1     
TAX CREDIT FOR TELECOMMUTING

2     
2020 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Jacob L. Anderegg

5     
House Sponsor: ____________

6     

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
23     

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.