Fiscal Note
H.B. 60 3rd Sub. (Cherry)
2025 General Session
State Income Tax Amendments
by Eliason, Steve
(McCay, Daniel)
General, Income Tax, and Uniform School Funds JR4-4-101
Ongoing One-time Total
Net GF/ITF/USF (rev.-exp.) $60,000 $(91,000) $(31,000)
State Government UCA 36-12-13(2)(c)
Revenues FY 2025 FY 2026 FY 2027
Income Tax Fund $0 $60,000 $60,000
Income Tax Fund, One-time $0 $(60,000) $0
Total Revenues $0 $0 $60,000
Enactment of this legislation could result in an estimated $60,000 increase in Income Tax Fund
revenues ongoing beginning in FY 2027 due to the creation of a deduction for individuals who have
to repay social security that is subject to income tax and the modification of the circumstances under
which an individual is exempt from individual income tax. To the extent there are carry forward pass-
through entity tax credits that would have expired after the five-year carry forward period that could
be utilized during the extended carry forward period, this bill could result in unknown revenue loss to
the Income Tax Fund beginning in FY 2029. (This tax credit was enacted in tax year 2022, so tax year
2022 credits can currently be carried forward to tax years 2023 through 2027. Under this bill, unused
2022 credits could be carried forward to tax years 2028 through 2032.)
Expenditures FY 2025 FY 2026 FY 2027
Income Tax Fund, One-time $31,000 $0 $0
Total Expenditures $31,000 $0 $0
Enactment of this legislation could cost the Tax Commission $31,000 one-time in FY 2025 to update
systems and forms to comply with the provisions of the bill. The Tax Commission has indicated that
they can absorb these costs.
FY 2025 FY 2026 FY 2027
Net All Funds $(31,000) $0 $60,000
Local Government UCA 36-12-13(2)(c)
Enactment of this legislation likely will not result in direct, measurable costs for local governments.
H.B. 60 3rd Sub. (Cherry)
2025/02/07 15:58, Lead Analyst: Andrea Wilko, Attorney: Arthur, A. V. Individuals & Businesses UCA 36-12-13(2)(c)
Enactment of this legislation could reduce income tax by $15,000 in aggregate for individuals who
have to repay social security that is subject to income tax as a result of the creation of a subtraction
from income in the bill. The modification of the circumstances under which an individual is exempt from
individual income tax could result in an aggregate net tax increase of $75,000 for a small number of
taxpayers. Extending the carry forward for the tax credit for taxes paid by pass-through entity from
five years to ten years could result in a reduction in income tax liability for taxpayers that have carry
forward tax credits that would have expired after the five-year carry forward period that they are able to
use during the extended carry forward period.
Regulatory Impact UCA 36-12-13(2)(d)
Enactment of this legislation likely will not change the regulatory burden for Utah residents or
businesses.
Performance Evaluation JR1-4-601
This bill does not create a new program or significantly expand an existing program.
Notes on Notes
Fiscal explanations estimate the direct costs or revenues of enacting a bill. The Legislature uses them to balance the budget. They do not
measure a bill's benefits or non-fiscal impacts like opportunity costs, wait times, or inconvenience. A fiscal explanation is not an appropriation. The
Legislature decides appropriations separately.
H.B. 60 3rd Sub. (Cherry)
2025/02/07 15:58, Lead Analyst: Andrea Wilko, Attorney: Arthur, A. V.