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7 LONG TITLE
8 General Description:
9 This bill modifies the income tax code by amending provisions relating to income tax
10 rates and tax credit calculations.
11 Highlighted Provisions:
12 This bill:
13 ▸ amends the corporate franchise and income tax rate;
14 ▸ amends the individual income tax rate;
15 ▸ amends the calculations of certain tax credits to match the income tax rates; and
16 ▸ makes technical changes.
17 Money Appropriated in this Bill:
18 None
19 Other Special Clauses:
20 This bill provides a special effective date.
21 Utah Code Sections Affected:
22 AMENDS:
23 59-7-104, as last amended by Laws of Utah 2019, Chapter 418
24 59-7-201, as last amended by Laws of Utah 2018, Chapter 456
25 59-7-610, as last amended by Laws of Utah 2019, Chapter 247
26 59-7-620, as last amended by Laws of Utah 2017, Chapter 222
27 59-10-104, as last amended by Laws of Utah 2018, Chapter 456
28 59-10-1007, as last amended by Laws of Utah 2019, Chapter 247
29 59-10-1017, as last amended by Laws of Utah 2017, Chapter 389
30 59-10-1017.1, as enacted by Laws of Utah 2017, Chapter 389
31 59-10-1022, as enacted by Laws of Utah 2008, Chapter 389
32 59-10-1023, as enacted by Laws of Utah 2008, Chapter 389
33 59-10-1028, as last amended by Laws of Utah 2012, Chapter 399
34 59-10-1035, as last amended by Laws of Utah 2017, Chapter 222
35 59-10-1036, as enacted by Laws of Utah 2016, Chapter 55
36
37 Be it enacted by the Legislature of the state of Utah:
38 Section 1. Section 59-7-104 is amended to read:
39 59-7-104. Tax -- Minimum tax.
40 (1) Each domestic and foreign corporation, except a corporation that is exempt under
41 Section 59-7-102, shall pay an annual tax to the state based on the corporation's Utah taxable
42 income for the taxable year for the privilege of exercising the corporation's corporate franchise,
43 as defined in Section 59-7-101, or for the privilege of doing business, as defined in Section
44 59-7-101, in the state.
45 (2) The tax shall be [
46 (3) The minimum tax a corporation shall pay under this chapter is $100.
47 Section 2. Section 59-7-201 is amended to read:
48 59-7-201. Tax -- Minimum tax.
49 (1) There is imposed upon each corporation, except a corporation that is exempt under
50 Section 59-7-102, a tax upon the corporation's Utah taxable income for the taxable year that is
51 derived from sources within this state other than income for any period that the corporation is
52 required to include in the corporation's tax base under Section 59-7-104.
53 (2) The tax imposed by Subsection (1) shall be [
54 taxable income.
55 (3) In no case shall the tax be less than $100.
56 Section 3. Section 59-7-610 is amended to read:
57 59-7-610. Recycling market development zones tax credits.
58 (1) Subject to other provisions of this section, a taxpayer that is a business operating in
59 a recycling market development zone as defined in Section 63N-2-402 may claim the following
60 nonrefundable tax credits:
61 (a) a tax credit [
62 59-7-104(2) and the purchase price paid for machinery and equipment used directly in:
63 (i) commercial composting; or
64 (ii) manufacturing facilities or plant units that:
65 (A) manufacture, process, compound, or produce recycled items of tangible personal
66 property for sale; or
67 (B) reduce or reuse postconsumer waste material; and
68 (b) a tax credit equal to the lesser of:
69 (i) 20% of net expenditures to third parties for rent, wages, supplies, tools, test
70 inventory, and utilities made by the taxpayer for establishing and operating recycling or
71 composting technology in Utah; and
72 (ii) $2,000.
