03-04 08:09 4th Sub. (Green) H.B. 60
Daniel McCay proposes the following substitute bill:
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State Tax Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Steve Eliason
Senate Sponsor: Daniel McCay
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LONG TITLE
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General Description:
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This bill modifies provisions relating to the tax code.
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Highlighted Provisions:
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This bill:
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▸ repeals obsolete language;
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▸ provides the scope of the State Tax Commission's authority to share income tax return
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information with the Department of Workforce Services to determine eligibility for
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public assistance;
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▸ provides the circumstances under which there is an annual limit on the total amount of
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interest that the commission pays;
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▸ requires a payment settlement entity, such as a marketplace facilitator, to file certain
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federal forms Ŝ→ for a participating payee with an address in the state ←Ŝ with the State
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Tax Commission;
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▸ clarifies what is a commercial unit for purposes of claiming a commercial energy system
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tax credit;
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▸ updates the circumstances under which an individual is exempt from individual income
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tax;
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▸ creates a deduction for individuals who have to repay social security that is subject to
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income tax;
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▸ provides for the repeal of the enterprise zone tax credit, which, by statute, automatically
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expired;
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▸ extends the carry forward period for a tax credit available to a pass-through entity
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taxpayer who receives income from a pass-through entity that paid the income tax on the
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income;
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▸ provides the circumstances for the automatic removal of refundable individual income tax
4th Sub. H.B. 60 4th Sub. (Green) H.B. 60 03-04 08:09
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credits from the income tax return; and
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▸ makes technical changes.
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
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This bill provides a special effective date.
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This bill provides retrospective operation.
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Utah Code Sections Affected:
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AMENDS:
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19-12-203 (Effective 01/01/26), as enacted by Laws of Utah 2014, Chapter 24
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31A-32a-103 (Effective 05/07/25), as last amended by Laws of Utah 2008, Chapter 389
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35A-3-105 (Effective 05/07/25), as last amended by Laws of Utah 2015, Chapter 221
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59-1-402 (Effective 01/01/26), as last amended by Laws of Utah 2024, Chapter 290
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59-1-403 (Effective 05/07/25), as last amended by Laws of Utah 2024, Chapters 25, 35
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59-7-614 (Effective 05/07/25) (Applies beginning 01/01/25), as last amended by Laws of
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Utah 2024, Chapter 53
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59-7-614.10 (Effective 05/07/25) (Applies beginning 01/01/25), as last amended by
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Laws of Utah 2021, Chapter 282
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59-10-104.1 (Effective 01/01/26), as last amended by Laws of Utah 2008, Chapter 389
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59-10-114 (Effective 01/01/26), as last amended by Laws of Utah 2023, Chapter 470
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59-10-510 (Effective 01/01/26), as last amended by Laws of Utah 2009, Chapter 212
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59-10-1037 (Effective 05/07/25) (Applies beginning 01/01/25), as last amended by Laws
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of Utah 2021, Chapter 282
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59-10-1042 (Effective 01/01/26), as last amended by Laws of Utah 2023, Chapter 459
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59-10-1045 (Effective 01/01/26) (Applies beginning 01/01/25), as last amended by Laws
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of Utah 2023, Chapter 470
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63I-2-259 (Effective 05/07/25), as last amended by Laws of Utah 2024, Third Special
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Session, Chapter 5
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63I-2-263 (Effective 05/07/25), as last amended by Laws of Utah 2024, Third Special
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Session, Chapter 5
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ENACTS:
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59-1-1801 (Effective 01/01/26), Utah Code Annotated 1953
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59-1-1802 (Effective 01/01/26), Utah Code Annotated 1953
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59-10-1102.2 (Effective 05/07/25) (Applies beginning 01/01/25), Utah Code
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Annotated 1953
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 19-12-203 is amended to read:
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19-12-203 (Effective 01/01/26). Refunds -- Interest.
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(1) A person [who] that pays a tax under Title 59, Chapter 12, Sales and Use Tax Act, on a
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purchase or lease that would otherwise be exempt under Section 19-12-201, except that
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the director has not issued a certification under Section 19-12-303, may obtain a refund
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of the tax if:
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(a) the director subsequently issues a certification under Section 19-12-303; and
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(b) the person files a claim for the refund with the State Tax Commission on or before
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the earlier of:
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(i) three years after the date the director issues the certification under Section
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19-12-303; or
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(ii) six years after the date the person pays the tax under Title 59, Chapter 12, Sales
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and Use Tax Act.
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(2) A person [who] that pays a tax under Title 59, Chapter 12, Sales and Use Tax Act, on a
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purchase or lease that is exempt under Section 19-12-201, may obtain a refund of the tax
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if the person files a claim for the refund with the State Tax Commission within three
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years after the date the person pays the tax under Title 59, Chapter 12, Sales and Use
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Tax Act.
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(3)(a) If a person files a claim for a refund of taxes under Subsection (1) within 180 days
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after the date the director issues a certification under Section 19-12-303, interest shall
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be added to the amount of the refund the State Tax Commission grants:
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(i) at the interest rate [prescribed] and, except as provided in Subsection (3)(a)(ii), in
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the manner provided in Section 59-1-402; and
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(ii) beginning on the date the person pays the tax under Title 59, Chapter 12, Sales
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and Use Tax Act, for which the person is claiming the refund.
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(b) If a person files a claim for a refund of taxes under Subsection (1) more than 180
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days after the date the director issues a certification under Section 19-12-303, interest
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shall be added to the amount of the refund the State Tax Commission grants:
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(i) at the interest rate [prescribed] and, except as provided in Subsection (3)(b)(ii), in
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the manner provided in Section 59-1-402; and
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(ii) beginning 30 days after the date the person files the claim for a refund.
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(4) If a person files a claim for a refund of taxes under Subsection (2), interest shall be
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added to the amount of the refund the State Tax Commission grants:
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(a) at the interest rate [prescribed] and, except as provided in Subsection (4)(b), in the
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manner provided in Section 59-1-402; and
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(b) beginning 30 days after the date the person files the claim for the refund.
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Section 2. Section 31A-32a-103 is amended to read:
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31A-32a-103 (Effective 05/07/25). Establishing medical care savings accounts.
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(1) [For a taxable year beginning on or after January 1, 1995:]
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(a) [an] An employer, except as otherwise provided by contract or a collective bargaining
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agreement, may offer a medical care savings account program to the employer's
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employees[; or] .
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(b) [a] A resident individual may establish a medical care savings account program for
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the individual or for the individual's dependents.
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(2)(a) A contribution into an account made by an employer on behalf of an employee, or
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made by an individual account holder, may not exceed the greater of:
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(i) $2,000 in any taxable year; or
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(ii) an amount of money equal to the sum of all eligible medical expenses paid by the
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employee or account holder for that taxable year on behalf of the employee,
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account holder, or the employee's or account holder's spouse or dependents.
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(b) For purposes of Subsection (2)(a)(ii), eligible medical expenses are limited to
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expenses in the taxable year that an insurance carrier has applied to the employee's or
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account holder's deductible.
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(3) An employer that offers a medical care savings account program shall, before making
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any contributions:
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(a) inform all employees in writing of the fact that these contributions may not be
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deductible under the federal tax laws; and
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(b) obtain from the employee a written election to participate in the medical care savings
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account program.
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[(4) Except as provided in Sections 31A-32a-105 and 59-10-114, principal contributed to
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and interest earned on a medical care savings account and money reimbursed to an
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employee or account holder for eligible medical expenses are exempt from taxation.]
