Utah 2022 Regular Session

Utah Senate Bill SB0076

Introduced
1/18/22  
Refer
1/25/22  
Report Pass
2/1/22  
Engrossed
2/8/22  
Refer
2/9/22  
Report Pass
2/15/22  
Enrolled
3/11/22  

Caption

Targeted Business Income Tax Credit Amendments

Impact

The bill's revisions include amending several sections of the tax code to facilitate the claiming of the tax credit while also setting forth provisions to repeal existing credits that may overlap with the new framework. The amendments are designed to simplify the application process for eligible businesses, explicitly highlighting the necessary qualifications and the duration for which credits may be claimed. Overall, SB0076 is anticipated to influence the state's approach to economic development, primarily by allowing local businesses to benefit financially while driving investment in underserved regions.

Summary

SB0076, also known as the Targeted Business Income Tax Credit Amendments, aims to focus on providing tax incentives to businesses operating within designated Enterprise Zones. The bill allows businesses to claim a targeted business income tax credit for taxable years beginning before January 1, 2023, thereby incentivizing economic activity in specified areas. This legislation is part of a broader initiative to stimulate local economies, particularly in less populated areas, by promoting business growth and job creation.

Sentiment

General sentiment around SB0076 appears to be supportive among stakeholders advocating for local economic development. Proponents argue that providing targeted tax credits can significantly contribute to job creation and attraction of capital. However, there are concerns raised regarding the potential for these credits to favor certain businesses over others, raising questions about fairness in tax policy. The balance between incentivizing business growth and ensuring equal treatment under the law remains a notable point of discussion.

Contention

Notably, the bill's contention revolves around how effectively it can be utilized to spur economic development without leading to unintended consequences, such as dependency on temporary tax benefits. Critics may argue that repealing existing credits and replacing them with new provisions could destabilize the financial landscape for businesses currently relying on those obligations. The challenges in ensuring compliance and monitoring the effectiveness of the tax credits will be essential factors influencing the bill's success and its reception among the business community.

Companion Bills

No companion bills found.

Previously Filed As

UT SB0043

Income Tax Credit Review Amendments

UT HB0054

Enterprise Zone Tax Credit Amendments

UT SB0085

Income Tax Rate Amendments

UT SB0071

Cannabis Business Tax Credit Amendments

UT HB0262

Incentives Amendments

UT SB0211

Income Tax Fund Amendments

UT SB0084

Governor's Office of Economic Opportunity Amendments

UT HB0407

Incentives Amendments

UT HB0060

State Tax Amendments

UT SB0153

Governor's Office of Economic Opportunity Amendments

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