73 (2) (a) To claim a tax credit described in Subsection (1), the taxpayer shall receive
74 from the Governor's Office of Economic Development a written certification, on a form
75 approved by the commission, that includes:
76 (i) a statement that the taxpayer is operating a business within the boundaries of a
77 recycling market development zone;
78 (ii) for claims of the tax credit described in Subsection (1)(a):
79 (A) the type of the machinery and equipment that the taxpayer purchased;
80 (B) the date that the taxpayer purchased the machinery and equipment;
81 (C) the purchase price for the machinery and equipment;
82 (D) the total purchase price for all machinery and equipment for which the taxpayer is
83 claiming a tax credit;
84 (E) a statement that the machinery and equipment are integral to the composting or
85 recycling process; and
86 (F) the amount of the taxpayer's tax credit; and
87 (iii) for claims of the tax credit described in Subsection (1)(b):
88 (A) the type of net expenditure that the taxpayer made to a third party;
89 (B) the date that the taxpayer made the payment to a third party;
90 (C) the amount that the taxpayer paid to each third party;
91 (D) the total amount that the taxpayer paid to all third parties;
92 (E) a statement that the net expenditures support the establishment and operation of
93 recycling or composting technology in Utah; and
94 (F) the amount of the taxpayer's tax credit.
95 (b) (i) The Governor's Office of Economic Development shall provide a taxpayer
96 seeking to claim a tax credit under Subsection (1) with a copy of the written certification.
97 (ii) The taxpayer shall retain a copy of the written certification for the same period of
98 time that a person is required to keep books and records under Section 59-1-1406.
99 (c) The Governor's Office of Economic Development shall submit to the commission
100 an electronic list that includes:
101 (i) the name and identifying information of each taxpayer to which the office issues a
102 written certification; and
103 (ii) for each taxpayer, the amount of each tax credit listed on the written certification.
104 (3) A taxpayer may not claim a tax credit under Subsection (1)(a), Subsection (1)(b), or
105 both that exceeds 40% of the taxpayer's state income tax liability as the tax liability is
106 calculated:
107 (a) for the taxable year in which the taxpayer made the purchases or payments;
108 (b) before any other tax credits the taxpayer may claim for the taxable year; and
109 (c) before the taxpayer claiming a tax credit authorized by this section.
110 (4) The commission shall make rules governing what information a taxpayer shall file
111 with the commission to verify the entitlement to and amount of a tax credit.
112 (5) Except as provided in Subsections (6) through (8), a taxpayer may carry forward, to
113 the next three taxable years, the amount of the tax credit that exceeds the taxpayer's income tax
114 liability for the taxable year.
115 (6) A taxpayer may not claim or carry forward a tax credit described in Subsection
116 (1)(a) in a taxable year during which the taxpayer claims or carries forward a tax credit under
117 Section 63N-2-213.
118 (7) A taxpayer may not claim or carry forward a tax credit described in Subsection
119 (1)(b) in a taxable year during which the taxpayer claims or carries forward a tax credit under
120 Section 63N-2-213.
121 (8) A taxpayer may not claim or carry forward a tax credit under this section for a
122 taxable year during which the taxpayer claims the targeted business income tax credit under
123 Section 59-7-624.
124 Section 4. Section 59-7-620 is amended to read:
125 59-7-620. Nonrefundable tax credit for contribution to state Achieving a Better
126 Life Experience Program account.
127 (1) As used in this section:
128 (a) "Account" means an account in a qualified ABLE program where the designated
129 beneficiary of the account is a resident of this state.
130 (b) "Contributor" means a corporation that:
131 (i) makes a contribution to an account; and
132 (ii) receives a statement from the qualified ABLE program itemizing the contribution.
133 (c) "Designated beneficiary" means the same as that term is defined in 26 U.S.C. Sec.
134 529A.
135 (d) "Qualified ABLE program" means the same as that term is defined in Section
136 35A-12-102.
137 (2) A contributor to an account may claim a nonrefundable tax credit as provided in
138 this section.
139 (3) Subject to the other provisions of this section, the tax credit is equal to the product
140 of:
141 (a) [
142 (b) the total amount of contributions:
143 (i) the contributor makes for the taxable year; and
144 (ii) for which the contributor receives a statement from the qualified ABLE program
145 itemizing the contributions.
146 (4) A contributor may not claim a tax credit under this section:
147 (a) for an amount of excess contribution to an account that is returned to the
148 contributor; or
149 (b) with respect to an amount the contributor deducts on a federal income tax return.
150 (5) A tax credit under this section may not be carried forward or carried back.
151 Section 5. Section 59-10-104 is amended to read:
152 59-10-104. Tax basis -- Tax rate -- Exemption.