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[(5)] (4)(a) An employer may select a single account administrator for all of the
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employer's employee's medical care savings accounts.
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(b) If a single account administrator is not selected, an employer may contribute directly
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to the account holder's individual medical care savings account.
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Section 3. Section 35A-3-105 is amended to read:
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35A-3-105 (Effective 05/07/25). Determination of eligibility and responsibility --
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Information from State Tax Commission.
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(1) [The] Except as prohibited by federal law, the department may have access to relevant
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information contained in the income tax returns of an applicant, a recipient, or a person
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who has a duty to support an applicant or recipient, in determining:
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(a) eligibility for public assistance;
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(b) payment responsibilities for institutional care; or
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(c) any other administrative purpose consistent with this chapter.
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(2) The information requested by the department shall be:
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(a) provided by the State Tax Commission, to the extent authorized by federal law, on
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forms [furnished] provided by the department; and
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(b) treated by the department as a private record under Title 63G, Chapter 2,
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Government Records Access and Management Act.
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Section 4. Section 59-1-402 is amended to read:
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59-1-402 (Effective 01/01/26). Definitions -- Interest.
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(1) As used in this section:
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(a) "Final judicial decision" means a final ruling by a court of this state or the United
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States for which the time for any further review or proceeding has expired.
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(b) "Retroactive application of a judicial decision" means the application of a final
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judicial decision that:
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(i) invalidates a state or federal taxation statute; and
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(ii) requires the state to provide a refund for an overpayment that was made:
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(A) [prior to] before the final judicial decision; or
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(B) during the 180-day period after the final judicial decision.
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(c)(i) [Except as provided in Subsection (1)(c)(ii), "tax] "Tax, fee, or charge" means:
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(A) a tax, fee, or charge the commission administers under:
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(I) this title;
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(II) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
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(III) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax
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Act;
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(IV) Section 19-6-410.5;
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(V) Section 19-6-714;
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(VI) Section 19-6-805;
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(VII) Section 34A-2-202;
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(VIII) Section 40-6-14; or
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(IX) Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service
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Charges; or
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(B) another amount that by statute is subject to interest imposed under this section.
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(ii) "Tax, fee, or charge" does not include a tax, fee, or charge imposed under:
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(A) Title 41, Chapter 1a, Motor Vehicle Act, except for Section 41-1a-301;
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(B) Title 41, Chapter 3, Motor Vehicle Business Regulation Act;
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(C) Chapter 2, Property Tax Act, except for Section 59-2-1309;
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(D) Chapter 3, Tax Equivalent Property Act;
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(E) Chapter 4, Privilege Tax; or
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(F) Chapter 13, Part 5, Interstate Agreements.
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(2) Except as otherwise provided for by law, the commission shall calculate the interest rate
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for a calendar year for a tax, fee, or charge [administered by the commission shall be
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calculated] the commission administers based on the federal short-term rate determined
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by the Secretary of the Treasury under Section 6621, Internal Revenue Code, in effect
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for the preceding fourth calendar quarter.
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(3) The interest rate calculation shall be as follows:
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(a) except as provided in Subsection (7), in the case of an overpayment or refund, the
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commission shall calculate simple interest [shall be calculated ]at the rate of two
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percentage points above the federal short-term rate; or
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(b) in the case of an underpayment, deficiency, or delinquency, the commission shall
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calculate simple interest [shall be calculated ]at the rate of two percentage points
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above the federal short-term rate.
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(4) Notwithstanding Subsection (2) or (3), the commission shall determine the interest rate
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applicable to certain installment sales for purposes of a tax under Chapter 7, Corporate
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Franchise and Income Taxes, [shall be determined ]in accordance with Section 453A,
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Internal Revenue Code, as provided in Section 59-7-112.
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(5)(a) Except as provided in Subsection (5)(c), the commission may not pay interest [
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may not be allowed ]on an overpayment of a tax, fee, or charge if the overpayment of
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the tax, fee, or charge is refunded within:
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(i) 45 days after the last date [prescribed] provided for filing the return:
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(A) with respect to a tax under Chapter 7, Corporate Franchise and Income Taxes,
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or Chapter 10, Individual Income Tax Act[,] ; and
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(B) if the return is filed electronically; or
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(ii) 90 days after the last date [prescribed] provided for filing the return:
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(A) with respect to a tax, fee, or charge, except for a tax under Chapter 7,
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Corporate Franchise and Income Taxes, or Chapter 10, Individual Income Tax
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Act; or
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(B) if the return is not filed electronically.
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(b) Except as provided in Subsection (5)(c), if [the return is filed after the last date
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prescribed] a person files a return after the last date provided for filing the return,
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interest [may not be] is not allowed on the overpayment if the overpayment is
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refunded within:
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(i) 45 days after the date the return is filed:
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(A) with respect to a tax under Chapter 7, Corporate Franchise and Income Taxes,
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or Chapter 10, Individual Income Tax Act; and
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(B) if the return is filed electronically; or
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(ii) 90 days after the date the return is filed:
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(A) with respect to a tax, fee, or charge, except for a tax under Chapter 7,
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Corporate Franchise and Income Taxes, or Chapter 10, Individual Income Tax
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Act; or
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(B) if the return is not filed electronically.
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(c)(i) Subject to Subsection [(5)(d)] (5)(c)(ii), for an amended return, the commission
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shall pay interest on an overpayment [is allowed ]for a time period:
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(A) that begins on the later of[:]
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[(I)] the date the original return was filed[;] or
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[(II)] the due date for filing the original return not including any extensions for
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filing the original return; and
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(B) that ends on the date the commission receives the amended return.
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(ii)(A) For interest that accrues on or after January 1, 2026, the maximum amount
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of interest authorized by Subsection (5)(c)(i) is $100 per calendar year.
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(B) Subsection (5)(c)(ii)(A) does not apply to an overpayment provided to a
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federally recognized tribe or an overpayment resulting from commission error.
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[(ii)] (iii) For an amended return filed electronically with respect to a tax under
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Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10, Individual
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Income Tax Act, the commission shall pay interest on an overpayment [is allowed ]
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if the commission does not process a refund of the overpayment within a 45-day
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period after the date the commission receives the amended return, for a time
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period:
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(A) that begins 46 days after the commission receives the amended return; and
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(B) that ends on the date that the commission completes processing the refund of
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the overpayment.
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[(iii)] (iv) For an amended return not filed electronically or with respect to any tax,
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fee, or charge not described in Subsection [(5)(c)(ii)] (5)(c)(iii), the commission
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shall pay interest on an overpayment [is allowed ]if the commission does not
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process a refund of the overpayment within a 90-day period after the date the
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commission receives the amended return, for a time period:
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(A) that begins 91 days after the commission receives the amended return; and
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(B) that ends on the date that the commission completes processing the refund of
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the overpayment.
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[(d)(i) This Subsection (5)(d) applies to interest on an overpayment under
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Subsection (5)(c)(i) in which:]
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[(A) the amount of interest accruing on the overpayment on or after January 1,
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2025, exceeds $200 in any calendar year during the time period described in
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Subsection (5)(c)(i); and]
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[(B) the amount of the overpayment exceeds 30% of the taxpayer's total tax
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liability as originally reported for the tax, fee, or charge to which the
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overpayment applies during the time period described in Subsection (5)(c)(i).]
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[(ii) This Subsection (5)(d) does not apply to:]
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[(A) an overpayment provided to a federally-recognized tribe; or]
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[(B) an overpayment resulting from commission error.]
