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7 LONG TITLE
8 General Description:
9 This bill creates a tax credit for employers offering paid family and medical leave.
10 Highlighted Provisions:
11 This bill:
12 ▸ permits a taxpayer for a taxable year to claim a nonrefundable tax credit equal to
13 25% of the amount claimed under the federal employer tax credit for paid family
14 and medical leave;
15 ▸ permits a taxpayer to carry forward a paid family and medical leave tax credit for
16 five years;
17 ▸ requires the Revenue and Taxation Interim Committee to conduct a review of the
18 paid family and medical leave tax credit in 2020; and
19 ▸ makes technical and conforming changes.
20 Money Appropriated in this Bill:
21 None
22 Other Special Clauses:
23 None
24 Utah Code Sections Affected:
25 AMENDS:
26 59-7-159, as enacted by Laws of Utah 2016, Third Special Session, Chapter 1
27 59-10-137, as enacted by Laws of Utah 2016, Third Special Session, Chapter 1
28 ENACTS:
29 59-7-623, Utah Code Annotated 1953
30 59-10-1041, Utah Code Annotated 1953
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32 Be it enacted by the Legislature of the state of Utah:
33 Section 1. Section 59-7-159 is amended to read:
34 59-7-159. Review of credits allowed under this chapter.
35 (1) As used in this section, "committee" means the Revenue and Taxation Interim
36 Committee.
37 (2) (a) The committee shall review the tax credits described in this chapter as provided
38 in Subsection (3) and make recommendations concerning whether the tax credits should be
39 continued, modified, or repealed.
40 (b) In conducting the review required under Subsection (2)(a), the committee shall:
41 (i) schedule time on at least one committee agenda to conduct the review;
42 (ii) invite state agencies, individuals, and organizations concerned with the tax credit
43 under review to provide testimony;
44 (iii) (A) invite the Governor's Office of Economic Development to present a summary
45 and analysis of the information for each tax credit regarding which the Governor's Office of
46 Economic Development is required to make a report under this chapter; and
47 (B) invite the Office of the Legislative Fiscal Analyst to present a summary and
48 analysis of the information for each tax credit regarding which the Office of the Legislative
49 Fiscal Analyst is required to make a report under this chapter;
50 (iv) ensure that the committee's recommendations described in this section include an
51 evaluation of:
52 (A) the cost of the tax credit to the state;
53 (B) the purpose and effectiveness of the tax credit; and
54 (C) the extent to which the state benefits from the tax credit; and
55 (v) undertake other review efforts as determined by the committee chairs or as
56 otherwise required by law.
57 (3) (a) On or before November 30, 2017, and every three years after 2017, the
58 committee shall conduct the review required under Subsection (2) of the tax credits allowed
59 under the following sections:
60 (i) Section 59-7-601;
61 (ii) Section 59-7-607;
62 (iii) Section 59-7-612;
63 (iv) Section 59-7-614.1; and
64 (v) Section 59-7-614.5.
65 (b) On or before November 30, 2018, and every three years after 2018, the committee
66 shall conduct the review required under Subsection (2) of the tax credits allowed under the
67 following sections:
68 (i) Section 59-7-609;
69 (ii) Section 59-7-614.2;
70 (iii) Section 59-7-614.10;
71 (iv) Section 59-7-617;
72 (v) Section 59-7-619; and
73 (vi) Section 59-7-620.
74 (c) On or before November 30, 2019, and every three years after 2019, the committee
75 shall conduct the review required under Subsection (2) of the tax credits allowed under the
76 following sections:
77 (i) Section 59-7-605;
78 (ii) Section 59-7-610;
79 (iii) Section 59-7-614;
80 (iv) Section 59-7-614.7;
81 (v) Section 59-7-614.8; and
82 (vi) Section 59-7-618.
83 (d) (i) In addition to the reviews described in this Subsection (3), the committee shall
84 conduct a review of a tax credit described in this chapter that is enacted on or after January 1,
85 2017.
86 (ii) [
87 review described in [
88 credit and every three years after the initial review date.
89 (iii) The committee shall complete a review described in Subsection (3)(d)(i) for the
90 tax credit described in Section 59-7-623:
91 (A) two years after the effective date of the tax credit; and
92 (B) if the tax credit remains in effect, every three years after the date described in
93 Subsection (3)(d)(iii)(A).
94 Section 2. Section 59-7-623 is enacted to read:
95 59-7-623. Nonrefundable tax credit for paid family and medical leave.
96 (1) As used in this section:
97 (a) "Federal employer tax credit for paid family and medical leave" means the amount
98 of the general business credit a taxpayer claims for a taxable year under Section 45S, Internal
99 Revenue Code.
100 (b) "General business credit" means the business credit described in Section 38,
101 Internal Revenue Code.
102 (2) For a taxable year beginning on or after January 1, 2018, but beginning on or before
103 December 31, 2019, a taxpayer may claim a nonrefundable tax credit equal to 25% of the
104 federal employer tax credit for paid family and medical leave.