153 (1) A tax is imposed on the state taxable income of a resident individual as provided in
154 this section.
155 (2) For purposes of Subsection (1), for a taxable year, the tax is an amount equal to the
156 product of:
157 (a) the resident individual's state taxable income for that taxable year; and
158 (b) [
159 (3) This section does not apply to a resident individual exempt from taxation under
160 Section 59-10-104.1.
161 Section 6. Section 59-10-1007 is amended to read:
162 59-10-1007. Recycling market development zones tax credits.
163 (1) Subject to other provisions of this section, a claimant, estate, or trust in a recycling
164 market development zone as defined in Section 63N-2-402 may claim the following
165 nonrefundable tax credits:
166 (a) a tax credit [
167 59-10-104(2) and the purchase price paid for machinery and equipment used directly in:
168 (i) commercial composting; or
169 (ii) manufacturing facilities or plant units that:
170 (A) manufacture, process, compound, or produce recycled items of tangible personal
171 property for sale; or
172 (B) reduce or reuse postconsumer waste material; and
173 (b) a tax credit equal to the lesser of:
174 (i) 20% of net expenditures to third parties for rent, wages, supplies, tools, test
175 inventory, and utilities made by the claimant, estate, or trust for establishing and operating
176 recycling or composting technology in Utah; and
177 (ii) $2,000.
178 (2) (a) To claim a tax credit described in Subsection (1), the claimant, estate, or trust
179 shall receive from the Governor's Office of Economic Development a written certification, on a
180 form approved by the commission, that includes:
181 (i) a statement that the claimant, estate, or trust is operating within the boundaries of a
182 recycling market development zone;
183 (ii) for claims of the tax credit described in Subsection (1)(a):
184 (A) the type of the machinery and equipment that the claimant, estate, or trust
185 purchased;
186 (B) the date that the claimant, estate, or trust purchased the machinery and equipment;
187 (C) the purchase price for the machinery and equipment;
188 (D) the total purchase price for all machinery and equipment for which the claimant,
189 estate, or trust is claiming a tax credit;
190 (E) the amount of the claimant's, estate's, or trust's tax credit; and
191 (F) a statement that the machinery and equipment are integral to the composting or
192 recycling process; and
193 (iii) for claims of the tax credit described in Subsection (1)(b):
194 (A) the type of net expenditure that the claimant, estate, or trust made to a third party;
195 (B) the date that the claimant, estate, or trust made the payment to a third party;
196 (C) the amount that the claimant, estate, or trust paid to each third party;
197 (D) the total amount that the claimant, estate, or trust paid to all third parties;
198 (E) a statement that the net expenditures support the establishment and operation of
199 recycling or composting technology in Utah; and
200 (F) the amount of the claimant's, estate's, or trust's tax credit.
201 (b) (i) The Governor's Office of Economic Development shall provide a claimant,
202 estate, or trust seeking to claim a tax credit under Subsection (1) with a copy of the written
203 certification.
204 (ii) The claimant, estate, or trust shall retain a copy of the written certification for the
205 same period of time that a person is required to keep books and records under Section
206 59-1-1406.
207 (c) The Governor's Office of Economic Development shall submit to the commission
208 an electronic list that includes:
209 (i) the name and identifying information of each claimant, estate, or trust to which the
210 office issues a written certification; and
211 (ii) for each claimant, estate, or trust, the amount of each tax credit listed on the written
212 certification.
213 (3) A claimant, estate, or trust may not claim a tax credit under Subsection (1)(a),
214 Subsection (1)(b), or both that exceeds 40% of the claimant's, estate's, or trust's state income
215 tax liability as the tax liability is calculated:
216 (a) for the taxable year in which the claimant, estate, or trust made the purchases or
217 payments;
218 (b) before any other tax credits the claimant, estate, or trust may claim for the taxable
219 year; and
220 (c) before the claimant, estate, or trust claiming a tax credit authorized by this section.
221 (4) The commission shall make rules governing what information a claimant, estate, or
222 trust shall file with the commission to verify the entitlement to and amount of a tax credit.
223 (5) Except as provided in Subsections (6) through (8), a claimant, estate, or trust may
224 carry forward, to the next three taxable years, the amount of the tax credit that exceeds the
225 taxpayer's income tax liability for the taxable year.