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[(iii) The annual interest rate imposed on an overpayment described in Subsection
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(5)(d)(i) shall be calculated at the rate of two percentage points below the federal
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short-term rate.]
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[(iv) Notwithstanding Subsection (5)(d)(iii), for an overpayment described in
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Subsection (5)(d)(i):]
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[(A) the interest rate imposed on the overpayment shall be a rate of no less than
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0% and no more than 3%; and]
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[(B) the amount of interest accruing in a calendar year for an overpayment may
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not be less than $200, unless the amount of interest that would have accrued
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during the calendar year is less than $200 when calculated using the interest
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rate described in Subsection (3).]
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(6) [Interest on any underpayment, deficiency, or delinquency of a tax, fee, or charge shall
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be computed] The commission shall compute interest on any underpayment, deficiency,
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or delinquency of a tax, fee, or charge from the time the original return is due, excluding
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any filing or payment extensions, to the date the payment is received.
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(7) [Interest on a refund relating to a tax, fee, or charge may not be paid on any overpayment]
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The commission may not pay interest on a refund relating to an overpayment of a tax,
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fee, or charge that arises from a statute that is determined to be invalid under state or
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federal law or declared unconstitutional under the constitution of the United States or
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Utah if the basis for the refund is the retroactive application of a judicial decision
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upholding the claim of unconstitutionality or the invalidation of a statute.
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Section 5. Section 59-1-403 is amended to read:
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59-1-403 (Effective 05/07/25). Confidentiality -- Exceptions -- Penalty --
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Application to property tax.
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(1) As used in this section:
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(a) "Distributed tax, fee, or charge" means a tax, fee, or charge:
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(i) the commission administers under:
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(A) this title, other than a tax under Chapter 12, Part 2, Local Sales and Use Tax
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Act;
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(B) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
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(C) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
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(D) Section 19-6-805;
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(E) Section 63H-1-205; or
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(F) Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service
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Charges; and
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(ii) with respect to which the commission distributes the revenue collected from the
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tax, fee, or charge to a qualifying jurisdiction.
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(b) "Qualifying jurisdiction" means:
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(i) a county, city, or town;
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(ii) the military installation development authority created in Section 63H-1-201; or
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(iii) the Utah Inland Port Authority created in Section 11-58-201.
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(2)(a) Any of the following may not divulge or make known in any manner any
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information gained by that person from any return filed with the commission:
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(i) a tax commissioner;
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(ii) an agent, clerk, or other officer or employee of the commission; or
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(iii) a representative, agent, clerk, or other officer or employee of any county, city, or
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town.
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(b) An official charged with the custody of a return filed with the commission is not
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required to produce the return or evidence of anything contained in the return in any
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action or proceeding in any court, except:
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(i) in accordance with judicial order;
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(ii) on behalf of the commission in any action or proceeding under:
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(A) this title; or
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(B) other law under which persons are required to file returns with the
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commission;
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(iii) on behalf of the commission in any action or proceeding to which the
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commission is a party; or
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(iv) on behalf of any party to any action or proceeding under this title if the report or
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facts shown by the return are directly involved in the action or proceeding.
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(c) Notwithstanding Subsection (2)(b), a court may require the production of, and may
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admit in evidence, any portion of a return or of the facts shown by the return, as are
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specifically pertinent to the action or proceeding.
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(3) This section does not prohibit:
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(a) a person or that person's duly authorized representative from receiving a copy of any
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return or report filed in connection with that person's own tax;
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(b) the publication of statistics as long as the statistics are classified to prevent the
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identification of particular reports or returns; and
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(c) the inspection by the attorney general or other legal representative of the state of the
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report or return of any taxpayer:
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(i) who brings action to set aside or review a tax based on the report or return;
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(ii) against whom an action or proceeding is contemplated or has been instituted
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under this title; or
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(iii) against whom the state has an unsatisfied money judgment.
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(4)(a) Notwithstanding Subsection (2) and for purposes of administration, the
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commission may by rule, made in accordance with Title 63G, Chapter 3, Utah
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Administrative Rulemaking Act, provide for a reciprocal exchange of information
333
with:
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(i) the United States Internal Revenue Service; or
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(ii) the revenue service of any other state.
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(b) Notwithstanding Subsection (2) and for all taxes except individual income tax and
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corporate franchise tax, the commission may by rule, made in accordance with Title
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63G, Chapter 3, Utah Administrative Rulemaking Act, share information gathered
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from returns and other written statements with the federal government, any other
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state, any of the political subdivisions of another state, or any political subdivision of
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this state, except as limited by Sections 59-12-209 and 59-12-210, if the political
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subdivision, other state, or the federal government grant substantially similar
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privileges to this state.
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(c) Notwithstanding Subsection (2) and for all taxes except individual income tax and
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corporate franchise tax, the commission may by rule, in accordance with Title 63G,
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Chapter 3, Utah Administrative Rulemaking Act, provide for the issuance of
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information concerning the identity and other information of taxpayers who have
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failed to file tax returns or to pay any tax due.
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(d) Notwithstanding Subsection (2), the commission shall provide to the director of the
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Division of Environmental Response and Remediation, as defined in Section
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19-6-402, as requested by the director of the Division of Environmental Response
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and Remediation, any records, returns, or other information filed with the
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commission under Chapter 13, Motor and Special Fuel Tax Act, or Section
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19-6-410.5 regarding the environmental assurance program participation fee.
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(e) Notwithstanding Subsection (2), at the request of any person the commission shall
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provide that person sales and purchase volume data reported to the commission on a
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report, return, or other information filed with the commission under:
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(i) Chapter 13, Part 2, Motor Fuel; or
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(ii) Chapter 13, Part 4, Aviation Fuel.
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(f) Notwithstanding Subsection (2), upon request from a tobacco product manufacturer,
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as defined in Section 59-22-202, the commission shall report to the manufacturer:
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(i) the quantity of cigarettes, as defined in Section 59-22-202, produced by the
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manufacturer and reported to the commission for the previous calendar year under
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Section 59-14-407; and
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(ii) the quantity of cigarettes, as defined in Section 59-22-202, produced by the
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manufacturer for which a tax refund was granted during the previous calendar
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year under Section 59-14-401 and reported to the commission under Subsection
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59-14-401(1)(a)(v).
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(g) Notwithstanding Subsection (2), the commission shall notify manufacturers,
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distributors, wholesalers, and retail dealers of a tobacco product manufacturer that is
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prohibited from selling cigarettes to consumers within the state under Subsection
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59-14-210(2).
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(h) Notwithstanding Subsection (2), the commission may:
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(i) provide to the Division of Consumer Protection within the Department of
375
Commerce and the attorney general data:
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(A) reported to the commission under Section 59-14-212; or
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(B) related to a violation under Section 59-14-211; and
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(ii) upon request, provide to any person data reported to the commission under
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Subsections 59-14-212(1)(a) through (c) and Subsection 59-14-212(1)(g).
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(i) Notwithstanding Subsection (2), the commission shall, at the request of a committee
381
of the Legislature, the Office of the Legislative Fiscal Analyst, or the Governor's
382
Office of Planning and Budget, provide to the committee or office the total amount of [
383
revenues] revenue collected by the commission under Chapter 24, Radioactive Waste
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Facility Tax Act, for the time period specified by the committee or office.
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(j) Notwithstanding Subsection (2), the commission shall make the directory required by
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Section 59-14-603 available for public inspection.
