim or pass through a tax credit in an amount greater than the amount listed on a
             80      tax credit certificate issued in accordance with Section 63M-1-2908 for a taxable year.
             81          Section 2. Section 59-10-1025 is amended to read:
             82           59-10-1025. Nonrefundable tax credit for investment in certain life science
             83      establishments.
             84          (1) As used in this section:
             85          (a) "Commercial domicile" means the principal place from which the trade or business
             86      of a Utah small business corporation is directed or managed.
             87          (b) "Eligible claimant, estate, or trust" is as defined in Section 63M-1-2902 .



Text Box

- 4 -
             88
         (c) "Life science establishment" means an establishment described in one of the
             89      following NAICS codes of the 2007 North American Industry Classification System of the
             90      federal Executive Office of the President, Office of Management and Budget:
             91          (i) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
             92          (ii) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
             93      Manufacturing; or
             94          (iii) NAICS Code 334517, Irradiation Apparatus Manufacturing.
             95          (d) "Office" means the Governor's Office of Economic Development.
             96          (e) "Pass-through entity" is as defined in Section 59-10-1402 .
             97          (f) "Pass-through entity taxpayer" is as defined in Section 59-10-1402 .
             98          (g) "Qualifying ownership interest" means an ownership interest that is:
             99          (i) (A) common stock;
             100          (B) preferred stock; or
             101          (C) an ownership interest in a pass-through entity;
             102          (ii) originally issued to:
             103          (A) an eligible claimant, estate, or trust; or
             104          (B) a pass-through entity if the eligible claimant, estate, or trust that claims a tax credit
             105      under this section was a pass-through entity taxpayer of the pass-through entity on the day on
             106      which the qualifying ownership interest was issued and remains a pass-through entity taxpayer
             107      of the pass-through entity until the last day of the taxable year for which the eligible claimant,
             108      estate, or trust claims a tax credit under this section; and
             109          (iii) issued:
             110          (A) by a Utah small business corporation;
             111          (B) on or after January 1, 2011; and
             112          (C) for money or other property, except for stock or securities.
             113          (h) (i) Except as provided in Subsection (1)(h)(ii), "Utah small business corporation" is
             114      as defined in Section 59-10-1022 .
             115          (ii) For purposes of this section, a corporation under Section 1244(c)(3)(A), Internal
             116      Revenue Code, is considered to include a pass-through entity.
             117          (2) Subject to the other provisions of this section, for a taxable year beginning on or
             118      after January 1, 2011, an eligible claimant, estate, or trust that holds a tax credit certificate



Text Box

- 5 -
             119
     issued to the eligible claimant, estate, or trust in accordance with Section 63M-1-2908 for that
             120      taxable year may claim a nonrefundable tax credit in an amount up to 35% of the purchase
             121      price of a qualifying ownership interest in a Utah small business corporation by the claimant,
             122      estate, or trust if:
             123          (a) the qualifying ownership interest is issued by a Utah small business corporation that
             124      is a life science establishment;
             125          (b) the qualifying ownership interest in the Utah small business corporation is
             126      purchased for at least $25,000;
             127          (c) the eligible claimant, estate, or trust owned less than 30% of the qualifying
             128      ownership interest of the Utah small business corporation at the time of the purchase of the
             129      qualifying ownership interest; and
             130          (d) on each day of the taxable year of the purchase of the qualifying ownership interest,
             131      the Utah small business corporation described in Subsection (2)(a) has at least 50% of its
             132      employees in the state.
             133          (3) Subject to Subsection (4), the tax credit under Subsection (2):
             134          (a) may only be claimed by the eligible claimant, estate, or trust:
             135          (i) for a taxable year for which the eligible claimant, estate, or trust holds a tax credit
             136      certificate issued in accordance with Section 63M-1-2908 ; and
             137          (ii) subject to obtaining a tax credit certificate for each taxable year as required by
             138      Subsection (3)(a)(i), for a period of three taxable years as follows:
             139          (A) the tax credit in the taxable year of the purchase of the qualifying ownership
             140      interest may not exceed 10% of the purchase price of the qualifying ownership interest;
             141          (B) the tax credit in the taxable year after the taxable year described in Subsection
             142      (3)(a)(ii)(A) may not exceed 10% of the purchase price of the qualifying ownership interest;
             143      and
             144          (C) the tax credit in the taxable year two years after the taxable year described in
             145      Subsection (3)(a)(ii)(A) may not exceed 15% of the purchase price of the qualifying ownership
             146      interest; and
             147          (b) may not exceed the lesser of:
             148          (i) the amount listed on the tax credit certificate issued in accordance with Section
             149      63M-1-2908 ; or