226 (6) A claimant, estate, or trust may not claim or carry forward a tax credit described in
227 Subsection (1)(a) in a taxable year during which the claimant, estate, or trust claims or carries
228 forward a tax credit under Section 63N-2-213.
229 (7) A claimant, estate, or trust may not claim a tax credit described in Subsection (1)(b)
230 in a taxable year during which the claimant, estate, or trust claims or carries forward a tax
231 credit under Section 63N-2-213.
232 (8) A claimant, estate, or trust may not claim or carry forward a tax credit available
233 under this section for a taxable year during which the claimant, estate, or trust claims the
234 targeted business income tax credit under Section 59-10-1112.
235 Section 7. Section 59-10-1017 is amended to read:
236 59-10-1017. Utah Educational Savings Plan tax credit.
237 (1) As used in this section:
238 (a) "Account owner" means the same as that term is defined in Section 53B-8a-102.
239 (b) "Grantor trust" means the same as that term is defined in Section 53B-8a-102.5.
240 (c) "Higher education costs" means the same as that term is defined in Section
241 53B-8a-102.5.
242 (d) "Maximum amount of a qualified investment for the taxable year" means, for a
243 taxable year, the product of [
244 (i) subject to Subsection (1)(d)(iii), for a claimant, estate, or trust that is an account
245 owner, if that claimant, estate, or trust is other than [
246 who file a single return jointly, the maximum amount of a qualified investment:
247 (A) listed in Subsection 53B-8a-106(1)(e)(ii); and
248 (B) increased or kept for that taxable year in accordance with Subsections
249 53B-8a-106(1)(f) and (g);
250 (ii) subject to Subsection (1)(d)(iii), for claimants who are [
251 account owners who file a single return jointly, the maximum amount of a qualified
252 investment:
253 (A) listed in Subsection 53B-8a-106(1)(e)(iii); and
254 (B) increased or kept for that taxable year in accordance with Subsections
255 53B-8a-106(1)(f) and (g); or
256 (iii) for a grantor trust:
257 (A) if the owner of the grantor trust has a single filing status or head of household
258 filing status as defined in Section 59-10-1018, the amount described in Subsection (1)(d)(i); or
259 (B) if the owner of the grantor trust has a joint filing status as defined in Section
260 59-10-1018, the amount described in Subsection (1)(d)(ii).
261 (e) "Owner of the grantor trust" means the same as that term is defined in Section
262 53B-8a-102.5.
263 (f) "Qualified investment" means the same as that term is defined in Section
264 53B-8a-102.5.
265 (2) Except as provided in Section 59-10-1002.2 and subject to the other provisions of
266 this section, a claimant, estate, or trust that is an account owner may claim a nonrefundable tax
267 credit equal to the product of:
268 (a) the amount of a qualified investment made:
269 (i) during the taxable year; and
270 (ii) into an account owned by the claimant, estate, or trust; and
271 (b) [
272 (3) A claimant, estate, or trust, or a person other than the claimant, estate, or trust, may
273 make a qualified investment described in Subsection (2).
274 (4) A claimant, estate, or trust that is an account owner may not claim a tax credit
275 under this section with respect to any portion of a qualified investment described in Subsection
276 (2) that a claimant, estate, trust, or person described in Subsection (3) deducts on a federal
277 income tax return.
278 (5) A tax credit under this section may not exceed the maximum amount of a qualified
279 investment for the taxable year.
280 (6) A claimant, estate, or trust that is an account owner may not carry forward or carry
281 back the tax credit under this section.
282 (7) A claimant, estate, or trust may claim a tax credit under this section in addition to
283 the tax credit described in Section 59-10-1017.1.
284 Section 8. Section 59-10-1017.1 is amended to read:
285 59-10-1017.1. Student Prosperity Savings Program tax credit.
286 (1) As used in this section, "qualified donation" means an amount donated, in
287 accordance with Section 53B-8a-203, to the Student Prosperity Savings Program created in
288 Section 53B-8a-202.
289 (2) A claimant, estate, or trust may claim a nonrefundable tax credit for a qualified
290 donation.