387
(k) Notwithstanding Subsection (2), the commission may share information with federal,
388
state, or local agencies as provided in Subsection 59-14-606(3).
389
(l)(i) Notwithstanding Subsection (2), the commission shall provide the Office of
390
Recovery Services within the Department of Health and Human Services any
391
relevant information obtained from a return filed under Chapter 10, Individual
392
Income Tax Act, regarding a taxpayer who has become obligated to the Office of
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Recovery Services.
394
(ii) The information described in Subsection (4)(l)(i) may be provided by the Office
395
of Recovery Services to any other state's child support collection agency involved
396
in enforcing that support obligation.
397
(m)(i) Notwithstanding Subsection (2), upon request from the state court
398
administrator, the commission shall provide to the state court administrator, the
399
name, address, telephone number, county of residence, and social security number
400
on resident returns filed under Chapter 10, Individual Income Tax Act.
401
(ii) The state court administrator may use the information described in Subsection
- 12 - 03-04 08:09 4th Sub. (Green) H.B. 60
402
(4)(m)(i) only as a source list for the master jury list described in Section
403
78B-1-106.
404
(n)(i) As used in this Subsection (4)(n):
405
(A) "GOEO" means the Governor's Office of Economic Opportunity created in
406
Section 63N-1a-301.
407
(B) "Income tax information" means information gained by the commission that is
408
required to be attached to or included in a return filed with the commission
409
under Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10,
410
Individual Income Tax Act.
411
(C) "Other tax information" means information gained by the commission that is
412
required to be attached to or included in a return filed with the commission
413
except for a return filed under Chapter 7, Corporate Franchise and Income
414
Taxes, or Chapter 10, Individual Income Tax Act.
415
(D) "Tax information" means income tax information or other tax information.
416
(ii)(A) Notwithstanding Subsection (2) and except as provided in Subsection
417
(4)(n)(ii)(B) or (C), the commission shall at the request of GOEO provide to
418
GOEO all income tax information.
419
(B) For purposes of a request for income tax information made under Subsection
420
(4)(n)(ii)(A), GOEO may not request and the commission may not provide to
421
GOEO a person's address, name, social security number, or taxpayer
422
identification number.
423
(C) In providing income tax information to GOEO, the commission shall in all
424
instances protect the privacy of a person as required by Subsection (4)(n)(ii)(B).
425
(iii)(A) Notwithstanding Subsection (2) and except as provided in Subsection
426
(4)(n)(iii)(B), the commission shall at the request of GOEO provide to GOEO
427
other tax information.
428
(B) Before providing other tax information to GOEO, the commission shall redact
429
or remove any name, address, social security number, or taxpayer identification
430
number.
431
(iv) GOEO may provide tax information received from the commission in accordance
432
with this Subsection (4)(n) only:
433
(A) as a fiscal estimate, fiscal note information, or statistical information; and
434
(B) if the tax information is classified to prevent the identification of a particular
435
return.
- 13 - 4th Sub. (Green) H.B. 60 03-04 08:09
436
(v)(A) A person may not request tax information from GOEO under Title 63G,
437
Chapter 2, Government Records Access and Management Act, or this section,
438
if GOEO received the tax information from the commission in accordance with
439
this Subsection (4)(n).
440
(B) GOEO may not provide to a person that requests tax information in
441
accordance with Subsection (4)(n)(v)(A) any tax information other than the tax
442
information GOEO provides in accordance with Subsection (4)(n)(iv).
443
(o) Notwithstanding Subsection (2), the commission may provide to the governing board
444
of the agreement or a taxing official of another state, the District of Columbia, the
445
United States, or a territory of the United States:
446
(i) the following relating to an agreement sales and use tax:
447
(A) information contained in a return filed with the commission;
448
(B) information contained in a report filed with the commission;
449
(C) a schedule related to Subsection (4)(o)(i)(A) or (B); or
450
(D) a document filed with the commission; or
451
(ii) a report of an audit or investigation made with respect to an agreement sales and
452
use tax.
453
(p) Notwithstanding Subsection (2), the commission may provide information
454
concerning a taxpayer's state income tax return or state income tax withholding
455
information to the Driver License Division if the Driver License Division:
456
(i) requests the information; and
457
(ii) provides the commission with a signed release form from the taxpayer allowing
458
the Driver License Division access to the information.
459
(q) Notwithstanding Subsection (2), the commission shall provide to the Utah
460
Communications Authority, or a division of the Utah Communications Authority, the
461
information requested by the authority under Sections 63H-7a-302, 63H-7a-402, and
462
63H-7a-502.
463
(r) Notwithstanding Subsection (2), the commission shall provide to the Utah
464
Educational Savings Plan information related to a resident or nonresident individual's
465
contribution to a Utah Educational Savings Plan account as designated on the
466
resident or nonresident's individual income tax return as provided under Section
467
59-10-1313.
468
(s) Notwithstanding Subsection (2), for the purpose of verifying eligibility under
469
Sections 26B-3-106 and 26B-3-903, the commission shall provide an eligibility
- 14 - 03-04 08:09 4th Sub. (Green) H.B. 60
470
worker with the Department of Health and Human Services or its designee with the
471
adjusted gross income of an individual if:
472
(i) an eligibility worker with the Department of Health and Human Services or its
473
designee requests the information from the commission; and
474
(ii) the eligibility worker has complied with the identity verification and consent
475
provisions of Sections 26B-3-106 and 26B-3-903.
476
(t) Notwithstanding Subsection (2), the commission may provide to a county, as
477
determined by the commission, information declared on an individual income tax
478
return in accordance with Section 59-10-103.1 that relates to eligibility to claim a
479
residential exemption authorized under Section 59-2-103.
480
(u) Notwithstanding Subsection (2), the commission shall provide a report regarding any
481
access line provider that is over 90 days delinquent in payment to the commission of
482
amounts the access line provider owes under Title 69, Chapter 2, Part 4, Prepaid
483
Wireless Telecommunications Service Charges, to the board of the Utah
484
Communications Authority created in Section 63H-7a-201.
485
(v) Notwithstanding Subsection (2), the commission shall provide the Department of
486
Environmental Quality a report on the amount of tax paid by a radioactive waste
487
facility for the previous calendar year under Section 59-24-103.5.
488
(w) Notwithstanding Subsection (2), the commission may, upon request, provide to the
489
Department of Workforce Services any information received under Chapter 10, Part
490
4, Withholding of Tax, that is relevant to the duties of the Department of Workforce
491
Services.
492
(x) Notwithstanding Subsection (2), the commission may provide the Public Service
493
Commission or the Division of Public Utilities information related to a seller that
494
collects and remits to the commission a charge described in Subsection 69-2-405(2),
495
including the seller's identity and the number of charges described in Subsection
496
69-2-405(2) that the seller collects.
497
(y)(i) Notwithstanding Subsection (2), the commission shall provide to each
498
qualifying jurisdiction the collection data necessary to verify the revenue collected
499
by the commission for a distributed tax, fee, or charge collected within the
500
qualifying jurisdiction.
501
(ii) In addition to the information provided under Subsection (4)(y)(i), the
502
commission shall provide a qualifying jurisdiction with copies of returns and other
503
information relating to a distributed tax, fee, or charge collected within the
- 15 - 4th Sub. (Green) H.B. 60 03-04 08:09
504
qualifying jurisdiction.
505
(iii)(A) To obtain the information described in Subsection (4)(y)(ii), the chief
506
executive officer or the chief executive officer's designee of the qualifying
507
jurisdiction shall submit a written request to the commission that states the
508
specific information sought and how the qualifying jurisdiction intends to use
509
the information.