Text Box

- 6 -
             150
         (ii) $350,000 in a taxable year.
             151          (4) An eligible claimant, estate, or trust may not claim a tax credit under this section
             152      for a taxable year if the eligible claimant, estate, or trust:
             153          (a) has sold any of the qualifying ownership interest during the taxable year; or
             154          (b) does not hold a tax credit certificate for that taxable year that is issued to the
             155      eligible claimant, estate, or trust by the office in accordance with Section 63M-1-2908 .
             156          (5) If a Utah small business corporation in which an eligible claimant, estate, or trust
             157      purchases a qualifying ownership interest fails, dissolves, or otherwise goes out of business, the
             158      eligible claimant, estate, or trust may not claim both the tax credit provided in this section and
             159      a capital loss on the qualifying ownership interest.
             160          (6) If an eligible claimant is a pass-through entity taxpayer that files a return under
             161      Chapter 7, Corporate Franchise and Income Taxes, the eligible claimant may claim the tax
             162      credit under this section on the return filed under Chapter 7, Corporate Franchise and Income
             163      Taxes.
             164          [(6)] (7) A claimant, estate, or trust may not carry forward or carry back a tax credit
             165      under this section.
             166          Section 3. Section 59-10-1109 is amended to read:
             167           59-10-1109. Refundable tax credit for certain business entities generating state
             168      tax revenue increases.
             169          (1) As used in this section:
             170          (a) "Eligible business entity" is as defined in Section 63M-1-2902 .
             171          (b) "Eligible new state tax revenues" is as defined in Section 63M-1-2902 .
             172          (c) "Office" means the Governor's Office of Economic Development.
             173          (d) "Pass-through entity" is as defined in Section 59-10-1402 .
             174          (e) "Pass-through entity taxpayer" is as defined in Section 59-10-1402 .
             175          (f) "Qualifying agreement" is as defined in Section 59-7-614.6 .
             176          (2) Subject to the other provisions of this section, an eligible business entity may:
             177          (a) claim a refundable tax credit as provided in Subsection (3); or
             178          (b) if the eligible business entity is a pass-through entity, pass through to one or more
             179      pass-through entity taxpayers of the pass-through entity, in accordance with Chapter 10, Part
             180      14, Pass-through Entities and Pass-through Entity Taxpayers Act, a refundable tax credit that



Text Box

- 7 -
             181
     the eligible business entity could otherwise claim under this section.
             182          (3) (a) Except as provided in Subsection (3)(b), the amount of the tax credit is:
             183          (i) for an eligible business entity, an amount up to the amount listed on the tax credit
             184      certificate that the office issues to the eligible business entity for the taxable year in accordance
             185      with Section 63M-1-2908 ; or
             186          (ii) for a pass-through entity taxpayer, an amount up to the amount of a tax credit that
             187      an eligible business entity passes through to the pass-through entity taxpayer of the
             188      pass-through entity in accordance with Subsection (2)(b) or Subsection 59-7-614.6 (2)(b).
             189          (b) [A] Subject to Subsection (3)(c), a tax credit under this section may not exceed the
             190      amount of eligible new state tax revenues generated by an eligible business entity for the
             191      taxable year for which the eligible business entity claims a tax credit under this section.
             192          (c) A tax credit under this section for an eligible business entity that enters into a
             193      qualifying agreement may not exceed:
             194          (i) for the taxable year in which the eligible business entity first generates eligible new
             195      state tax revenues and the two following years, the amount of eligible new state tax revenues
             196      generated by the eligible business entity; and
             197          (ii) for the seven taxable years following the last of the three taxable years described in
             198      Subsection (3)(c)(i), 75% of the amount of eligible new state tax revenues generated by the
             199      eligible business entity.
             200          (4) An eligible business entity or pass-through entity taxpayer to which an eligible
             201      business entity passes through a tax credit in accordance with Subsection (2)(b) or Subsection
             202      59-7-614.6 (2)(b) may only claim or pass through a tax credit under this section for[: (a)] a
             203      taxable year for which the eligible business entity holds a tax credit certificate issued in
             204      accordance with Section 63M-1-2908 [; and].
             205          [(b) subject to obtaining a tax credit certificate for each taxable year as required by
             206      Subsection (4)(a):]
             207          [(i) the taxable year in which the eligible business entity first generates eligible new
             208      state tax revenues; and]
             209          [(ii) two taxable years following the year described in Subsection (4)(b)(i).]
             210          (5) An eligible business entity or a pass-through entity taxpayer may not:
             211          (a) carry forward or carry back a tax credit under this section; or



