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7 LONG TITLE
8 General Description:
9 This bill enacts provisions related to nonrefundable income tax credits.
10 Highlighted Provisions:
11 This bill:
12 ▸ creates a nonrefundable income tax credit for employers that employ
13 telecommuters; and
14 ▸ defines terms.
15 Money Appropriated in this Bill:
16 None
17 Other Special Clauses:
18 None
19 Utah Code Sections Affected:
20 ENACTS:
21 59-7-625, Utah Code Annotated 1953
22 59-10-1041, Utah Code Annotated 1953
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24 Be it enacted by the Legislature of the state of Utah:
25 Section 1. Section 59-7-625 is enacted to read:
26 59-7-625. Nonrefundable tax credit for employing a telecommuter.
27 (1) As used in this section, "telecommuter" means an individual who:
28 (a) is employed by an employer in the state;
29 (b) worked for the employer at least 35 hours per week for no less than 45 of the 52
30 weeks in the preceding taxable year; and
31 (c) worked from the individual's home an average of three or more days per week
32 during the time period described in Subsection (1)(b).
33 (2) A corporation may claim a nonrefundable tax credit as provided in this section
34 against a tax under this chapter if the corporation employs a telecommuter.
35 (3) A tax credit under this section is equal to $50 for each telecommuter employed by
36 the corporation.
37 (4) For each telecommuter for whom a tax credit is claimed under this section, a
38 corporation shall retain the telecommuter's:
39 (a) name;
40 (b) taxpayer identification number;
41 (c) last known address;
42 (d) start date for the employment; and
43 (e) documentation establishing that the telecommuter met the requirements of
44 Subsection (1).
45 (5) A corporation shall provide the information described in Subsection (4) to the
46 commission at the request of the commission.
47 (6) A corporation may carry forward a tax credit under this section for a period that
48 does not exceed the next five taxable years if:
49 (a) the corporation is allowed to claim a tax credit under this section for a taxable year;
50 and
51 (b) the amount of the tax credit exceeds the corporation's tax liability under this chapter
52 for that taxable year.
53 Section 2. Section 59-10-1041 is enacted to read:
54 59-10-1041. Nonrefundable tax credit for employing a telecommuter.
55 (1) As used in this section, "telecommuter" means an individual who:
56 (a) is employed by an employer in the state;
57 (b) worked for the employer at least 35 hours per week for no less than 45 of the 52
58 weeks in the preceding taxable year; and
59 (c) worked from the individual's home an average of three or more days per week
60 during the time period described in Subsection (1)(b).
61 (2) A claimant, estate, or trust may claim a nonrefundable tax credit as provided in this
62 section against a tax under this chapter if the claimant, estate, or trust employs a telecommuter.
63 (3) A tax credit under this section is equal to $50 for each telecommuter employed by
64 the claimant, estate, or trust.
65 (4) For each telecommuter for whom a tax credit is claimed under this section, a
66 claimant, estate, or trust shall retain the telecommuter's:
67 (a) name;
68 (b) taxpayer identification number;
69 (c) last known address;
70 (d) start date for the employment; and
71 (e) documentation establishing that the telecommuter met the requirements of
72 Subsection (1).
73 (5) A claimant, estate, or trust shall provide the information described in Subsection
74 (4) to the commission at the request of the commission.
75 (6) A claimant, estate, or trust may carry forward a tax credit under this section for a
76 period that does not exceed the next five taxable years if:
77 (a) the claimant, estate, or trust is allowed to claim a tax credit under this section for a
78 taxable year; and
79 (b) the amount of the tax credit exceeds the claimant, estate, or trust's tax liability
80 under this chapter for that taxable year.