Representative Rebecca P. Edwards proposes the following substitute bill:


1     
PAID FAMILY AND MEDICAL LEAVE TAX CREDIT

2     
2018 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Rebecca P. Edwards

5     
Senate Sponsor: Lincoln Fillmore

6     Cosponsors:
7     Cheryl K. Acton
8     Carl R. Albrecht
9     Patrice M. Arent
10     Joel K. Briscoe
11     Walt Brooks
12     Rebecca Chavez-Houck
13     Brad M. Daw
14     Susan Duckworth
15     Steve Eliason
16     Gage Froerer
Stephen G. Handy
Sandra Hollins
Eric K. Hutchings
Brian S. King
Karen Kwan
Carol Spackman Moss
Michael E. Noel
Lee B. Perry
Marie H. Poulson
Paul Ray
Angela Romero
Douglas V. Sagers
Robert M. Spendlove
Raymond P. Ward
Christine F. Watkins
R. Curt Webb
Elizabeth Weight
John R. Westwood
Mark A. Wheatley
Mike Winder
17     

18     LONG TITLE
19     General Description:
20          This bill creates a tax credit for employers offering paid family and medical leave.
21     Highlighted Provisions:
22          This bill:
23          ▸     permits a taxpayer for a taxable year to claim a nonrefundable tax credit equal to 5%
24     of the amount the taxpayer is allowed to claim under the federal employer tax credit

25     for paid family and medical leave;
26          ▸     permits a taxpayer to carry forward a paid family and medical leave tax credit for
27     five years;
28          ▸     requires the Revenue and Taxation Interim Committee to conduct a review of the
29     paid family and medical leave tax credit in 2020; and
30          ▸     makes technical and conforming changes.
31     Money Appropriated in this Bill:
32          None
33     Other Special Clauses:
34          None
35     Utah Code Sections Affected:
36     AMENDS:
37          59-7-159, as enacted by Laws of Utah 2016, Third Special Session, Chapter 1
38          59-10-137, as enacted by Laws of Utah 2016, Third Special Session, Chapter 1
39     ENACTS:
40          59-7-623, Utah Code Annotated 1953
41          59-10-1041, Utah Code Annotated 1953
42     

43     Be it enacted by the Legislature of the state of Utah:
44          Section 1. Section 59-7-159 is amended to read:
45          59-7-159. Review of credits allowed under this chapter.
46          (1) As used in this section, "committee" means the Revenue and Taxation Interim
47     Committee.
48          (2) (a) The committee shall review the tax credits described in this chapter as provided
49     in Subsection (3) and make recommendations concerning whether the tax credits should be
50     continued, modified, or repealed.
51          (b) In conducting the review required under Subsection (2)(a), the committee shall:
52          (i) schedule time on at least one committee agenda to conduct the review;
53          (ii) invite state agencies, individuals, and organizations concerned with the tax credit
54     under review to provide testimony;
55          (iii) (A) invite the Governor's Office of Economic Development to present a summary

56     and analysis of the information for each tax credit regarding which the Governor's Office of
57     Economic Development is required to make a report under this chapter; and
58          (B) invite the Office of the Legislative Fiscal Analyst to present a summary and
59     analysis of the information for each tax credit regarding which the Office of the Legislative
60     Fiscal Analyst is required to make a report under this chapter;
61          (iv) ensure that the committee's recommendations described in this section include an
62     evaluation of:
63          (A) the cost of the tax credit to the state;
64          (B) the purpose and effectiveness of the tax credit; and
65          (C) the extent to which the state benefits from the tax credit; and
66          (v) undertake other review efforts as determined by the committee chairs or as
67     otherwise required by law.
68          (3) (a) On or before November 30, 2017, and every three years after 2017, the
69     committee shall conduct the review required under Subsection (2) of the tax credits allowed
70     under the following sections:
71          (i) Section 59-7-601;
72          (ii) Section 59-7-607;
73          (iii) Section 59-7-612;
74          (iv) Section 59-7-614.1; and
75          (v) Section 59-7-614.5.
76          (b) On or before November 30, 2018, and every three years after 2018, the committee
77     shall conduct the review required under Subsection (2) of the tax credits allowed under the
78     following sections:
79          (i) Section 59-7-609;
80          (ii) Section 59-7-614.2;
81          (iii) Section 59-7-614.10;
82          (iv) Section 59-7-617;
83          (v) Section 59-7-619; and
84          (vi) Section 59-7-620.
85          (c) On or before November 30, 2019, and every three years after 2019, the committee
86     shall conduct the review required under Subsection (2) of the tax credits allowed under the

87     following sections:
88          (i) Section 59-7-605;
89          (ii) Section 59-7-610;
90          (iii) Section 59-7-614;
91          (iv) Section 59-7-614.7;
92          (v) Section 59-7-614.8; and
93          (vi) Section 59-7-618.
94          (d) (i) In addition to the reviews described in this Subsection (3), the committee shall
95     conduct a review of a tax credit described in this chapter that is enacted on or after January 1,
96     2017.
97          (ii) [The] Except as provided in Subsection (3)(d)(iii), the committee shall complete a
98     review described in [this] Subsection (3)(d)(i) three years after the effective date of the tax
99     credit and every three years after the initial review date.
100          (iii) The committee shall complete a review described in Subsection (3)(d)(i) for the
101     tax credit described in Section 59-7-623:
102          (A) two years after the effective date of the tax credit; and
103          (B) if the tax credit remains in effect, every three years after the date described in
104     Subsection (3)(d)(iii)(A).
105          Section 2. Section 59-7-623 is enacted to read:
106          59-7-623. Nonrefundable tax credit for paid family and medical leave.
107          (1) As used in this section:
108          (a) "Federal employer tax credit for paid family and medical leave" means the amount
109     of the general business credit a taxpayer is allowed to claim for a taxable year under Section
110     45S, Internal Revenue Code.
111          (b) "General business credit" means the business credit described in Section 38,
112     Internal Revenue Code.
113          (2) For a taxable year beginning on or after January 1, 2018, but beginning on or before
114     December 31, 2019, a taxpayer may claim a nonrefundable tax credit equal to 5% of the federal
115     employer tax credit for paid family and medical leave.
116          (3) A taxpayer may carry forward for five years the amount of the tax credit described
117     in this section that exceeds the taxpayer's liability.