Text Box

- 8 -
             212
         (b) claim a tax credit under both this section and Section 59-7-614.6 .
             213          Section 4. Section 63M-1-2902 is amended to read:
             214           63M-1-2902. Definitions.
             215          As used in this part:
             216          (1) "Board" means the Governor's Office of Economic Development Board of
             217      Directors.
             218          (2) "Claimant" is as defined in Section 59-10-1002 .
             219          (3) "Eligible business entity" means a person that:
             220          (a) enters into an agreement with the office in accordance with this part to receive a tax
             221      credit certificate for a tax credit under Section 59-7-614.6 or 59-10-1109 ;
             222          (b) is:
             223          (i) a life science establishment; or
             224          (ii) described in NAICS Code 334413, Semiconductor and Related Device
             225      Manufacturing, of the 2007 North American Industry Classification System of the federal
             226      Executive Office of the President, Office of Management and Budget;
             227          (c) has at least 50% of its employees in the state for each day of a taxable year the
             228      eligible business entity claims a tax credit under Section 59-7-614.6 or 59-10-1109 ; and
             229          (d) receives a tax credit certificate from the office in accordance with this part.
             230          (4) "Eligible claimant, estate, or trust" means a claimant, estate, or trust that:
             231          (a) enters into an agreement with the office in accordance with this part to receive a tax
             232      credit certificate for a tax credit under Section 59-10-1025 [or 59-10-1026 ]; and
             233          (b) receives a tax credit certificate from the office in accordance with this part.
             234          (5) "Eligible new state tax revenues" means an increased amount of tax revenues
             235      generated as a result of an eligible product or project by an eligible business entity or a new
             236      incremental job within the state under the following:
             237          (a) Title 59, Chapter 7, Corporate Franchise and Income Taxes;
             238          (b) Title 59, Chapter 10, Individual Income Tax Act; and
             239          (c) Title 59, Chapter 12, Sales and Use Tax Act.
             240          (6) "Eligible product or project" means any product or project produced by an eligible
             241      business entity that was not produced prior to the date of an agreement with the office under
             242      Section 63M-1-2908 :



Text Box

- 9 -
             243
         (a) by the eligible business entity; and
             244          (b) within the state.
             245          (7) "Life science establishment" is as defined in Section 59-10-1025 .
             246          (8) "New incremental job within the state" means, with respect to an eligible business
             247      entity, an employment position that:
             248          (a) did not exist within the state before:
             249          (i) the eligible business entity entered into an agreement with the office in accordance
             250      with this part; and
             251          (ii) the eligible product was produced or the eligible project began;
             252          (b) is not shifted from one location in the state to another location in the state; and
             253          (c) is established to the satisfaction of the office, including by amounts paid or
             254      withheld by the eligible business entity under Title 59, Chapter 10, Individual Income Tax Act.
             255          (9) "Office" means the Governor's Office of Economic Development.
             256          (10) "Tax credit" means a tax credit under:
             257          (a) Section 59-7-614.6 ;
             258          (b) Section 59-10-1025 ; or
             259          [(c) Section 59-10-1026 ; or]
             260          [(d)] (c) Section 59-10-1109 .
             261          (11) "Tax credit applicant" means a person that applies to the office to receive a tax
             262      credit certificate under this part.
             263          (12) "Tax credit certificate" means a certificate issued by the office that:
             264          (a) lists the name of the tax credit certificate recipient;
             265          (b) lists the tax credit certificate recipient's taxpayer identification number;
             266          (c) lists the amount of the tax credit certificate recipient's tax credits authorized under
             267      this part for a taxable year; and
             268          (d) includes other information as determined by the office.
             269          (13) "Tax credit certificate recipient" means:
             270          (a) an eligible business entity that receives a tax credit certificate in accordance with
             271      this part for a tax credit under Section 59-7-614.6 or 59-10-1109 ; or
             272          (b) an eligible claimant, estate, or trust that receives a tax credit certificate in
             273      accordance with this part for a tax credit under Section 59-10-1025 [or 59-10-1026 ].



