1     
MODIFICATIONS TO MILITARY INCOME TAX

2     
2023 GENERAL SESSION

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STATE OF UTAH

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Chief Sponsor: Ann Millner

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House Sponsor: ____________

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7     LONG TITLE
8     General Description:
9          This bill enacts a military member income tax credit.
10     Highlighted Provisions:
11          This bill:
12          ▸     enacts a nonrefundable income tax credit for certain members of the armed forces
13     who are deployed on active military duty outside of the United States.
14     Money Appropriated in this Bill:
15          None
16     Other Special Clauses:
17          This bill provides a special effective date.
18     Utah Code Sections Affected:
19     ENACTS:
20          59-10-1046, Utah Code Annotated 1953
21     

22     Be it enacted by the Legislature of the state of Utah:
23          Section 1. Section 59-10-1046 is enacted to read:
24          59-10-1046. Nonrefundable tax credit for active duty military member.
25          (1) As used in this section:
26          (a) "Military pay" means compensation that relates to service in the armed forces.
27          (b) "Qualifying claimant" means a resident individual who:

28          (i) is deployed on active military duty for at least 300 consecutive days of the taxable
29     year outside of a state of the United States, the District of Columbia, or a possession of the
30     United States; and
31          (ii) does not have a spouse or dependent residing within a state of the United States, the
32     District of Columbia, or a possession of the United States.
33          (2) A qualifying claimant who receives military pay may claim a nonrefundable tax
34     credit equal to the product of:
35          (a) the percentage listed in Subsection 59-10-104(2); and
36          (b) the amount of military pay that is included in adjusted gross income on the
37     qualifying claimant's federal income tax return for the taxable year.
38          (3) A qualifying claimant may not carry forward or carry back the amount of a tax
39     credit that exceeds the qualifying claimant's tax liability for the taxable year.
40          Section 2. Effective date.
41          This bill takes effect for a taxable year beginning on or after January 1, 2024.