1 | 1 | | H.B. 480 |
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2 | 2 | | LEGISLATIVE GENERAL COUNSEL |
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3 | 3 | | 6 Approved for Filing: A.V. Arthur 6 |
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4 | 4 | | 6 02-15-23 1:21 PM 6 |
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5 | 5 | | H.B. 480 |
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6 | 6 | | 1 CHILD TAX CREDIT AMENDMENTS |
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7 | 7 | | 2 2023 GENERAL SESSION |
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8 | 8 | | 3 STATE OF UTAH |
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9 | 9 | | 4 Chief Sponsor: Joel K. Briscoe |
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10 | 10 | | 5 Senate Sponsor: ____________ |
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11 | 11 | | 6 |
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12 | 12 | | 7LONG TITLE |
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13 | 13 | | 8General Description: |
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14 | 14 | | 9 This bill creates a child tax credit. |
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15 | 15 | | 10Highlighted Provisions: |
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16 | 16 | | 11 This bill: |
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17 | 17 | | 12 <creates a refundable child tax credit; and |
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18 | 18 | | 13 <provides for apportionment of the child tax credit. |
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19 | 19 | | 14Money Appropriated in this Bill: |
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20 | 20 | | 15 None |
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21 | 21 | | 16Other Special Clauses: |
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22 | 22 | | 17 This bill provides retrospective operation. |
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23 | 23 | | 18Utah Code Sections Affected: |
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24 | 24 | | 19ENACTS: |
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25 | 25 | | 20 59-10-1102.1, Utah Code Annotated 1953 |
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26 | 26 | | 21 59-10-1114, Utah Code Annotated 1953 |
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27 | 27 | | 22 |
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28 | 28 | | 23Be it enacted by the Legislature of the state of Utah: |
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29 | 29 | | 24 Section 1. Section 59-10-1102.1 is enacted to read: |
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30 | 30 | | 25 59-10-1102.1. Apportionment of tax credit. |
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31 | 31 | | 26 A nonresident individual or a part-year resident individual who claims a tax credit in |
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32 | 32 | | 27accordance with Section 59-10-1114 may claim only an apportioned amount of the tax credit |
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33 | 33 | | *HB0480* H.B. 480 02-15-23 1:21 PM |
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34 | 34 | | - 2 - |
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35 | 35 | | 28equal to the product of: |
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36 | 36 | | 29 (1) the state income tax percentage for the nonresident individual or the state income |
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37 | 37 | | 30tax percentage for the part-year resident individual; and |
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38 | 38 | | 31 (2) the amount of the tax credit that the nonresident individual or the part-year resident |
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39 | 39 | | 32individual would have been allowed to claim but for the apportionment requirement of this |
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40 | 40 | | 33section. |
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41 | 41 | | 34 Section 2. Section 59-10-1114 is enacted to read: |
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42 | 42 | | 35 59-10-1114. Refundable child tax credit. |
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43 | 43 | | 36 (1) As used in this section: |
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44 | 44 | | 37 (a) "Federal child tax credit" means the federal child tax credit described in Section 24, |
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45 | 45 | | 38Internal Revenue Code, including the refundable portion of the child tax credit.2-6(c) |
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46 | 46 | | 39 (b) "Joint filing status" means the same as that term is defined in Section 59-10-1018. |
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47 | 47 | | 40 (c) "Qualifying child" means an individual: |
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48 | 48 | | 41 (i) with respect to whom the qualifying claimant is allowed to claim a tax credit under |
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49 | 49 | | 42Section 24, Internal Revenue Code, on the qualifying claimant's federal individual income tax |
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50 | 50 | | 43return for the taxable year; and |
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51 | 51 | | 44 (ii) who is younger than six years old on the last day of the claimant's taxable year. |
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52 | 52 | | 45 (d) "Qualifying claimant" means a claimant who: |
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53 | 53 | | 46 (i) qualifies for and claims the federal child tax credit during the previous taxable year; |
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54 | 54 | | 47and |
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55 | 55 | | 48 (ii) (A) if the claimant has a filing status other than a joint filing status, has adjusted |
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56 | 56 | | 49gross income of $75,000 or less; or |
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57 | 57 | | 50 (B) if the claimant has a joint filing status, has adjusted gross income of $85,000 or |
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58 | 58 | | 51less. |
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59 | 59 | | 52 (2) Subject to Section 59-10-1102.1, a qualifying claimant may claim a refundable |
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60 | 60 | | 53child tax credit equal to a percentage of the federal child tax credit that the qualifying claimant |
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61 | 61 | | 54was entitled to claim on a federal income tax return in the previous taxable year for each |
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62 | 62 | | 55qualifying child as follows: |
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63 | 63 | | 56 (a) if the federal child tax credit for the previous taxable year is equal to or greater than |
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64 | 64 | | 57the federal child tax credit amount in a taxable year beginning on or after January 1, 2021, and |
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65 | 65 | | 58beginning before January 1, 2022, for a child younger than six years old: 02-15-23 1:21 PM H.B. 480 |
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66 | 66 | | - 3 - |
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67 | 67 | | 59 (i) for a qualifying claimant with a filing status other than a joint filing status: |
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68 | 68 | | 60 (A) whose adjusted gross income is $25,000 or less, 30%; |
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69 | 69 | | 61 (B) whose adjusted gross income is more than $25,000 and no more than $50,000, |
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70 | 70 | | 6215%; and |
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71 | 71 | | 63 (C) whose adjusted gross income is more than $50,000 and no more than $75,000, 5%; |
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72 | 72 | | 64and |
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73 | 73 | | 65 (ii) for a qualifying claimant with a joint filing status: |
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74 | 74 | | 66 (A) whose adjusted gross income is $35,000 or less, 30%; |
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75 | 75 | | 67 (B) whose adjusted gross income is more than $35,000 and no more than $60,000, |
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76 | 76 | | 6815%; and |
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77 | 77 | | 69 (C) whose adjusted gross income is more than $60,000 and no more than $85,000, 5%; |
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78 | 78 | | 70or |
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79 | 79 | | 71 (b) if the federal child tax credit for the previous taxable year is less than the federal |
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80 | 80 | | 72child tax credit amount in a taxable year beginning on or after January 1, 2021, and beginning |
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81 | 81 | | 73before January 1, 2022, for a child younger than six years old: |
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82 | 82 | | 74 (i) for a qualifying claimant with a filing status other than a joint filing status: |
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83 | 83 | | 75 (A) whose adjusted gross income is $25,000 or less, 60%; |
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84 | 84 | | 76 (B) whose adjusted gross income is more than $25,000 and no more than $50,000, |
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85 | 85 | | 7730%; and |
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86 | 86 | | 78 (C) whose adjusted gross income is more than $50,000 and no more than $75,000, |
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87 | 87 | | 7910%; and |
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88 | 88 | | 80 (ii) for a qualifying claimant with a joint filing status: |
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89 | 89 | | 81 (A) whose adjusted gross income is $35,000 or less, 60%; |
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90 | 90 | | 82 (B) whose adjusted gross income is more than $35,000 and no more than $60,000, |
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91 | 91 | | 8330%; and |
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92 | 92 | | 84 (C) whose adjusted gross income is more than $60,000 and no more than $85,000, |
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93 | 93 | | 8510%. |
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94 | 94 | | 86 Section 3. Retrospective operation. |
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95 | 95 | | 87 This bill has retrospective operation for a taxable year beginning on or after January 1, |
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96 | 96 | | 882023. |
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