Text Box

- 10 -
House Committee Amendments 2-29-2012 le/rlr
             274
         Section 5. Section 63M-1-2903 is amended to read:
             275           63M-1-2903. Tax credits issued by office.
             276          (1) (a) The office may issue tax credit certificates under this part only to the extent that
             277      the Legislature, by statute, expressly [sets aside money for] authorizes the office to issue the tax
             278      credit certificates under this part for a fiscal year.
             279          (b) The Legislature intends that a statutory authorization under Subsection (1)(a)
             280      specify:
             281          (i) the total allocation to the tax credits under Section 59-7-614.6 and 59-10-1109 ; and
             282          (ii) the allocation to the tax credit under Section 59-10-1025 .
             283          (2) For fiscal year 2011-12 only, the office may issue a total of $1,300,000 in tax credit
             284      certificates in accordance with this part.
             285          (3) (a) If the total amount of tax credit certificates the office issues in a fiscal year is
             286      less than the amount of tax credit certificates the office may issue under this part in a fiscal
             287      year, the office may issue the remaining amount of tax credit certificates in a fiscal year after
             288      the fiscal year for which there is a remaining amount of tax credit certificates.
             289          (b) H. [ If ] Except as provided in Subsection (3)(c), if .H the total amount of tax credit
             289a      certificates the office issues in a quarter of a fiscal
             290      year is less than the amount of tax credit certificates the office may issue under this part in that
             291      quarter, the office may issue the remaining amount of tax credit certificates in a quarter after
             292      the quarter for which there is a remaining amount of tax credit certificates.
             292a      H. (c) For fiscal year 2011-12 only, if the total amount of tax credit certificates the office
             292b      issues in fiscal year 2011-12 is less than the amount of tax credit certificates the office may
             292c      issue in tax credit certificates under Subsection (2), the office:
             292d      (i) may issue the remaining amount of tax credit certificates in a fiscal year after fiscal year
             292e      2011-12; and
             292f      (ii) is not required to allocate the tax credit certificates to any particular quarter. .H
             293          Section 6. Section 63M-1-2905 is amended to read:
             294           63M-1-2905. Application process.
             295          (1) A tax credit applicant may [annually] apply to the office to receive a tax credit
             296      certificate by filing an application with the office:
             297          (a) [on or before July 1] on or before the quarterly deadline established by the office by
             298      rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and
             299          (b) on a form and in the manner prescribed by the office.
             300          (2) The application shall include:


            
Text Box

- 10a -
House Committee Amendments 2-29-2012 le/rlr
301
         (a) tax return information as required by the office that is necessary for the office to
             302      determine eligibility for and the amount of a tax credit; and
             303          (b) other documentation as required by the office.
             304          (3) As part of the application required by this section, a tax credit applicant shall sign a



Text Box

- 11 -
House Committee Amendments 2-29-2012 le/rlr
             305
     separate document that expressly directs and authorizes the State Tax Commission to disclose
             306      to the office the tax credit certificate recipient's tax returns and other information concerning
             307      the tax credit certificate that:
             308          (a) would otherwise be subject to confidentiality under Section 59-1-403 or Section
             309      6103, Internal Revenue Code; and
             310          (b) are necessary for the office to determine eligibility for and the amount of a tax
             311      credit under this part.
             312          (4) Upon receipt of the document described in Subsection (3), the State Tax
             313      Commission shall provide the office with the tax returns and other information requested by
             314      the office that the tax credit applicant directed or authorized the State Tax Commission to
             315      provide to the office, including information necessary to determine eligibility for the amount of
             316      a tax credit.
             317          (5) If the office determines that the information a tax credit applicant provides is
             318      inadequate to provide a reasonable justification for authorizing a tax credit, the office shall:
             319          (a) deny the tax credit; or
             320          (b) inform the tax credit applicant that the information is inadequate and ask the tax
             321      credit applicant to submit new or additional documentation.
             322          Section 7. Section 63M-1-2908 is amended to read:
             323           63M-1-2908. Agreement between tax credit applicant and office -- Tax credit
             324      certificate.
             325          (1) (a) Except as provided in Subsection 63M-1-2903 (3)(b), for each quarter of a fiscal
             326      year H. after fiscal year 2011-12 .H , the office shall allocate:
             327          (i) 25% of the total amounts made available for allocation in accordance with Section
             328      63M-1-2903 for the tax credits under Sections 59-7-614.6 and 59-10-1109 ; and
             329          (ii) 25% of the amounts made available for allocation in accordance with Section
             330      63M-1-2903 for the tax credit under Section 59-10-1025 .
             331          [(1)] (b) Subject to the other provisions of this part, the office, with advice from the
             332      board, shall determine [on or before the August 1 immediately following the July 1 described
             333      in Subsection 63M-1-2905 (1)] quarterly:
             334          [(a)] (i) the tax credit applicant or applicants to which a tax credit certificate may be
             335      provided; and