291 (3) The tax credit equals the product of:
292 (a) the qualified donation; and
293 (b) [
294 (4) A claimant, estate, or trust may not claim a tax credit under this section with
295 respect to any portion of a qualified donation that a claimant, estate, or trust deducts on a
296 federal income tax return.
297 (5) A claimant, estate, or trust may not carry forward or carry back the portion of the
298 tax credit allowed by this section that exceeds the claimant's, estate's, or trust's tax liability for
299 the taxable year in which the claimant, estate, or trust claims the tax credit.
300 (6) A claimant, estate, or trust may claim a tax credit under this section in addition to
301 the tax credit described in Section 59-10-1017.
302 Section 9. Section 59-10-1022 is amended to read:
303 59-10-1022. Nonrefundable tax credit for capital gain transactions.
304 (1) As used in this section:
305 (a) (i) "Capital gain transaction" means a transaction that results in a:
306 (A) short-term capital gain; or
307 (B) long-term capital gain.
308 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
309 commission may by rule define the term "transaction."
310 (b) "Commercial domicile" means the principal place from which the trade or business
311 of a Utah small business corporation is directed or managed.
312 (c) "Long-term capital gain" [
313 1222, Internal Revenue Code.
314 (d) "Qualifying stock" means stock that is:
315 (i) (A) common; or
316 (B) preferred;
317 (ii) as defined by the commission by rule made in accordance with Title 63G, Chapter
318 3, Utah Administrative Rulemaking Act, originally issued to:
319 (A) a claimant, estate, or trust; or
320 (B) a partnership if the claimant, estate, or trust that claims a tax credit under this
321 section:
322 (I) was a partner on the day on which the stock was issued; and
323 (II) remains a partner until the last day of the taxable year for which the claimant,
324 estate, or trust claims a tax credit under this section; and
325 (iii) issued:
326 (A) by a Utah small business corporation;
327 (B) on or after January 1, 2008; and
328 (C) for:
329 (I) money; or
330 (II) other property, except for stock or securities.
331 (e) "Short-term capital gain" [
332 1222, Internal Revenue Code.
333 (f) (i) "Utah small business corporation" means a corporation that:
334 (A) except as provided in Subsection (1)(f)(ii), is a small business corporation as
335 defined in Section 1244(c)(3), Internal Revenue Code;
336 (B) except as provided in Subsection (1)(f)(iii), meets the requirements of Section
337 1244(c)(1)(C), Internal Revenue Code; and
338 (C) has its commercial domicile in this state.
339 (ii) The dollar amount listed in Section 1244(c)(3)(A) is considered to be $2,500,000.
340 (iii) The phrase "the date the loss on such stock was sustained" in Sections
341 1244(c)(1)(C) and 1244(c)(2), Internal Revenue Code, is considered to be "the last day of the
342 taxable year for which the claimant, estate, or trust claims a tax credit under this section."
343 (2) [
344 trust that meets the requirements of Subsection (3) may claim a nonrefundable tax credit equal
345 to the product of:
346 (a) the total amount of the claimant's, estate's, or trust's short-term capital gain or
347 long-term capital gain on a capital gain transaction that occurs on or after January 1, 2008; and
348 (b) [
349 (3) For purposes of Subsection (2), a claimant, estate, or trust may claim the
350 nonrefundable tax credit allowed by Subsection (2) if:
351 (a) 70% or more of the gross proceeds of the capital gain transaction are expended:
352 (i) to purchase qualifying stock in a Utah small business corporation; and
353 (ii) within a 12-month period after the day on which the capital gain transaction occurs;
354 and
355 (b) prior to the purchase of the qualifying stock described in Subsection (3)(a)(i), the
356 claimant, estate, or trust did not have an ownership interest in the Utah small business
357 corporation that issued the qualifying stock.
358 (4) A claimant, estate, or trust may not carry forward or carry back a tax credit under
359 this section.
360 (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
361 commission may make rules:
362 (a) defining the term "gross proceeds"; and
363 (b) prescribing the circumstances under which a claimant, estate, or trust has an
364 ownership interest in a Utah small business corporation.
365 Section 10. Section 59-10-1023 is amended to read:
366 59-10-1023. Nonrefundable tax credit for amounts paid under a health benefit
367 plan.
