8 LONG TITLE
9 General Description:
10 This bill enacts a tax credit and provides for transfers from the General Fund into the
11 Education Fund in the amount of tax credit claimed.
12 Highlighted Provisions:
13 This bill:
14 . enacts a state earned income tax credit;
15 . provides for apportionment of the tax credit;
16 . addresses the time period for which the tax credit may be claimed;
17 . requires transfers from the General Fund into the Education Fund in the amount of
18 tax credit claimed;
19 . grants rulemaking authority to the State Tax Commission; and
20 . makes technical and conforming changes.
21 Money Appropriated in this Bill:
23 Other Special Clauses:
25 Utah Code Sections Affected:
27 59-10-1102.1 , Utah Code Annotated 1953
28 59-10-1110 , Utah Code Annotated 1953
30 Be it enacted by the Legislature of the state of Utah:
31 Section 1. Section 59-10-1102.1 is enacted to read:
32 59-10-1102.1. Apportionment of tax credit.
33 A nonresident individual or a part-year resident individual who claims a tax credit in
34 accordance with Section 59-10-1110 may only claim an apportioned amount of the tax credit
35 equal to the product of:
36 (1) the state income tax percentage for the nonresident individual or part-year resident
37 individual; and
38 (2) the amount of the tax credit that the nonresident individual or part-year resident
39 individual would have been allowed to claim but for the apportionment requirements of this
41 Section 2. Section 59-10-1110 is enacted to read:
42 59-10-1110. State 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 claims as allowed for a taxable year in accordance
45 with Section 32, Internal Revenue Code, on the claimant's federal individual income tax return.
46 (2) Except as provided in Section 59-10-1102.1 and subject to Subsections (3) and (4),
47 a claimant may claim a refundable earned income tax credit equal to 5% of the federal earned
48 income tax credit.
49 (3) A claimant may not carry forward or carry back a tax credit provided for under this
51 (4) A claimant may claim a tax credit under this section for a taxable year beginning on
52 or after the first day of the claimant's taxable year that begins on or after the January 1
53 immediately following the earlier of:
54 (a) the date a decision described in Subsection 59-12-103.1 (1)(a) becomes a final,
55 unappealable decision; or
56 (b) the effective date of the action by Congress described in Subsection
57 59-12-103.1 (1)(b).
58 (5) In accordance with any rules prescribed by the commission under Subsection
59 (6)(b), the commission shall transfer at least annually from the General Fund into the Education
60 Fund an amount equal to the amount of tax credit claimed under this section.
61 (6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
62 commission may make rules:
63 (a) providing procedures for issuing refunds for a tax credit claimed under this section;
65 (b) making a transfer from the General Fund into the Education Fund as required by
66 Subsection (5).
Legislative Review Note
as of 1-30-14 10:33 AM