Text Box

- 12 -
House Committee Amendments 2-29-2012 le/rlr
             336
         [(b)] (ii) the amount of tax credit a tax credit applicant may receive.
             337          (2) The office, with advice from the board, may enter into an agreement to grant a tax
             338      credit certificate to a tax credit applicant selected in accordance with this part, if the tax credit
             339      applicant meets the conditions established in the agreement and under this part.
             340          (3) The agreement described in Subsection (2) shall:
             341          (a) detail the requirements that the tax credit applicant shall meet prior to receiving a
             342      tax credit certificate;
             343          (b) require the tax credit certificate recipient to retain records supporting a claim for a
             344      tax credit for at least four years after the tax credit certificate recipient claims a tax credit under
             345      this part; and
             346          (c) require the tax credit certificate recipient to submit to audits for verification of the
             347      tax credit claimed, including audits by the office and by the State Tax Commission.
             348          Section 8. Section 63M-1-2909 is amended to read:
             349           63M-1-2909. Issuance of tax credit certificates.
             350          (1) For a tax credit applicant that seeks to claim a tax credit [under Section 59-7-614.6 ,
             351      59-10-1025 , or 59-10-1109 ], the office may issue a tax credit certificate to the tax credit
             352      applicant:
             353          (a) for the first taxable year for which the tax credit applicant qualifies for the tax credit
             354      and enters into an agreement with the office; [and]
             355          (b) for two taxable years immediately following the taxable year described in
             356      Subsection (1)(a)[.]; and
             357          [(2) For a tax credit applicant that seeks to claim a tax credit under Section
             358      59-10-1026 , the office may issue a tax credit certificate to the tax credit applicant only for the
             359      taxable year for which the tax credit applicant qualifies for the tax credit and enters into an
             360      agreement with the office.]
             361          (c) for the seven taxable years immediately following the last of the two taxable years
             362      described in Subsection (1)(b) if:
             363          (i) the agreement with the office described in Section 63M-1-2908 includes a provision
             364      that the tax credit applicant will make new capital expenditures of at least H. [ $750 million ]
             364a      $1 billion .H in the
             365      state; and
             366          (ii) the tax credit applicant makes new capital expenditures of at least H. [ $750 million ]
             366a      $1 billion .H in



Text Box

- 13 -
             367
     the state in accordance with the agreement with the office described in Section 63M-1-2908 .
             368          [(3)] (2) The office shall provide a duplicate copy of each tax credit certificate to the
             369      State Tax Commission.
             370          Section 9. Section 63M-1-2910 is amended to read:
             371           63M-1-2910. Report to the Legislature -- Study by legislative committees.
             372          (1) The office shall annually report to the Workforce Services and Community and
             373      Economic Development Interim Committee and Revenue and Taxation Interim Committee
             374      describing:
             375          (a) the total amount listed on tax credit certificates the office issues under this part;
             376          (b) the criteria that the office uses in prioritizing the issuance of tax credits amongst tax
             377      credit applicants under this part; and
             378          (c) the economic impact on the state related to providing tax credits under this part.
             379          (2) (a) On or before November 1, [2011] 2016, and every five years after November 1,
             380      [2011] 2016, the Workforce Services and Community and Economic Development Interim
             381      Committee and Revenue and Taxation Interim Committee shall:
             382          (i) study the tax credits allowed under Sections 59-7-614.6 , 59-10-1025 , [ 59-10-1026 ,]
             383      and 59-10-1109 ; and
             384          (ii) make recommendations concerning whether the tax credits should be continued,
             385      modified, or repealed.
             386          (b) The study under Subsection (2)(a) shall include an evaluation of:
             387          (i) the cost of the tax credits under Sections 59-7-614.6 , 59-10-1025 , [ 59-10-1026 ,] and
             388      59-10-1109 ;
             389          (ii) the purposes and effectiveness of the tax credits; and
             390          (iii) the extent to which the state benefits from the tax credits.
             391          Section 10. Repealer.
             392          This bill repeals:
             393          Section 59-10-1026, Nonrefundable tax credit for capital gain transactions related
             394      to a life science establishment.
             395          Section 11. Retrospective operation.
             396          This bill has retrospective operation for a taxable year beginning on or after January 1,
             397      2012.


[Bill Documents][Bills Directory]