368 (1) As used in this section:
369 (a) "Claimant with dependents" means a claimant:
370 (i) regardless of the claimant's filing status for purposes of filing a federal individual
371 income tax return for the taxable year; and
372 (ii) who claims one or more dependents under Section 151, Internal Revenue Code, or
373 who claims a tax credit under Section 24, Internal Revenue Code, as allowed on the claimant's
374 federal individual income tax return for the taxable year.
375 (b) "Eligible insured individual" means:
376 (i) the claimant who is insured under a health benefit plan;
377 (ii) the spouse of the claimant described in Subsection (1)(b)(i) if:
378 (A) the claimant files a single return jointly under this chapter with the claimant's
379 spouse for the taxable year; and
380 (B) the spouse is insured under the health benefit plan described in Subsection
381 (1)(b)(i); or
382 (iii) a dependent of the claimant described in Subsection (1)(b)(i) if:
383 (A) the claimant claims the dependent under Section 151, Internal Revenue Code, as
384 allowed on the claimant's federal individual income tax return for the taxable year; and
385 (B) the dependent is insured under the health benefit plan described in Subsection
386 (1)(b)(i).
387 (c) "Excluded expenses" means an amount a claimant pays for insurance offered under
388 a health benefit plan for a taxable year if:
389 (i) the claimant claims a tax credit for that amount under Section 35, Internal Revenue
390 Code:
391 (A) on the claimant's federal individual income tax return for the taxable year; and
392 (B) with respect to an eligible insured individual;
393 (ii) the claimant deducts that amount under Section 162 or 213, Internal Revenue
394 Code:
395 (A) on the claimant's federal individual income tax return for the taxable year; and
396 (B) with respect to an eligible insured individual; or
397 (iii) the claimant excludes that amount from gross income under Section 106 or 125,
398 Internal Revenue Code, with respect to an eligible insured individual.
399 (d) (i) "Health benefit plan" [
400 31A-1-301.
401 (ii) "Health benefit plan" does not include equivalent self-insurance as defined by the
402 Insurance Department by rule made in accordance with Title 63G, Chapter 3, Utah
403 Administrative Rulemaking Act.
404 (e) "Joint claimant with no dependents" means [
405 (i) file a single return jointly under this chapter for the taxable year; and
406 (ii) do not claim a dependent under Section 151, Internal Revenue Code, on the
407 [
408 (f) "Single claimant with no dependents" means:
409 (i) a single individual who:
410 (A) files a single federal individual income tax return for the taxable year; and
411 (B) does not claim a dependent under Section 151, Internal Revenue Code, on the
412 single individual's federal individual income tax return for the taxable year;
413 (ii) a head of household:
414 (A) as defined in Section 2(b), Internal Revenue Code, who files a single federal
415 individual income tax return for the taxable year; and
416 (B) who does not claim a dependent under Section 151, Internal Revenue Code, on the
417 head of household's federal individual income tax return for the taxable year; or
418 (iii) a married individual who:
419 (A) does not file a single federal individual income tax return jointly with that married
420 individual's spouse for the taxable year; and
421 (B) does not claim a dependent under Section 151, Internal Revenue Code, on that
422 married individual's federal individual income tax return for the taxable year.
423 (2) Subject to Subsection (3), and except as provided in Subsection (4), [
424
425 equal to the product of:
426 (a) the difference between:
427 (i) the total amount the claimant pays during the taxable year for:
428 (A) insurance offered under a health benefit plan; and
429 (B) an eligible insured individual; and
430 (ii) excluded expenses; and
431 (b) [
432 (3) The maximum amount of a tax credit described in Subsection (2) a claimant may
433 claim on a return for a taxable year is:
434 (a) for a single claimant with no dependents, $300;
435 (b) for a joint claimant with no dependents, $600; or
436 (c) for a claimant with dependents, $900.
437 (4) A claimant may not claim a tax credit under this section if the claimant is eligible to
438 participate in insurance offered under a health benefit plan maintained and funded in whole or
439 in part by:
440 (a) the claimant's employer; or
441 (b) another person's employer.
442 (5) A claimant may not carry forward or carry back a tax credit under this section.
