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     Committee Note:
9          The Revenue and Taxation Interim Committee recommended this bill.
10               Legislative Vote:     14 voting for     0 voting against     5 absent
11     General Description:
12          This bill provides for the repeal of the corporate Achieving a Better Life Experience
13     Program income tax credit.
14     Highlighted Provisions:
15          This bill:
16          ▸     provides that a corporate contributor to an Achieving a Better Life Experience
17     Program account may claim the income tax credit for the 2020 taxable year only;
18     and
19          ▸     schedules the repeal of the corporate Achieving a Better Life Experience Program
20     income tax credit.
21     Money Appropriated in this Bill:
22          None
23     Other Special Clauses:
24          This bill provides retrospective operation.
25     Utah Code Sections Affected:
26     AMENDS:
27          59-7-620, as last amended by Laws of Utah 2017, Chapter 222
28          63I-2-259, as last amended by Laws of Utah 2018, Second Special Session, Chapter 6
29     

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