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7 LONG TITLE
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
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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.