2
3
4
5
6
7 LONG TITLE
8 General Description:
9 This bill creates a child tax credit.
10 Highlighted Provisions:
11 This bill:
12 ▸ creates a refundable child tax credit; and
13 ▸ provides for apportionment of the child tax credit.
14 Money Appropriated in this Bill:
15 None
16 Other Special Clauses:
17 This bill provides retrospective operation.
18 Utah Code Sections Affected:
19 ENACTS:
20 59-10-1102.1, Utah Code Annotated 1953
21 59-10-1114, Utah Code Annotated 1953
22
23 Be it enacted by the Legislature of the state of Utah:
24 Section 1. Section 59-10-1102.1 is enacted to read:
25 59-10-1102.1. Apportionment of tax credit.
26 A nonresident individual or a part-year resident individual who claims a tax credit in
27 accordance with Section 59-10-1114 may claim only an apportioned amount of the tax credit
28 equal to the product of:
29 (1) the state income tax percentage for the nonresident individual or the state income
30 tax percentage for the part-year resident individual; and
31 (2) the amount of the tax credit that the nonresident individual or the part-year resident
32 individual would have been allowed to claim but for the apportionment requirement of this
33 section.
34 Section 2. Section 59-10-1114 is enacted to read:
35 59-10-1114. Refundable child tax credit.
36 (1) As used in this section:
37 (a) "Federal child tax credit" means the federal child tax credit described in Section 24,
38 Internal Revenue Code, including the refundable portion of the child tax credit.2-6(c)
39 (b) "Joint filing status" means the same as that term is defined in Section 59-10-1018.
40 (c) "Qualifying child" means an individual:
41 (i) with respect to whom the qualifying claimant is allowed to claim a tax credit under
42 Section 24, Internal Revenue Code, on the qualifying claimant's federal individual income tax
43 return for the taxable year; and
44 (ii) who is younger than six years old on the last day of the claimant's taxable year.
45 (d) "Qualifying claimant" means a claimant who:
46 (i) qualifies for and claims the federal child tax credit during the previous taxable year;
47 and
48 (ii) (A) if the claimant has a filing status other than a joint filing status, has adjusted
49 gross income of $75,000 or less; or
50 (B) if the claimant has a joint filing status, has adjusted gross income of $85,000 or
51 less.
52 (2) Subject to Section 59-10-1102.1, a qualifying claimant may claim a refundable
53 child tax credit equal to a percentage of the federal child tax credit that the qualifying claimant
54 was entitled to claim on a federal income tax return in the previous taxable year for each
55 qualifying child as follows:
56 (a) if the federal child tax credit for the previous taxable year is equal to or greater than
57 the federal child tax credit amount in a taxable year beginning on or after January 1, 2021, and
58 beginning before January 1, 2022, for a child younger than six years old:
59 (i) for a qualifying claimant with a filing status other than a joint filing status:
60 (A) whose adjusted gross income is $25,000 or less, 30%;
61 (B) whose adjusted gross income is more than $25,000 and no more than $50,000,
62 15%; and
63 (C) whose adjusted gross income is more than $50,000 and no more than $75,000, 5%;
64 and
65 (ii) for a qualifying claimant with a joint filing status:
66 (A) whose adjusted gross income is $35,000 or less, 30%;
67 (B) whose adjusted gross income is more than $35,000 and no more than $60,000,
68 15%; and
69 (C) whose adjusted gross income is more than $60,000 and no more than $85,000, 5%;
70 or
71 (b) if the federal child tax credit for the previous taxable year is less than the federal
72 child tax credit amount in a taxable year beginning on or after January 1, 2021, and beginning
73 before January 1, 2022, for a child younger than six years old:
74 (i) for a qualifying claimant with a filing status other than a joint filing status:
75 (A) whose adjusted gross income is $25,000 or less, 60%;
76 (B) whose adjusted gross income is more than $25,000 and no more than $50,000,
77 30%; and
78 (C) whose adjusted gross income is more than $50,000 and no more than $75,000,
79 10%; and
80 (ii) for a qualifying claimant with a joint filing status:
81 (A) whose adjusted gross income is $35,000 or less, 60%;
82 (B) whose adjusted gross income is more than $35,000 and no more than $60,000,
83 30%; and
84 (C) whose adjusted gross income is more than $60,000 and no more than $85,000,
85 10%.
86 Section 3. Retrospective operation.
87 This bill has retrospective operation for a taxable year beginning on or after January 1,
88 2023.