Chief Sponsor: Kera Birkeland

Senate Sponsor: ____________


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; and
13          ▸     enacts a nonrefundable individual income tax credit that an eligible educator may
14     claim for certain out-of-pocket classroom expenses.
15     Money Appropriated in this Bill:
16          None
17     Other Special Clauses:
18          This bill provides a special effective date.
19     Utah Code Sections Affected:
20     ENACTS:
21          59-10-1046, Utah Code Annotated 1953

23     Be it enacted by the Legislature of the state of Utah:
24          Section 1. Section 59-10-1046 is enacted to read:
25          59-10-1046. Nonrefundable tax credit for out-of-pocket classroom expenses.
26          (1) As used in this section:
27          (a) "Classroom supply" means an item that is a book, supply, equipment, software, or

28     supplementary material, if the item is primarily used in a school while an eligible educator
29     provides one or more students:
30          (i) instructional services;
31          (ii) counseling services;
32          (iii) speech-language pathology services; or
33          (iv) a combination of two or more services described in Subsections (1)(a)(i) through
34     (iii).
35          (b) (i) "Eligible educator" means an individual:
36          (A) who is employed to work in a school; and
37          (B) whose primary function is to provide students instructional services, counseling
38     services, or speech-language pathology services.
39          (ii) "Eligible educator" includes an individual described in Subsection (1)(b)(i) who is
40     a paraprofessional.
41          (iii) "Eligible educator" does not include a substitute teacher.
42          (c) (i) "Out-of-pocket classroom expense" means an amount paid or incurred by an
43     eligible educator for:
44          (A) a classroom supply; or
45          (B) a student aid item that is provided to a student at school.
46          (ii) "Out-of-pocket classroom expense" does not include an amount that:
47          (A) the eligible educator deducts on the eligible educator's federal individual income
48     tax return as allowed by 26 U.S.C. Sec. 62(a)(2)(D); or
49          (B) is reimbursed by another person.
50          (d) "School" means a public or private entity located in the state that:
51          (i) is an elementary school or a secondary school; and
52          (ii) provides instruction for one or more of the grades kindergarten through 12.
53          (e) "Student aid item" means an item that is:
54          (i) food or a hygiene product; and
55          (ii) intended for students who an eligible educator determines do not have sufficient
56     access to food or hygiene products.
57          (2) For a taxable year beginning on or after January 1, 2023, a claimant who is an
58     eligible educator may claim a nonrefundable tax credit:

59          (a) as provided in this section; and
60          (b) in an amount equal to the eligible educator's out-of-pocket classroom expenses
61     during the taxable year.
62          (3) A tax credit under this section may not exceed $500 per eligible educator on a
63     return.
64          (4) A claimant may not carry forward or carry back a tax credit under this section.
65          Section 2. Effective date.
66          This bill takes effect on January 1, 2023.