510
(B) The information described in Subsection (4)(y)(ii) is available only in official
511
matters of the qualifying jurisdiction.
512
(iv) Information that a qualifying jurisdiction receives in response to a request under
513
this subsection is:
514
(A) classified as a private record under Title 63G, Chapter 2, Government Records
515
Access and Management Act; and
516
(B) subject to the confidentiality requirements of this section.
517
(z) Notwithstanding Subsection (2), the commission shall provide the Alcoholic
518
Beverage Services Commission, upon request, with taxpayer status information
519
related to state tax obligations necessary to comply with the requirements described
520
in Section 32B-1-203.
521
(aa) Notwithstanding Subsection (2), the commission shall inform the Department of
522
Workforce Services, as soon as practicable, whether an individual claimed and is
523
entitled to claim a federal earned income tax credit for the year requested by the
524
Department of Workforce Services if:
525
(i) the Department of Workforce Services requests this information; and
526
(ii) the commission has received the information release described in Section
527
35A-9-604.
528
(bb)(i) As used in this Subsection (4)(bb), "unclaimed property administrator" means
529
the administrator or the administrator's agent, as those terms are defined in Section
530
67-4a-102.
531
(ii)(A) Notwithstanding Subsection (2), upon request from the unclaimed property
532
administrator and to the extent allowed under federal law, the commission shall
533
provide the unclaimed property administrator the name, address, telephone
534
number, county of residence, and social security number or federal employer
535
identification number on any return filed under Chapter 7, Corporate Franchise
536
and Income Taxes, or Chapter 10, Individual Income Tax Act.
537
(B) The unclaimed property administrator may use the information described in
- 16 - 03-04 08:09 4th Sub. (Green) H.B. 60
538
Subsection (4)(bb)(ii)(A) only for the purpose of returning unclaimed property
539
to the property's owner in accordance with Title 67, Chapter 4a, Revised
540
Uniform Unclaimed Property Act.
541
(iii) The unclaimed property administrator is subject to the confidentiality provisions
542
of this section with respect to any information the unclaimed property
543
administrator receives under this Subsection (4)(bb).
544
(cc) Notwithstanding Subsection (2), the commission may, upon request, disclose a
545
taxpayer's state individual income tax information to a program manager of the Utah
546
Fits All Scholarship Program under Section 53F-6-402 if:
547
(i) the taxpayer consents in writing to the disclosure;
548
(ii) the taxpayer's written consent includes the taxpayer's name, social security
549
number, and any other information the commission requests that is necessary to
550
verify the identity of the taxpayer; and
551
(iii) the program manager provides the taxpayer's written consent to the commission.
552
(dd) Notwithstanding Subsection (2), the commission may provide to the Division of
553
Finance within the Department of Government Operations any information necessary
554
to facilitate a payment from the commission to a taxpayer, including:
555
(i) the name of the taxpayer entitled to the payment or any other person legally
556
authorized to receive the payment;
557
(ii) the taxpayer identification number of the taxpayer entitled to the payment;
558
(iii) the payment identification number and amount of the payment;
559
(iv) the tax year to which the payment applies and date on which the payment is due;
560
(v) a mailing address to which the payment may be directed; and
561
(vi) information regarding an account at a depository institution to which the
562
payment may be directed, including the name of the depository institution, the
563
type of account, the account number, and the routing number for the account.
564
(ee) Notwithstanding Subsection (2), the commission shall provide the total amount of [
565
revenues] revenue collected by the commission under Subsection 59-5-202(5):
566
(i) at the request of a committee of the Legislature, the Office of the Legislative
567
Fiscal Analyst, or the Governor's Office of Planning and Budget, to the committee
568
or office for the time period specified by the committee or office; and
569
(ii) to the Division of Finance for purposes of the Division of Finance administering
570
Subsection 59-5-202(5).
571
(ff) Notwithstanding Subsection (2), the commission may provide the Department of
- 17 - 4th Sub. (Green) H.B. 60 03-04 08:09
572
Agriculture and Food with information from a return filed in accordance with
573
Chapter 31, Cannabinoid Licensing and Tax Act.
574
(gg) Notwithstanding Subsection (2), the commission shall provide the Department of
575
Workforce Services with the information described in Section 35A-3-105.
576
(5)(a) Each report and return shall be preserved for at least three years.
577
(b) After the three-year period provided in Subsection (5)(a) the commission may
578
destroy a report or return.
579
(6)(a) Any individual who violates this section is guilty of a class A misdemeanor.
580
(b) If the individual described in Subsection (6)(a) is an officer or employee of the state,
581
the individual shall be dismissed from office and be disqualified from holding public
582
office in this state for a period of five years thereafter.
583
(c) Notwithstanding Subsection (6)(a) or (b), GOEO, when requesting information in
584
accordance with Subsection (4)(n)(iii), or an individual who requests information in
585
accordance with Subsection (4)(n)(v):
586
(i) is not guilty of a class A misdemeanor; and
587
(ii) is not subject to:
588
(A) dismissal from office in accordance with Subsection (6)(b); or
589
(B) disqualification from holding public office in accordance with Subsection
590
(6)(b).
591
(d) Notwithstanding Subsection (6)(a) or (b), for a disclosure of information to the
592
Office of the Legislative Auditor General in accordance with Title 36, Chapter 12,
593
Legislative Organization, an individual described in Subsection (2):
594
(i) is not guilty of a class A misdemeanor; and
595
(ii) is not subject to:
596
(A) dismissal from office in accordance with Subsection (6)(b); or
597
(B) disqualification from holding public office in accordance with Subsection
598
(6)(b).
599
(7) Except as provided in Section 59-1-404, this part does not apply to the property tax.
600
Section 6. Section 59-1-1801 is enacted to read:
601
Part 18. Reportable Transactions by Persons Other than Taxpayers
602
59-1-1801 (Effective 01/01/26). Definitions.
603
As used in this part Ŝ→ [, ] :
603a
(1) "Participating payee" means the same as that term is defined in 26 U.S.C. Sec.
603b
6050W.
- 18 - 03-04 08:09 4th Sub. (Green) H.B. 60
603c
(2) ["payment] "Payment ←Ŝ settlement entity" means the same as that term is
603d
defined in 26 U.S.C. Sec. 6050W.
605
Section 7. Section 59-1-1802 is enacted to read:
606
59-1-1802 (Effective 01/01/26). Reporting by payment settlement entity.
607
A payment settlement entity that is required to file a return in accordance with 26 U.S.C.
608
Sec. 6050W shall file a return containing the same information with the commission Ŝ→ for
607a
each participating payee with an address in Utah ←Ŝ :
609
(1) electronically;
610
(2) in a format approved by the commission; and
611
(3) within 30 days after the day on which the payment settlement entity is required to file a
612
return with the Internal Revenue Service.
613
Section 8. Section 59-7-614 is amended to read:
614
59-7-614 (Effective 05/07/25) (Applies beginning 01/01/25). Clean energy systems
615
tax credits -- Definitions -- Certification -- Rulemaking authority.
616
(1) As used in this section:
617
(a)(i) "Active solar system" means a system of equipment that is capable of:
618
(A) collecting and converting incident solar radiation into thermal, mechanical, or
619
electrical energy; and
620
(B) transferring a form of energy described in Subsection (1)(a)(i)(A) by a
621
separate apparatus to storage or to the point of use.
