Representative Tim Quinn proposes the following substitute bill:




Chief Sponsor: Jacob L. Anderegg

House Sponsor: Mike Winder


8     General Description:
9          This bill enacts a nonrefundable income tax credit for certain educator expenses.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     enacts a nonrefundable individual income tax credit that an eligible teacher may
14     claim for certain out-of-pocket classroom expenses; and
15          ▸     grants the State Tax Commission rulemaking authority.
16     Money Appropriated in this Bill:
17          None
18     Other Special Clauses:
19          None
20     Utah Code Sections Affected:
21     ENACTS:
22          59-10-1041, Utah Code Annotated 1953

24     Be it enacted by the Legislature of the state of Utah:
25          Section 1. Section 59-10-1041 is enacted to read:

26          59-10-1041. Refundable tax credit for out-of-pocket classroom expenses.
27          (1) As used in this section:
28          (a) "Classroom supply" means:
29          (i) a book;
30          (ii) computer equipment, including related software or services;
31          (iii) other equipment;
32          (iv) supplementary material; or
33          (v) other supplies.
34          (b) (i) "Eligible teacher" means an individual:
35          (A) who is employed to work in a school; and
36          (B) whose primary function is to provide instructional services to students or a
37     combination of instructional and counseling services to students.
38          (ii) "Eligible teacher" does not include a substitute teacher.
39          (c) (i) "Out-of-pocket classroom expense" means an amount paid or incurred by an
40     eligible teacher for a classroom supply, if the classroom supply is primarily used:
41          (A) in a classroom while the eligible teacher provides instructional services to students;
42          (B) while the eligible teacher provides counseling services to students at school; or
43          (C) a combination of the activities described in Subsections (1)(c)(i)(A) and (B).
44          (ii) "Out-of-pocket classroom expense" does not include an amount that:
45          (A) the claimant deducts on the claimant's federal individual income tax return as
46     allowed by 26 U.S.C. Sec. 62(a)(2)(D); or
47          (B) is reimbursed by another person.
48          (d) "School" means a public or private entity located in the state that:
49          (i) is an elementary school or a secondary school; and
50          (ii) provides instruction for one or more of the grades kindergarten through 12.
51          (2) For a taxable year beginning on or after January 1, 2021, a claimant who is an
52     eligible teacher may claim a nonrefundable tax credit:
53          (a) as provided in this section; and
54          (b) in an amount equal to the eligible teacher's out-of-pocket classroom expenses
55     during the taxable year.
56          (3) For a taxable year, a tax credit under this section may not exceed $500 per eligible

57     teacher on a return.
58          (4) A claimant may not carry forward or carry back a tax credit under this section.