118          Section 3. Section 59-10-137 is amended to read:
119          59-10-137. Review of credits allowed under this chapter.
120          (1) As used in this section, "committee" means the Revenue and Taxation Interim
121     Committee.
122          (2) (a) The committee shall review the tax credits described in this chapter as provided
123     in Subsection (3) and make recommendations concerning whether the tax credits should be
124     continued, modified, or repealed.
125          (b) In conducting the review required under Subsection (2)(a), the committee shall:
126          (i) schedule time on at least one committee agenda to conduct the review;
127          (ii) invite state agencies, individuals, and organizations concerned with the tax credit
128     under review to provide testimony;
129          (iii) (A) invite the Governor's Office of Economic Development to present a summary
130     and analysis of the information for each tax credit regarding which the Governor's Office of
131     Economic Development is required to make a report under this chapter; and
132          (B) invite the Office of the Legislative Fiscal Analyst to present a summary and
133     analysis of the information for each tax credit regarding which the Office of the Legislative
134     Fiscal Analyst is required to make a report under this chapter;
135          (iv) ensure that the committee's recommendations described in this section include an
136     evaluation of:
137          (A) the cost of the tax credit to the state;
138          (B) the purpose and effectiveness of the tax credit; and
139          (C) the extent to which the state benefits from the tax credit; and
140          (v) undertake other review efforts as determined by the committee chairs or as
141     otherwise required by law.
142          (3) (a) On or before November 30, 2017, and every three years after 2017, the
143     committee shall conduct the review required under Subsection (2) of the tax credits allowed
144     under the following sections:
145          (i) Section 59-10-1004;
146          (ii) Section 59-10-1010;
147          (iii) Section 59-10-1015;
148          (iv) Section 59-10-1025;

149          (v) Section 59-10-1027;
150          (vi) Section 59-10-1031;
151          (vii) Section 59-10-1032;
152          (viii) Section 59-10-1035;
153          (ix) Section 59-10-1104;
154          (x) Section 59-10-1105; and
155          (xi) Section 59-10-1108.
156          (b) On or before November 30, 2018, and every three years after 2018, the committee
157     shall conduct the review required under Subsection (2) of the tax credits allowed under the
158     following sections:
159          (i) Section 59-10-1005;
160          (ii) Section 59-10-1006;
161          (iii) Section 59-10-1012;
162          (iv) Section 59-10-1013;
163          (v) Section 59-10-1022;
164          (vi) Section 59-10-1023;
165          (vii) Section 59-10-1028;
166          (viii) Section 59-10-1034;
167          (ix) Section 59-10-1037; and
168          (x) Section 59-10-1107.
169          (c) On or before November 30, 2019, and every three years after 2019, the committee
170     shall conduct the review required under Subsection (2) of the tax credits allowed under the
171     following sections:
172          (i) Section 59-10-1007;
173          (ii) Section 59-10-1009;
174          (iii) Section 59-10-1014;
175          (iv) Section 59-10-1017;
176          (v) Section 59-10-1018;
177          (vi) Section 59-10-1019;
178          (vii) Section 59-10-1024;
179          (viii) Section 59-10-1029;

180          (ix) Section 59-10-1030;
181          (x) Section 59-10-1033;
182          (xi) Section 59-10-1036;
183          (xii) Section 59-10-1106; and
184          (xiii) Section 59-10-1111.
185          (d) (i) In addition to the reviews described in this Subsection (3), the committee shall
186     conduct a review of a tax credit described in this chapter that is enacted on or after January 1,
187     2017.
188          (ii) [The] Except as provided in Subsection (3)(d)(iii), the committee shall complete a
189     review described in [this] Subsection (3)(d)(i) three years after the effective date of the tax
190     credit and every three years after the initial review date.
191          (iii) The committee shall complete a review described in Subsection (3)(d)(i) for the
192     tax credit described in Section 59-10-1041:
193          (A) two years after the effective date of the tax credit; and
194          (B) if the tax credit remains in effect, every three years after the date described in
195     Subsection (3)(d)(iii)(A).
196          Section 4. Section 59-10-1041 is enacted to read:
197          59-10-1041. Nonrefundable tax credit for paid family and medical leave.
198          (1) As used in this section:
199          (a) "Federal employer tax credit for paid family and medical leave" means the amount
200     of the general business credit a taxpayer is allowed to claim for a taxable year under Section
201     45S, Internal Revenue Code.
202          (b) "General business credit" means the business credit described in Section 38,
203     Internal Revenue Code.
204          (2) For a taxable year beginning on or after January 1, 2018, but beginning on or before
205     December 31, 2019, a taxpayer may claim a nonrefundable tax credit equal to 5% of the federal
206     employer tax credit for paid family and medical leave.
207          (3) A taxpayer may carry forward for five years the amount of the tax credit described
208     in this section that exceeds the taxpayer's liability.