Utah 2023 Regular Session

Utah House Bill HB0480 Compare Versions

Only one version of the bill is available at this time.
OldNewDifferences
11 H.B. 480
22 LEGISLATIVE GENERAL COUNSEL
33 6 Approved for Filing: A.V. Arthur 6
44 6 02-15-23 1:21 PM 6
55 H.B. 480
66 1 CHILD TAX CREDIT AMENDMENTS
77 2 2023 GENERAL SESSION
88 3 STATE OF UTAH
99 4 Chief Sponsor: Joel K. Briscoe
1010 5 Senate Sponsor: ____________
1111 6
1212 7LONG TITLE
1313 8General Description:
1414 9 This bill creates a child tax credit.
1515 10Highlighted Provisions:
1616 11 This bill:
1717 12 <creates a refundable child tax credit; and
1818 13 <provides for apportionment of the child tax credit.
1919 14Money Appropriated in this Bill:
2020 15 None
2121 16Other Special Clauses:
2222 17 This bill provides retrospective operation.
2323 18Utah Code Sections Affected:
2424 19ENACTS:
2525 20 59-10-1102.1, Utah Code Annotated 1953
2626 21 59-10-1114, Utah Code Annotated 1953
2727 22
2828 23Be it enacted by the Legislature of the state of Utah:
2929 24 Section 1. Section 59-10-1102.1 is enacted to read:
3030 25 59-10-1102.1. Apportionment of tax credit.
3131 26 A nonresident individual or a part-year resident individual who claims a tax credit in
3232 27accordance with Section 59-10-1114 may claim only an apportioned amount of the tax credit
3333 *HB0480* H.B. 480 02-15-23 1:21 PM
3434 - 2 -
3535 28equal to the product of:
3636 29 (1) the state income tax percentage for the nonresident individual or the state income
3737 30tax percentage for the part-year resident individual; and
3838 31 (2) the amount of the tax credit that the nonresident individual or the part-year resident
3939 32individual would have been allowed to claim but for the apportionment requirement of this
4040 33section.
4141 34 Section 2. Section 59-10-1114 is enacted to read:
4242 35 59-10-1114. Refundable child tax credit.
4343 36 (1) As used in this section:
4444 37 (a) "Federal child tax credit" means the federal child tax credit described in Section 24,
4545 38Internal Revenue Code, including the refundable portion of the child tax credit.2-6(c)
4646 39 (b) "Joint filing status" means the same as that term is defined in Section 59-10-1018.
4747 40 (c) "Qualifying child" means an individual:
4848 41 (i) with respect to whom the qualifying claimant is allowed to claim a tax credit under
4949 42Section 24, Internal Revenue Code, on the qualifying claimant's federal individual income tax
5050 43return for the taxable year; and
5151 44 (ii) who is younger than six years old on the last day of the claimant's taxable year.
5252 45 (d) "Qualifying claimant" means a claimant who:
5353 46 (i) qualifies for and claims the federal child tax credit during the previous taxable year;
5454 47and
5555 48 (ii) (A) if the claimant has a filing status other than a joint filing status, has adjusted
5656 49gross income of $75,000 or less; or
5757 50 (B) if the claimant has a joint filing status, has adjusted gross income of $85,000 or
5858 51less.
5959 52 (2) Subject to Section 59-10-1102.1, a qualifying claimant may claim a refundable
6060 53child tax credit equal to a percentage of the federal child tax credit that the qualifying claimant
6161 54was entitled to claim on a federal income tax return in the previous taxable year for each
6262 55qualifying child as follows:
6363 56 (a) if the federal child tax credit for the previous taxable year is equal to or greater than
6464 57the federal child tax credit amount in a taxable year beginning on or after January 1, 2021, and
6565 58beginning before January 1, 2022, for a child younger than six years old: 02-15-23 1:21 PM H.B. 480
6666 - 3 -
6767 59 (i) for a qualifying claimant with a filing status other than a joint filing status:
6868 60 (A) whose adjusted gross income is $25,000 or less, 30%;
6969 61 (B) whose adjusted gross income is more than $25,000 and no more than $50,000,
7070 6215%; and
7171 63 (C) whose adjusted gross income is more than $50,000 and no more than $75,000, 5%;
7272 64and
7373 65 (ii) for a qualifying claimant with a joint filing status:
7474 66 (A) whose adjusted gross income is $35,000 or less, 30%;
7575 67 (B) whose adjusted gross income is more than $35,000 and no more than $60,000,
7676 6815%; and
7777 69 (C) whose adjusted gross income is more than $60,000 and no more than $85,000, 5%;
7878 70or
7979 71 (b) if the federal child tax credit for the previous taxable year is less than the federal
8080 72child tax credit amount in a taxable year beginning on or after January 1, 2021, and beginning
8181 73before January 1, 2022, for a child younger than six years old:
8282 74 (i) for a qualifying claimant with a filing status other than a joint filing status:
8383 75 (A) whose adjusted gross income is $25,000 or less, 60%;
8484 76 (B) whose adjusted gross income is more than $25,000 and no more than $50,000,
8585 7730%; and
8686 78 (C) whose adjusted gross income is more than $50,000 and no more than $75,000,
8787 7910%; and
8888 80 (ii) for a qualifying claimant with a joint filing status:
8989 81 (A) whose adjusted gross income is $35,000 or less, 60%;
9090 82 (B) whose adjusted gross income is more than $35,000 and no more than $60,000,
9191 8330%; and
9292 84 (C) whose adjusted gross income is more than $60,000 and no more than $85,000,
9393 8510%.
9494 86 Section 3. Retrospective operation.
9595 87 This bill has retrospective operation for a taxable year beginning on or after January 1,
9696 882023.