1     
TAXATION OF FOREIGN INCOME AMENDMENTS

2     
2016 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Brad R. Wilson

5     
Senate Sponsor: Curtis S. Bramble

6     

7     LONG TITLE
8     General Description:
9          This bill addresses adjustments to adjusted gross income.
10     Highlighted Provisions:
11          This bill:
12          ▸     addresses adjustments to adjusted gross income for certain manufacturing entities
13     that pay an income tax to a foreign country.
14     Money Appropriated in this Bill:
15          None
16     Other Special Clauses:
17          None
18     Utah Code Sections Affected:
19     AMENDS:
20          59-10-115, as last amended by Laws of Utah 2008, Chapters 382 and 389
21     

22     Be it enacted by the Legislature of the state of Utah:
23          Section 1. Section 59-10-115 is amended to read:
24          59-10-115. Adjustments to adjusted gross income.
25          (1) As used in this section:
26          (a) "Net foreign source taxable income" means:
27          (i) the amount calculated on line 17 of Internal Revenue Code Form 1116, Foreign Tax
28     Credit; or
29          (ii) if, for purposes of federal individual income taxes, the amount calculated on line 17
30     of Form 1116 is reported on a line other than line 17 of Form 1116, the amount on a line of a
31     federal individual income tax form designated by the commission as being substantially similar
32     to line 17 of the 2015 version of Form 1116.
33          (b) "Pass-through entity taxpayer" means the same as that term is defined in Section
34     59-10-1402.
35          [(1)] (2) The commission shall allow an adjustment to adjusted gross income of a
36     resident or nonresident individual if the resident or nonresident individual would otherwise:
37          (a) receive a double tax benefit under this part; or
38          (b) suffer a double tax detriment under this part.
39          (3) (a) For a pass-through entity taxpayer generating taxable income primarily from
40     establishments classified in Code Section 33242, Metal Tank (Heavy Gauge) Manufacturing,
41     of the 2002 or 2007 North American Industry Classification System of the federal Executive
42     Office of the President, Office of Management and Budget, an adjustment described in
43     Subsection (2) includes net foreign source taxable income generated from Metal Tank (Heavy
44     Gauge) Manufacturing establishments.
45          (b) The adjustment described in Subsection (3)(a) applies to a taxable year beginning
46     on or after January 1, 2017.
47          [(2)] (4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
48     Act, the commission may make rules [to allow]:
49          (a) making the designation described in Subsection (1)(a)(ii), if necessary; and
50          (b) allowing for the adjustment to adjusted gross income required by Subsection [(1)]
51     (2).