105 (3) A taxpayer may carry forward for five years the amount of the tax credit described
106 in this section that exceeds the taxpayer's liability.
107 Section 3. Section 59-10-137 is amended to read:
108 59-10-137. Review of credits allowed under this chapter.
109 (1) As used in this section, "committee" means the Revenue and Taxation Interim
110 Committee.
111 (2) (a) The committee shall review the tax credits described in this chapter as provided
112 in Subsection (3) and make recommendations concerning whether the tax credits should be
113 continued, modified, or repealed.
114 (b) In conducting the review required under Subsection (2)(a), the committee shall:
115 (i) schedule time on at least one committee agenda to conduct the review;
116 (ii) invite state agencies, individuals, and organizations concerned with the tax credit
117 under review to provide testimony;
118 (iii) (A) invite the Governor's Office of Economic Development to present a summary
119 and analysis of the information for each tax credit regarding which the Governor's Office of
120 Economic Development is required to make a report under this chapter; and
121 (B) invite the Office of the Legislative Fiscal Analyst to present a summary and
122 analysis of the information for each tax credit regarding which the Office of the Legislative
123 Fiscal Analyst is required to make a report under this chapter;
124 (iv) ensure that the committee's recommendations described in this section include an
125 evaluation of:
126 (A) the cost of the tax credit to the state;
127 (B) the purpose and effectiveness of the tax credit; and
128 (C) the extent to which the state benefits from the tax credit; and
129 (v) undertake other review efforts as determined by the committee chairs or as
130 otherwise required by law.
131 (3) (a) On or before November 30, 2017, and every three years after 2017, the
132 committee shall conduct the review required under Subsection (2) of the tax credits allowed
133 under the following sections:
134 (i) Section 59-10-1004;
135 (ii) Section 59-10-1010;
136 (iii) Section 59-10-1015;
137 (iv) Section 59-10-1025;
138 (v) Section 59-10-1027;
139 (vi) Section 59-10-1031;
140 (vii) Section 59-10-1032;
141 (viii) Section 59-10-1035;
142 (ix) Section 59-10-1104;
143 (x) Section 59-10-1105; and
144 (xi) Section 59-10-1108.
145 (b) On or before November 30, 2018, and every three years after 2018, the committee
146 shall conduct the review required under Subsection (2) of the tax credits allowed under the
147 following sections:
148 (i) Section 59-10-1005;
149 (ii) Section 59-10-1006;
150 (iii) Section 59-10-1012;
151 (iv) Section 59-10-1013;
152 (v) Section 59-10-1022;
153 (vi) Section 59-10-1023;
154 (vii) Section 59-10-1028;
155 (viii) Section 59-10-1034;
156 (ix) Section 59-10-1037; and
157 (x) Section 59-10-1107.
158 (c) On or before November 30, 2019, and every three years after 2019, the committee
159 shall conduct the review required under Subsection (2) of the tax credits allowed under the
160 following sections:
161 (i) Section 59-10-1007;
162 (ii) Section 59-10-1009;
163 (iii) Section 59-10-1014;
164 (iv) Section 59-10-1017;
165 (v) Section 59-10-1018;
166 (vi) Section 59-10-1019;
167 (vii) Section 59-10-1024;
168 (viii) Section 59-10-1029;
169 (ix) Section 59-10-1030;
170 (x) Section 59-10-1033;
171 (xi) Section 59-10-1036;
172 (xii) Section 59-10-1106; and
173 (xiii) Section 59-10-1111.
174 (d) (i) In addition to the reviews described in this Subsection (3), the committee shall
175 conduct a review of a tax credit described in this chapter that is enacted on or after January 1,
176 2017.
177 (ii) [
178 review described in [
179 credit and every three years after the initial review date.
180 (iii) The committee shall complete a review described in Subsection (3)(d)(i) for the
181 tax credit described in Section 59-10-1041:
182 (A) two years after the effective date of the tax credit; and
183 (B) if the tax credit remains in effect, every three years after the date described in
184 Subsection (3)(d)(iii)(A).
185 Section 4. Section 59-10-1041 is enacted to read:
186 59-10-1041. Nonrefundable tax credit for paid family and medical leave.
187 (1) As used in this section:
188 (a) "Federal employer tax credit for paid family and medical leave" means the amount
189 of the general business credit a taxpayer claims for a taxable year under Section 45S, Internal
190 Revenue Code.
191 (b) "General business credit" means the business credit described in Section 38,
192 Internal Revenue Code.
193 (2) For a taxable year beginning on or after January 1, 2018, but beginning on or before
194 December 31, 2019, a taxpayer may claim a nonrefundable tax credit equal to 25% of the
195 federal employer tax credit for paid family and medical leave.
196 (3) A taxpayer may carry forward for five years the amount of the tax credit described
197 in this section that exceeds the taxpayer's liability.
Legislative Review Note
Office of Legislative Research and General Counsel