622
(ii) "Active solar system" includes water heating, space heating or cooling, and
623
electrical or mechanical energy generation.
624
(b) "Biomass system" means a system of apparatus and equipment for use in:
625
(i) converting material into biomass energy, as defined in Section 59-12-102; and
626
(ii) transporting the biomass energy by separate apparatus to the point of use or
627
storage.
628
(c) "Clean energy source" means the same as that term is defined in Section 54-17-601.
629
(d) "Commercial energy system" means a system that is:
630
(i)(A) an active solar system;
631
(B) a biomass system;
632
(C) a direct use geothermal system;
633
(D) a geothermal electricity system;
634
(E) a geothermal heat pump system;
635
(F) a hydroenergy system;
- 19 - 4th Sub. (Green) H.B. 60 03-04 08:09
636
(G) a passive solar system; or
637
(H) a wind system;
638
(ii) located in the state; and
639
(iii) used:
640
(A) to supply energy to a commercial unit; or
641
(B) as a commercial enterprise.
642
(e) "Commercial enterprise" means an entity, the purpose of which is to produce:
643
(i) electrical, mechanical, or thermal energy for sale from a commercial energy
644
system; or
645
(ii) hydrogen for sale from a hydrogen production system.
646
(f)(i) "Commercial unit" means a building or structure, other than a residence, that an
647
entity uses to transact business.
648
(ii) Notwithstanding Subsection (1)(f)(i):
649
(A) with respect to an active solar system used for agricultural water pumping or a
650
wind system, each individual energy generating device is considered to be a
651
commercial unit; or
652
(B) if an energy system is the building or structure that an entity uses to transact
653
business, a commercial unit is the complete energy system itself.
654
(g) "Direct use geothermal system" means a system of apparatus and equipment that
655
enables the direct use of geothermal energy to meet energy needs, including heating a
656
building, an industrial process, and aquaculture.
657
(h) "Geothermal electricity" means energy that is:
658
(i) contained in heat that continuously flows outward from the earth; and
659
(ii) used as a sole source of energy to produce electricity.
660
(i) "Geothermal energy" means energy generated by heat that is contained in the earth.
661
(j) "Geothermal heat pump system" means a system of apparatus and equipment that:
662
(i) enables the use of thermal properties contained in the earth at temperatures well
663
below 100 degrees Fahrenheit; and
664
(ii) helps meet heating and cooling needs of a structure.
665
(k) "Hydroenergy system" means a system of apparatus and equipment that is capable of:
666
(i) intercepting and converting kinetic water energy into electrical or mechanical
667
energy; and
668
(ii) transferring this form of energy by separate apparatus to the point of use or
669
storage.
- 20 - 03-04 08:09 4th Sub. (Green) H.B. 60
670
(l) "Hydrogen production system" means a system of apparatus and equipment, located
671
in this state, that uses:
672
(i) electricity from a clean energy source to create hydrogen gas from water,
673
regardless of whether the clean energy source is at a separate facility or the same
674
facility as the system of apparatus and equipment; or
675
(ii) uses renewable natural gas to produce hydrogen gas.
676
(m) "Office" means the Office of Energy Development created in Section 79-6-401.
677
(n)(i) "Passive solar system" means a direct thermal system that utilizes the structure
678
of a building and the structure's operable components to provide for collection,
679
storage, and distribution of heating or cooling during the appropriate times of the
680
year by utilizing the climate resources available at the site.
681
(ii) "Passive solar system" includes those portions and components of a building that
682
are expressly designed and required for the collection, storage, and distribution of
683
solar energy.
684
(o) "Photovoltaic system" means an active solar system that generates electricity from
685
sunlight.
686
(p)(i) "Principal recovery portion" means the portion of a lease payment that
687
constitutes the cost a person incurs in acquiring a commercial energy system.
688
(ii) "Principal recovery portion" does not include:
689
(A) an interest charge; or
690
(B) a maintenance expense.
691
(q) "Residential energy system" means the following used to supply energy to or for a
692
residential unit:
693
(i) an active solar system;
694
(ii) a biomass system;
695
(iii) a direct use geothermal system;
696
(iv) a geothermal heat pump system;
697
(v) a hydroenergy system;
698
(vi) a passive solar system; or
699
(vii) a wind system.
700
(r)(i) "Residential unit" means a house, condominium, apartment, or similar dwelling
701
unit that:
702
(A) is located in the state; and
703
(B) serves as a dwelling for a person, group of persons, or a family.
- 21 - 4th Sub. (Green) H.B. 60 03-04 08:09
704
(ii) "Residential unit" does not include property subject to a fee under:
705
(A) Section 59-2-405;
706
(B) Section 59-2-405.1;
707
(C) Section 59-2-405.2;
708
(D) Section 59-2-405.3; or
709
(E) Section 72-10-110.5.
710
(s) "Wind system" means a system of apparatus and equipment that is capable of:
711
(i) intercepting and converting wind energy into mechanical or electrical energy; and
712
(ii) transferring these forms of energy by a separate apparatus to the point of use,
713
sale, or storage.
714
(2) A taxpayer may claim an energy system tax credit as provided in this section against a
715
tax due under this chapter for a taxable year.
716
(3)(a) Subject to the other provisions of this Subsection (3), a taxpayer may claim a
717
nonrefundable tax credit under this Subsection (3) with respect to a residential unit
718
the taxpayer owns or uses if:
719
(i) the taxpayer:
720
(A) purchases and completes a residential energy system to supply all or part of
721
the energy required for the residential unit; or
722
(B) participates in the financing of a residential energy system to supply all or part
723
of the energy required for the residential unit; and
724
(ii) the taxpayer obtains a written certification from the office in accordance with
725
Subsection (8).
726
(b)(i) Subject to Subsections (3)(b)(ii) through (iv) and, as applicable, Subsection
727
(3)(c) or (d), the tax credit is equal to 25% of the reasonable costs of each
728
residential energy system installed with respect to each residential unit the
729
taxpayer owns or uses.
730
(ii) A tax credit under this Subsection (3) may include installation costs.
731
(iii) A taxpayer may claim a tax credit under this Subsection (3) for the taxable year
732
in which the residential energy system is completed and placed in service.
733
(iv) If the amount of a tax credit under this Subsection (3) exceeds a taxpayer's tax
734
liability under this chapter for a taxable year, the taxpayer may carry forward the
735
amount of the tax credit exceeding the liability for a period that does not exceed
736
the next four taxable years.
737
(c) The total amount of tax credit a taxpayer may claim under this Subsection (3) for a
- 22 - 03-04 08:09 4th Sub. (Green) H.B. 60
738
residential energy system, other than a photovoltaic system, may not exceed $2,000
739
per residential unit.
740
(d) The total amount of tax credit a taxpayer may claim under this Subsection (3) for a
741
photovoltaic system may not exceed:
742
(i) for a system installed on or after January 1, 2018, but on or before December 31,
743
2020, $1,600;
744
(ii) for a system installed on or after January 1, 2021, but on or before December 31,
745
2021, $1,200;
746
(iii) for a system installed on or after January 1, 2022, but on or before December 31,
747
2022, $800;
748
(iv) for a system installed on or after January 1, 2023, but on or before December 31,
749
2023, $400; and
750
(v) for a system installed on or after January 1, 2024, $0.