443 Section 11. Section 59-10-1028 is amended to read:
444 59-10-1028. Nonrefundable tax credit for capital gain transactions on the
445 exchange of one form of legal tender for another form of legal tender.
446 (1) As used in this section:
447 (a) "Capital gain transaction" means a transaction that results in a:
448 (i) short-term capital gain; or
449 (ii) long-term capital gain.
450 (b) "Long-term capital gain" [
451 1222, Internal Revenue Code.
452 (c) "Long-term capital loss" [
453 1222, Internal Revenue Code.
454 (d) "Net capital gain" means the amount by which the sum of long-term capital gains
455 and short-term capital gains on a claimant's, estate's, or trust's transactions from exchanges
456 made for a taxable year of one form of legal tender for another form of legal tender exceeds the
457 sum of long-term capital losses and short-term capital losses on those transactions for that
458 taxable year.
459 (e) "Short-term capital loss" [
460 1222, Internal Revenue Code.
461 (f) "Short-term capital gain" [
462 1222, Internal Revenue Code.
463 (2) Except as provided in Section 59-10-1002.2, [
464
465 the product of:
466 (a) to the extent a net capital gain is included in taxable income, the amount of the
467 claimant's, estate's, or trust's net capital gain on capital gain transactions from exchanges made
468 on or after January 1, 2012, for a taxable year, of one form of legal tender for another form of
469 legal tender; and
470 (b) [
471 (3) A claimant, estate, or trust may not carry forward or carry back a tax credit under
472 this section.
473 (4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
474 commission may make rules to implement this section.
475 Section 12. Section 59-10-1035 is amended to read:
476 59-10-1035. Nonrefundable tax credit for contribution to state Achieving a Better
477 Life Experience Program account.
478 (1) As used in this section:
479 (a) "Account" means an account in a qualified ABLE program where the designated
480 beneficiary of the account is a resident of this state.
481 (b) "Contributor" means a claimant, estate, or trust that:
482 (i) makes a contribution to an account; and
483 (ii) receives a statement from the qualified ABLE program itemizing the contribution.
484 (c) "Designated beneficiary" means the same as that term is defined in 26 U.S.C. Sec.
485 529A.
486 (d) "Qualified ABLE program" means the same as that term is defined in Section
487 35A-12-102.
488 (2) A contributor to an account may claim a nonrefundable tax credit as provided in
489 this section.
490 (3) Subject to the other provisions of this section, the tax credit is equal to the product
491 of:
492 (a) [
493 (b) the total amount of contributions:
494 (i) the contributor makes for the taxable year; and
495 (ii) for which the contributor receives a statement from the qualified ABLE program
496 itemizing the contributions.
497 (4) A contributor may not claim a tax credit under this section:
498 (a) for an amount of excess contribution to an account that is returned to the
499 contributor; or
500 (b) with respect to an amount the contributor deducts on a federal income tax return.
501 (5) A tax credit under this section may not be carried forward or carried back.
502 Section 13. Section 59-10-1036 is amended to read:
503 59-10-1036. Nonrefundable tax credit for military survivor benefits.
504 (1) As used in this section:
505 (a) "Dependent child" means the same as that term is defined in 10 U.S.C. Sec. 1447.
506 (b) "Reserve components" means the same as that term is described in 10 U.S.C. Sec.
507 10101.
508 (c) "Surviving spouse" means the same as that term is defined in 10 U.S.C. Sec. 1447.
509 (d) "Survivor benefits" means the amount paid by the federal government in
510 accordance with 10 U.S.C. Secs. 1447 through 1455.
511 (2) A surviving spouse or dependent child may claim a nonrefundable tax credit for
512 survivor benefits if the benefits are paid due to:
513 (a) the death of a member of the armed forces or reserve components while on active
514 duty; or
515 (b) the death of a member of the reserve components that results from a
516 service-connected cause while performing inactive duty training.
517 (3) The tax credit described in Subsection (2) is equal to the product of:
518 (a) the amount of survivor benefits that the surviving spouse or dependent child
519 received during the taxable year; and
520 (b) [
521 (4) [
522 a tax credit described in Subsection (2)[
523 [
524 [
525 Section 14. Effective date.
526 This bill takes effect for a taxable year beginning on or after January 1, 2021.