1     
TAX CREDIT AMENDMENTS

2     
2019 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Brian S. King

5     
Senate Sponsor: Karen Mayne

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions related to the Tax Credit for Employment of Persons Who
10     Are Homeless Act.
11     Highlighted Provisions:
12          This bill:
13          ▸     defines terms;
14          ▸     establishes rulemaking authority for the Department of Workforce Services;
15          ▸     modifies a deadline for providing information required in a participation agreement;
16          ▸     modifies a deadline for determining whether an employer has met the requirements
17     of a participation agreement; and
18          ▸     makes technical changes.
19     Money Appropriated in this Bill:
20          None
21     Other Special Clauses:
22          None
23     Utah Code Sections Affected:
24     AMENDS:
25          35A-5-302, as enacted by Laws of Utah 2014, Chapter 315
26          35A-5-303, as enacted by Laws of Utah 2014, Chapter 315
27          35A-5-304, as enacted by Laws of Utah 2014, Chapter 315
28          35A-5-305, as enacted by Laws of Utah 2014, Chapter 315
29     

30     Be it enacted by the Legislature of the state of Utah:
31          Section 1. Section 35A-5-302 is amended to read:
32          35A-5-302. Definitions.
33          As used in this part:
34          (1) "Date of hire" means the date a person who is homeless first performs labor or
35     services for compensation for an employer.
36          (2) "Governmental entity" is as defined in Section 59-2-511.
37          (3) "Permanent housing, permanent supportive, or transitional facility" means a
38     facility:
39          (a) located within the state;
40          (b) that provides supervision of residents of the facility; and
41          (c) that is:
42          (i) a publicly or privately operated shelter:
43          (A) designed to provide temporary living accommodations, including a welfare hotel,
44     congregate shelter, or transitional housing for the mentally ill; and
45          (B) that receives federal homeless assistance funding distributed by the United States
46     Department of Housing and Urban Development; or
47          (ii) an emergency shelter that receives homeless assistance funding from a county, city,
48     or town.
49          (4) "Person who is homeless" means an individual whose primary nighttime residence
50     is [a permanent housing, permanent supportive, or transitional facility.]:
51          (a) a public or private place not designated for or ordinarily used as a regular sleeping
52     accommodation for an individual, including a car, park, abandoned building, bus station, train
53     station, airport, or camping ground; or
54          (b) a publicly or privately operated shelter designated to provide temporary living
55     arrangements, including a permanent housing, permanent supportive, or transitional facility.
56          (5) "Wage requirement" means that an employer pays a person who is homeless $4,000
57     or more in wages during a time period that:
58          (a) begins on the date of hire; and
59          (b) ends no later than two calendar quarters after the calendar quarter in which the date
60     of hire occurs.
61          Section 2. Section 35A-5-303 is amended to read:
62          35A-5-303. Application for tax credit certificate.
63          (1) An employer who employs a person who is homeless and seeks to receive a tax
64     credit certificate under this part shall file an application with the department with respect to
65     each person who is homeless that the employer employs.
66          (2) The application shall be on a form the department provides to the employer.
67          (3) The application shall require the employer to certify that:
68          (a) the person who [is homeless who] the employer employs:
69          (i) [on the date of hire, has a primary nighttime residence at a permanent housing,
70     permanent supportive, or transitional facility] met the definition of a person who is homeless
71     on the date of hire or at any time during the 60-day period immediately before the date of hire;
72          (ii) is an employee, and not an independent contractor, of the employer;
73          (iii) is legally eligible to work in the United States; and
74          (iv) has not worked for the employer for more than 40 hours during the 60-day period
75     immediately [preceding] before the date of hire; and
76          (b) the employer:
77          (i) complies with all state, federal, or local requirements related to the employment of
78     the person who is homeless; and
79          (ii) is not a governmental entity.
80          (4) The application:
81          (a) shall list, for each person who is homeless that the employer employs:
82          (i) the person's name;
83          (ii) the person's [Social Security] social security number; and
84          (iii) the person's current address;
85          (b) shall list the employer's federal employer identification number; and
86          (c) may require additional information as determined by the department.
87          (5) An employer shall provide documentation to the department to support the
88     certifications and other information the employer provides in the application described in this
89     section.
90          (6) If the department determines that, on the basis of the documentation and other