751
(e) If a taxpayer sells a residential unit to another person before the taxpayer claims the
752
tax credit under this Subsection (3):
753
(i) the taxpayer may assign the tax credit to the other person; and
754
(ii)(A) if the other person files a return under this chapter, the other person may
755
claim the tax credit under this section as if the other person had met the
756
requirements of this section to claim the tax credit; or
757
(B) if the other person files a return under Chapter 10, Individual Income Tax Act,
758
the other person may claim the tax credit under Section 59-10-1014 as if the
759
other person had met the requirements of Section 59-10-1014 to claim the tax
760
credit.
761
(4)(a) Subject to the other provisions of this Subsection (4), a taxpayer may claim a
762
refundable tax credit under this Subsection (4) with respect to a commercial energy
763
system if:
764
(i) the commercial energy system does not use:
765
(A) wind, geothermal electricity, solar, or biomass equipment capable of
766
producing a total of 660 or more kilowatts of electricity; or
767
(B) solar equipment capable of producing 2,000 or more kilowatts of electricity;
768
(ii) the taxpayer purchases or participates in the financing of the commercial energy
769
system;
770
(iii)(A) the commercial energy system supplies all or part of the energy required
771
by commercial units owned or used by the taxpayer; or
- 23 - 4th Sub. (Green) H.B. 60 03-04 08:09
772
(B) the taxpayer sells all or part of the energy produced by the commercial energy
773
system as a commercial enterprise;
774
(iv) the taxpayer has not claimed and will not claim a tax credit under Subsection (7)
775
for hydrogen production using electricity for which the taxpayer claims a tax
776
credit under this Subsection (4); and
777
(v) the taxpayer obtains a written certification from the office in accordance with
778
Subsection (8).
779
(b)(i) Subject to Subsections (4)(b)(ii) through (iv), the tax credit is equal to 10% of
780
the reasonable costs of the commercial energy system.
781
(ii) A tax credit under this Subsection (4) may include installation costs.
782
(iii) A taxpayer is eligible to claim a tax credit under this Subsection (4) for the
783
taxable year in which the commercial energy system is completed and placed in
784
service.
785
(iv) The total amount of tax credit a taxpayer may claim under this Subsection (4)
786
may not exceed $50,000 per commercial unit.
787
(c)(i) Subject to Subsections (4)(c)(ii) and (iii), a taxpayer that is a lessee of a
788
commercial energy system installed on a commercial unit may claim a tax credit
789
under this Subsection (4) if the taxpayer confirms that the lessor irrevocably elects
790
not to claim the tax credit.
791
(ii) A taxpayer described in Subsection (4)(c)(i) may claim as a tax credit under this
792
Subsection (4) only the principal recovery portion of the lease payments.
793
(iii) A taxpayer described in Subsection (4)(c)(i) may claim a tax credit under this
794
Subsection (4) for a period that does not exceed seven taxable years after the day
795
on which the lease begins, as stated in the lease agreement.
796
(5)(a) Subject to the other provisions of this Subsection (5), a taxpayer may claim a
797
refundable tax credit under this Subsection (5) with respect to a commercial energy
798
system if:
799
(i) the commercial energy system uses wind, geothermal electricity, or biomass
800
equipment capable of producing a total of 660 or more kilowatts of electricity;
801
(ii)(A) the commercial energy system supplies all or part of the energy required by
802
commercial units owned or used by the taxpayer; or
803
(B) the taxpayer sells all or part of the energy produced by the commercial energy
804
system as a commercial enterprise;
805
(iii) the taxpayer has not claimed and will not claim a tax credit under Subsection (7)
- 24 - 03-04 08:09 4th Sub. (Green) H.B. 60
806
for hydrogen production using electricity for which the taxpayer claims a tax
807
credit under this Subsection (5); and
808
(iv) the taxpayer obtains a written certification from the office in accordance with
809
Subsection (8).
810
(b)(i) Subject to Subsection (5)(b)(ii), a tax credit under this Subsection (5) is equal
811
to the product of:
812
(A) 0.35 cents; and
813
(B) the kilowatt hours of electricity produced and used or sold during the taxable
814
year.
815
(ii) A taxpayer is eligible to claim a tax credit under this Subsection (5) for
816
production occurring during a period of 48 months beginning with the month in
817
which the commercial energy system is placed in commercial service.
818
(c) A taxpayer that is a lessee of a commercial energy system installed on a commercial
819
unit may claim a tax credit under this Subsection (5) if the taxpayer confirms that the
820
lessor irrevocably elects not to claim the tax credit.
821
(6)(a) Subject to the other provisions of this Subsection (6), a taxpayer may claim a
822
refundable tax credit as provided in this Subsection (6) if:
823
(i) the taxpayer owns a commercial energy system that uses solar equipment capable
824
of producing a total of 660 or more kilowatts of electricity;
825
(ii)(A) the commercial energy system supplies all or part of the energy required by
826
commercial units owned or used by the taxpayer; or
827
(B) the taxpayer sells all or part of the energy produced by the commercial energy
828
system as a commercial enterprise;
829
(iii) the taxpayer does not claim a tax credit under Subsection (4) and has not claimed
830
and will not claim a tax credit under Subsection (7) for hydrogen production using
831
electricity for which a taxpayer claims a tax credit under this Subsection (6); and
832
(iv) the taxpayer obtains a written certification from the office in accordance with
833
Subsection (8).
834
(b)(i) Subject to Subsection (6)(b)(ii), a tax credit under this Subsection (6) is equal
835
to the product of:
836
(A) 0.35 cents; and
837
(B) the kilowatt hours of electricity produced and used or sold during the taxable
838
year.
839
(ii) A taxpayer is eligible to claim a tax credit under this Subsection (6) for
- 25 - 4th Sub. (Green) H.B. 60 03-04 08:09
840
production occurring during a period of 48 months beginning with the month in
841
which the commercial energy system is placed in commercial service.
842
(c) A taxpayer that is a lessee of a commercial energy system installed on a commercial
843
unit may claim a tax credit under this Subsection (6) if the taxpayer confirms that the
844
lessor irrevocably elects not to claim the tax credit.
845
(7)(a) A taxpayer may claim a refundable tax credit as provided in this Subsection (7) if:
846
(i) the taxpayer owns a hydrogen production system;
847
(ii) the hydrogen production system is completed and placed in service on or after
848
January 1, 2022;
849
(iii) the taxpayer sells as a commercial enterprise, or supplies for the taxpayer's own
850
use in commercial units, the hydrogen produced from the hydrogen production
851
system;
852
(iv) the taxpayer has not claimed and will not claim a tax credit under Subsection (4),
853
(5), or (6) or Section 59-7-626 for electricity or hydrogen used to meet the
854
requirements of this Subsection (7); and
855
(v) the taxpayer obtains a written certification from the office in accordance with
856
Subsection (8).
857
(b)(i) Subject to Subsections (7)(b)(ii) and (iii), a tax credit under this Subsection (7)
858
is equal to the product of:
859
(A) $0.12; and
860
(B) the number of kilograms of hydrogen produced during the taxable year.
861
(ii) A taxpayer may not receive a tax credit under this Subsection (7) for more than
862
5,600 metric tons of hydrogen per taxable year.
863
(iii) A taxpayer is eligible to claim a tax credit under this Subsection (7) for
864
production occurring during a period of 48 months beginning with the month in
865
which the hydrogen production system is placed in commercial service.
866
(8)(a) Before a taxpayer may claim a tax credit under this section, the taxpayer shall
867
obtain a written certification from the office.
