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7 LONG TITLE
8 General Description:
9 This bill amends provisions related to tax credits.
10 Highlighted Provisions:
11 This bill:
12 ▸ repeals a provision that prohibits a person from carrying forward a tax credit if the
13 State Tax Commission is required to remove the tax credit from a tax return;
14 ▸ exempts corporate and individual historic preservation tax credits from provisions
15 requiring the State Tax Commission to remove the tax credits from a tax return
16 under certain circumstances; and
17 ▸ makes technical and conforming changes.
18 Money Appropriated in this Bill:
19 None
20 Other Special Clauses:
21 This bill provides retrospective operation.
22 Utah Code Sections Affected:
23 AMENDS:
24 59-7-903, as last amended by Laws of Utah 2015, Chapter 41
25 59-10-1002.1, as last amended by Laws of Utah 2015, Chapters 30 and 41
26
27 Be it enacted by the Legislature of the state of Utah:
28 Section 1. Section 59-7-903 is amended to read:
29 59-7-903. Removal of tax credit from tax return -- Prohibition on claiming a tax
30 credit -- Commission publishing requirements.
31 (1) Subject to Subsection (2) and except as provided in Subsection (3), the commission
32 shall remove a tax credit from a tax return and a person filing a tax return may not claim [
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34 (a) the total amount of tax credit claimed or carried forward by all persons who file a
35 tax return is less than $10,000 per taxable year for three consecutive taxable years; and
36 (b) less than 10 persons per year for the three consecutive taxable years described in
37 Subsection (1)(a) file a tax return claiming or carrying forward the tax credit.
38 (2) If the commission determines the requirements of Subsection (1) are met, the
39 commission shall remove a tax credit from a tax return and a person filing a tax return may not
40 claim [
41 immediately following the date the commission determines the requirements of Subsection (1)
42 are met.
43 (3) This section does not apply to a tax credit under Section 59-7-609.
44 [
45 after the taxable year in which the commission determines the requirements of Subsection (1)
46 are met, report to the Revenue and Taxation Interim Committee that, in accordance with this
47 section:
48 (a) the commission is required to remove a tax credit from a return on which the tax
49 credit appears; and
50 (b) a person filing a tax return may not claim [
51 [
52 [
53 each tax credit that the commission will remove from a return on which the tax credit appears.
54 (b) The list shall:
55 (i) be published on:
56 (A) the commission's website; and
57 (B) the public legal notice website in accordance with Section 45-1-101;
58 (ii) include a statement that:
59 (A) the commission is required to remove the tax credit from each return on which the
60 tax credit appears; and
61 (B) the tax credit may not be claimed [
62 (iii) state the taxable year for which the removal described in Subsection [
63 takes effect; and
64 (iv) remain available for viewing and searching until the commission publishes a new
65 list in accordance with this Subsection [
66 Section 2. Section 59-10-1002.1 is amended to read:
67 59-10-1002.1. Removal of tax credit from tax return and prohibition on claiming
68 a tax credit -- Conditions for removal and prohibition on claiming a tax credit --
69 Commission publishing requirements.
70 (1) As used in this section, "tax return" means a tax return filed in accordance with this
71 chapter.
72 (2) Except as provided in Subsection (4), beginning two taxable years after the
73 requirements of Subsection (3) are met:
74 (a) the commission shall remove a tax credit allowed under this part from each tax
75 return on which the tax credit appears; and
76 (b) a claimant, estate, or trust filing a tax return may not claim [
77 tax credit.
78 (3) Except as provided in Subsection (4), the commission shall remove a tax credit
79 allowed under this part from a tax return and a claimant, estate, or trust filing a tax return may
80 not claim [
81 (a) the total amount of the tax credit claimed or carried forward by all claimants,
82 estates, or trusts filing tax returns is less than $10,000 per year for three consecutive taxable
83 years beginning on or after January 1, 2002; and
84 (b) less than 10 claimants, estates, and trusts per year for the three consecutive taxable
85 years described in Subsection (3)(a), file a tax return claiming or carrying forward the tax
86 credit.
87 (4) This section does not apply to a tax credit under Section 59-10-1006 or 59-10-1027.
88 (5) The commission shall, on or before the November interim meeting of the year after
89 the taxable year in which the requirements of Subsection (3) are met, report to the Revenue and
90 Taxation Interim Committee that in accordance with this section:
91 (a) the commission is required to remove a tax credit from each tax return on which the
92 tax credit appears; and
93 (b) a claimant, estate, or trust filing a tax return may not claim [
94 tax credit.
95 (6) (a) Within a 30-day period after making the report required by Subsection (5), the
96 commission shall publish a list in accordance with Subsection (6)(b) stating each tax credit that
97 the commission will remove from a return on which the tax credit appears.
98 (b) The list shall:
99 (i) be published on:
100 (A) the commission's website; and
101 (B) the public legal notice website in accordance with Section 45-1-101;
102 (ii) include a statement that:
103 (A) the commission is required to remove the tax credit from each return on which the
104 tax credit appears; and
105 (B) the tax credit may not be claimed [
106 (iii) state the taxable year for which the removal described in Subsection (6)(a) takes
107 effect; and
108 (iv) remain available for viewing and searching until the commission publishes a new
109 list in accordance with this Subsection (6).
110 Section 3. Retrospective operation.
111 This bill has retrospective operation for a taxable year beginning on or after January 1,
112 2016.