1     
CORPORATE INCOME TAX CREDIT AMENDMENTS

2     
2020 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Stewart E. Barlow

5     
Senate Sponsor: Lincoln Fillmore

6     

7     LONG TITLE
8     General Description:
9          This bill provides for the repeal of the corporate Achieving a Better Life Experience
10     Program income tax credit.
11     Highlighted Provisions:
12          This bill:
13          ▸     provides that a corporate contributor to an Achieving a Better Life Experience
14     Program account may claim the income tax credit for the 2020 taxable year only;
15     and
16          ▸     schedules the repeal of the corporate Achieving a Better Life Experience Program
17     income tax credit.
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          59-7-620, as last amended by Laws of Utah 2017, Chapter 222
25          63I-2-259, as last amended by Laws of Utah 2018, Second Special Session, Chapter 6
26     

27     Be it enacted by the Legislature of the state of Utah:
28          Section 1. Section 59-7-620 is amended to read:
29          59-7-620. Nonrefundable tax credit for contribution to state Achieving a Better
30     Life Experience Program account.
31          (1) As used in this section:
32          (a) "Account" means an account in a qualified ABLE program where the designated
33     beneficiary of the account is a resident of this state.
34          (b) "Contributor" means a corporation that:
35          (i) makes a contribution to an account; and
36          (ii) receives a statement from the qualified ABLE program itemizing the contribution.
37          (c) "Designated beneficiary" means the same as that term is defined in 26 U.S.C. Sec.
38     529A.
39          (d) "Qualified ABLE program" means the same as that term is defined in Section
40     35A-12-102.
41          (2) [A] For a taxable year beginning on or after January 1, 2020, but beginning on or
42     before December 31, 2020, a contributor to an account may claim a nonrefundable tax credit as
43     provided in this section.
44          (3) Subject to the other provisions of this section, the tax credit is equal to the product
45     of:
46          (a) 5%; and
47          (b) the total amount of contributions:
48          (i) the contributor makes for the taxable year; and
49          (ii) for which the contributor receives a statement from the qualified ABLE program
50     itemizing the contributions.
51          (4) A contributor may not claim a tax credit under this section:
52          (a) for an amount of excess contribution to an account that is returned to the
53     contributor; or
54          (b) with respect to an amount the contributor deducts on a federal income tax return.
55          (5) A tax credit under this section may not be carried forward or carried back.
56          Section 2. Section 63I-2-259 is amended to read:
57          63I-2-259. Repeal dates -- Title 59.
58          [(1) Section 59-1-102 is repealed on May 14, 2019.]
59          [(2)] (1) In Section 59-2-926, the language that states "applicable" and "or
60     53F-2-301.5" is repealed July 1, 2023.
61          [(3) Subsection 59-2-1007(15) is repealed on December 31, 2018.]
62          (2) Section 59-7-620 is repealed December 31, 2021.
63          Section 3. Retrospective operation.
64          (1) Except as provided in Subsection (2), this bill has retrospective operation for a
65     taxable year beginning on or after January 1, 2020.
66          (2) The amendments to Section 63I-2-259 take effect on May 12, 2020.