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7 LONG TITLE
8 General Description:
9 This bill creates a nonrefundable income tax credit for sales of new, electric-powered
10 lawn equipment.
11 Highlighted Provisions:
12 This bill:
13 ▸ defines terms;
14 ▸ enacts a nonrefundable income tax credit for sellers that sell new, electric-powered
15 lawn equipment at a discount;
16 ▸ requires a seller that intends to claim the tax credit to report information about sales
17 to the State Tax Commission;
18 ▸ schedules the repeal of the tax credit but requires legislative review before repeal;
19 and
20 ▸ makes technical and conforming changes.
21 Money Appropriated in this Bill:
22 None
23 Other Special Clauses:
24 This bill provides retrospective operation.
25 Utah Code Sections Affected:
26 AMENDS:
27 63I-1-259, as last amended by Laws of Utah 2023, Chapter 52
28 ENACTS:
29 59-1-214, Utah Code Annotated 1953
30 59-7-627, Utah Code Annotated 1953
31 59-10-1048, Utah Code Annotated 1953
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33 Be it enacted by the Legislature of the state of Utah:
34 Section 1. Section 59-1-214 is enacted to read:
35 59-1-214. Reporting of lawn equipment sales.
36 (1) As used in this section:
37 (a) "Discount" means the subtraction of 30% or more off of the purchase price for
38 which a seller offers an item of lawn equipment for purchase.
39 (b) "Lawn equipment" means a chainsaw, an edger, a lawn mower, a leaf blower, a leaf
40 vacuum, a trimmer, or a snowblower.
41 (c) "Purchase price" means the same as that term is defined in Section 59-12-102.
42 (d) "Retail sale" means the same as that term is defined in Section 59-12-102.
43 (2) A seller of lawn equipment that intends to claim a tax credit described in Section
44 59-7-627 or 59-10-1048 shall report to the commission annually, on or before the due date, not
45 including extensions, for filing an income tax return for the previous taxable year:
46 (a) identifying information of the seller;
47 (b) the aggregate purchase price for all retail sales in the state of new, electric-powered
48 lawn equipment sold by the seller at a discount during the previous taxable year; and
49 (c) a certification that the seller included only the purchase price of new,
50 electric-powered lawn equipment:
51 (i) that is sold within the state; and
52 (ii) for which the purchaser received a discount.
53 (3) Lawn equipment is sold within the state if the seller sources the sale to the state in
54 accordance with Sections 59-12-211 through 59-12-215.
55 (4) The commission shall report the information reported in accordance with
56 Subsection (2)(b), by taxable year, for all sellers that are eligible to claim a tax credit described
57 in Section 59-7-627 or 59-10-1048 to the committee assigned to complete the review required
58 by Section 63I-1-259.
59 Section 2. Section 59-7-627 is enacted to read:
60 59-7-627. Nonrefundable tax credit for seller of electric lawn equipment.
61 (1) As used in this section:
62 (a) "Discount" means the same as that term is defined in Section 59-1-214.
63 (b) "Lawn equipment" means the same as that term is defined in Section 59-1-214.
64 (c) "Purchase price" means the same as that term is defined in Section 59-12-102.
65 (d) "Qualifying taxpayer" means a taxpayer that complies with the requirements
66 described in Section 59-1-214.
67 (e) "Retail sale" means the same as that term is defined in Section 59-12-102.
68 (2) For a taxable year beginning before January 1, 2027, a qualifying taxpayer may
69 claim a nonrefundable tax credit equal to 30% of the purchase price for all retail sales in the
70 state of new, electric-powered lawn equipment that the qualifying taxpayer sold at a discount
71 during the taxable year.
72 (3) (a) A qualifying taxpayer may carry forward, to the next five taxable years, the
73 amount of the tax credit that exceeds the qualifying taxpayer's tax liability for the taxable year.
74 (b) A qualifying taxpayer may not carry back the amount of the tax credit that exceeds
75 the qualifying taxpayer's tax liability for the taxable year.
76 (4) Lawn equipment is sold within the state if the qualifying taxpayer sources the sale
77 to the state in accordance with Sections 59-12-211 through 59-12-215.
78 Section 3. Section 59-10-1048 is enacted to read:
79 59-10-1048. Nonrefundable tax credit for seller of electric lawn equipment.
80 (1) As used in this section:
81 (a) "Discount" means the same as that term is defined in Section 59-1-214.
82 (b) "Lawn equipment" means the same as that term is defined in Section 59-1-214.
83 (c) "Purchase price" means the same as that term is defined in Section 59-12-102.
84 (d) "Qualifying claimant" means a claimant, estate, or trust that complies with the
85 requirements described in Section 59-1-214.
86 (e) "Retail sale" means the same as that term is defined in Section 59-12-102.
87 (2) For a taxable year beginning before January 1, 2027, a qualifying claimant may
88 claim a nonrefundable tax credit equal to 30% of the purchase price for all retail sales in the
89 state of new, electric-powered lawn equipment that the qualifying claimant sold at a discount
90 during the taxable year.
91 (3) (a) A qualifying claimant may carry forward, to the next five taxable years, the
92 amount of the tax credit that exceeds the qualifying claimant's tax liability for the taxable year.
93 (b) A qualifying claimant may not carry back the amount of the tax credit that exceeds
94 the qualifying claimant's tax liability for the taxable year.
95 (4) Lawn equipment is sold within the state if the qualifying claimant sources the sale
96 to the state in accordance with Sections 59-12-211 through 59-12-215.
97 Section 4. Section 63I-1-259 is amended to read:
98 63I-1-259. Repeal dates: Title 59.
99 (1) Section 59-1-213.1 is repealed May 9, 2024.
100 (2) Section 59-1-213.2 is repealed May 9, 2024.
101 (3) Section 59-1-214 is repealed December 31, 2027.
102 [
103 inform the Department of Workforce Services whether an individual claimed a federal earned
104 income tax credit, is repealed July 1, 2029.
105 [
106 [
107 [
108 (8) Section 59-7-627 is repealed December 31, 2027.
109 [
110 [
111 (11) Section 59-10-1048 is repealed December 31, 2027.
112 Section 5. Effective date.
113 This bill takes effect on May 1, 2024.
114 Section 6. Retrospective operation.
115 (1) The following sections have retrospective operation for a taxable year beginning on
116 or after January 1, 2024:
117 (a) Section 59-7-627, effective May 1, 2024; and
118 (b) Section 59-10-1048, effective May 1, 2024.