91     information the employer provides, the employer has satisfied the certification requirements of
92     Subsection (3) and provided the information described in Subsection (4), the department shall
93     enter into a participation agreement with the employer as provided in Section 35A-5-304 for
94     each person who is homeless who the employer employs.
95          (7) If the department determines that, on the basis of the documentation and other
96     information the employer provides, the employer has not satisfied the certification
97     requirements of Subsection (3) or provided the information described in Subsection (4), the
98     department:
99          (a) shall deny the application; or
100          (b) inform the employer that the documentation the employer provided is inadequate
101     and request the employer to submit new or additional documentation.
102          (8) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and
103     consistent with the provisions of this part, the department may make rules governing the
104     administration of the tax credit described in this part.
105          Section 3. Section 35A-5-304 is amended to read:
106          35A-5-304. Participation agreements.
107          (1) If the department enters into a participation agreement with an employer, the
108     participation agreement shall:
109          (a) be provided by the department; and
110          (b) establish the requirements the employer is required to meet to be eligible to receive
111     a tax credit certificate, including:
112          (i) requiring the employer to meet the certification requirements of Subsection
113     35A-5-303(3);
114          (ii) requiring the employer to provide written notice to the department [within 10 days
115     after the date] when the employer meets the wage requirement; and
116          (iii) requiring the employer to provide documentation or other information the
117     department requests:
118          (A) to establish the hours and dates that the person who is homeless works for the
119     employer; and
120          (B) to support the employer's eligibility to receive a tax credit certificate under this
121     part.
122          (2) An agreement under this section does constitute a right to receive a tax credit
123     certificate under this part.
124          Section 4. Section 35A-5-305 is amended to read:
125          35A-5-305. Tax credit certificate.
126          (1) An employer shall provide written notice to the department [within 10 days after
127     the date the employer meets the wage requirement] as provided in the participation agreement
128     described in Section 35A-5-304.
129          (2) The department shall determine whether an employer has met the requirements of
130     the participation agreement under Section 35A-5-304 to receive a tax credit certificate[:(a)]
131     after the employer provides the written notice described in Subsection (1) to the department[;
132     and].
133          [(b) no later than 60 days after the date that the employer provides the department
134     unemployment insurance wage information:]
135          [(i) for the person who is homeless;]
136          [(ii) as required by Subsection 35A-4-305(8); and]
137          [(iii) for each calendar quarter during which the employer pays wages to meet the wage
138     requirement.]
139          (3) Subject to the other provisions of this section, if the department determines that an
140     employer has met the requirements of the participation agreement under Section 35A-5-304 to
141     receive a tax credit certificate, the department may issue a tax credit certificate to the employer.
142          (4) A tax credit certificate under this section:
143          (a) shall list the amount of tax credit allowable for the taxable year in an amount that
144     does not exceed $2,000;
145          (b) shall list the name and federal employer number of the employer;
146          (c) shall list the name, Social Security identification number, and current address of the
147     person who is homeless with respect to whom the employer has met the wage requirement; and
148          (d) may include any other information required by the department.
149          (5) Subject to Subsections (6) and (7), the department shall issue tax credit certificates
150     under this section in the order that the department receives the written notice described in
151     Subsection (1).
152          (6) The department may not issue tax credit certificates that total more than $100,000
153     in a fiscal year.
154          (7) (a) Subject to Subsection (7)(b), if the department would have issued tax credit
155     certificates that total more than $100,000 in a fiscal year but for the limit provided in
156     Subsection (6), the department shall issue the tax credit certificates that exceed $100,000 in the
157     next fiscal year.
158          (b) If the department issues tax credit certificates in accordance with Subsection (7)(a):
159          (i) the tax credit certificates may not total more than $100,000; and
160          (ii) the department may not issue tax credit certificates for an amount that exceeds the
161     limit described in Subsection (7)(b)(i) in a future fiscal year.
162          (8) The department shall provide a copy of a tax credit certificate the department issues
163     under this section to the State Tax Commission.