868
(b) The office shall issue a taxpayer a written certification if the office determines that:
869
(i) the taxpayer meets the requirements of this section to receive a tax credit; and
870
(ii) the residential energy system, the commercial energy system, or the hydrogen
871
production system with respect to which the taxpayer seeks to claim a tax credit:
872
(A) has been completely installed;
873
(B) is a viable system for saving or producing energy from clean resources; and
- 26 - 03-04 08:09 4th Sub. (Green) H.B. 60
874
(C) is safe, reliable, efficient, and technically feasible to ensure that the residential
875
energy system, the commercial energy system, or the hydrogen production
876
system uses the state's clean and nonrenewable energy resources in an
877
appropriate and economic manner.
878
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
879
office may make rules:
880
(i) for determining whether a residential energy system, a commercial energy system,
881
or a hydrogen production system meets the requirements of Subsection (8)(b)(ii);
882
and
883
(ii) for purposes of a tax credit under Subsection (3) or (4), establishing the
884
reasonable costs of a residential energy system or a commercial energy system, as
885
an amount per unit of energy production.
886
(d) A taxpayer that obtains a written certification from the office shall retain the
887
certification for the same time period a person is required to keep books and records
888
under Section 59-1-1406.
889
(e) The office shall submit to the commission an electronic list that includes:
890
(i) the name and identifying information of each taxpayer to which the office issues a
891
written certification; and
892
(ii) for each taxpayer:
893
(A) the amount of the tax credit listed on the written certification; and
894
(B) the date the clean energy system was installed.
895
(9) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
896
commission may make rules to address the certification of a tax credit under this section.
897
(10) A tax credit under this section is in addition to any tax credits provided under the laws
898
or rules and regulations of the United States.
899
(11) A taxpayer may not claim or carry forward a tax credit described in this section in a
900
taxable year during which the taxpayer claims or carries forward a tax credit under
901
Section 59-7-614.7.
902
Section 9. Section 59-7-614.10 is amended to read:
903
59-7-614.10 (Effective 05/07/25) (Applies beginning 01/01/25). Nonrefundable
904
enterprise zone tax credit.
905
(1) As used in this section:
906
(a) "Business entity" means a corporation that meets the definition of "business entity"
907
as that term is defined in Section 63N-2-202.
- 27 - 4th Sub. (Green) H.B. 60 03-04 08:09
908
(b) "Office" means the Governor's Office of Economic Opportunity created in Section
909
63N-1a-301.
910
(2) Subject to the provisions of this section, for a taxable year beginning before January 1,
911
2025, a business entity may claim a nonrefundable enterprise zone tax credit as
912
described in Section 63N-2-213.
913
(3) The enterprise zone tax credit under this section is the amount listed as the tax credit
914
amount on the tax credit certificate that the office issues to the business entity for the
915
taxable year.
916
(4) A business entity may carry forward a tax credit under this section for a period that does
917
not exceed the next three taxable years, if the amount of the tax credit exceeds the
918
business entity's tax liability under this chapter for that taxable year.
919
(5)(a) In accordance with Section 59-7-159, the Revenue and Taxation Interim
920
Committee shall study the tax credit allowed by this section and make
921
recommendations concerning whether the tax credit should be continued, modified,
922
or repealed.
923
(b)(i) Except as provided in Subsection (5)(b)(ii), for purposes of the study required
924
by this Subsection (5), the office shall provide by electronic means the following
925
information for each calendar year to the Office of the Legislative Fiscal Analyst:
926
(A) the amount of tax credits provided in each development zone;
927
(B) the number of new full-time employee positions reported to obtain tax credits
928
in each development zone;
929
(C) the amount of tax credits awarded for rehabilitating a building in each
930
development zone;
931
(D) the amount of tax credits awarded for investing in a plant, equipment, or other
932
depreciable property in each development zone;
933
(E) the information related to the tax credit contained in the office's latest report
934
under Section 63N-1a-301; and
935
(F) any other information that the Office of the Legislative Fiscal Analyst requests.
936
(ii)(A) In providing the information described in Subsection (5)(b)(i), the office
937
shall redact information that identifies a recipient of a tax credit under this
938
section.
939
(B) If, notwithstanding the redactions made under Subsection (5)(b)(ii)(A),
940
reporting the information described in Subsection (5)(b)(i) might disclose the
941
identity of a recipient of a tax credit, the office may file a request with the
- 28 - 03-04 08:09 4th Sub. (Green) H.B. 60
942
Revenue and Taxation Interim Committee to provide the information described
943
in Subsection (5)(b)(i) in the aggregate for all development zones that receive
944
the tax credit under this section.
945
(c) As part of the study required by this Subsection (5), the Office of the Legislative
946
Fiscal Analyst shall report to the Revenue and Taxation Interim Committee a
947
summary and analysis of the information provided to the Office of the Legislative
948
Fiscal Analyst by the office under Subsection (5)(b).
949
(d) The Revenue and Taxation Interim Committee shall ensure that the
950
recommendations described in Subsection (5)(a) include an evaluation of:
951
(i) the cost of the tax credit to the state;
952
(ii) the purpose and effectiveness of the tax credit; and
953
(iii) the extent to which the state benefits from the tax credit.
954
Section 10. Section 59-10-104.1 is amended to read:
955
59-10-104.1 (Effective 01/01/26). Exemption from taxation.
956
(1) For purposes of this section:
957
(a) "Modified adjusted gross income" means the amount calculated by:
958
(i) adding the individual's adjusted gross income on the individual's federal individual
959
income tax return for the taxable year and any additions required by Section
960
59-10-114 for the taxable year; and
961
(ii) subtracting from the amount calculated in accordance with Subsection (1)(a)(i),
962
any subtractions required by Section 59-10-114 for the taxable year.
963
(b) "Personal exemptions" means the total exemption amount an individual is allowed to
964
claim for the taxable year under Section 151, Internal Revenue Code, for:
965
(i) the individual;
966
(ii) the individual's spouse; and
967
(iii) the individual's dependents.
968
[(b)] (c) "Standard deduction":
969
(i) means the standard deduction an individual is allowed to claim for the taxable
970
year under Section 63, Internal Revenue Code; and
971
(ii) notwithstanding Subsection [(1)(b)(i)] (1)(c)(i), does not include an additional
972
amount allowed under Section 63(f), Internal Revenue Code, for an individual or
973
an individual's spouse who is:
974
(A) blind; or
975
(B) 65 years of age or older.
- 29 - 4th Sub. (Green) H.B. 60 03-04 08:09
976
(2) [For taxable years beginning on or after January 1, 2002, an] An individual is exempt
977
from a tax imposed by Section 59-10-104 or 59-10-116 if the individual's [adjusted
978
gross income on the individual's federal individual income tax return for the taxable year]
979
modified adjusted gross income is less than or equal to the sum of the individual's:
980
(a) personal exemptions for that taxable year; and
981
(b) standard deduction for that taxable year.
982
Section 11. Section 59-10-114 is amended to read:
983
59-10-114 (Effective 01/01/26). Additions to and subtractions from adjusted
984
gross income of an individual.
985
(1) There shall be added to adjusted gross income of a resident or nonresident individual:
986
(a) a lump sum distribution that the taxpayer does not include in adjusted gross income
987
on the taxpayer's federal individual income tax return for the taxable year;
988
(b) the amount of a child's income calculated under Subsection (4) that:
989
(i) a parent elects to report on the parent's federal individual income tax return for the
990
taxable year; and
991
(ii) the parent does not include in adjusted gross income on the parent's federal
992
individual income tax return for the taxable year;
993
(c)(i) a withdrawal from a medical care savings account and any penalty imposed for
994
the taxable year if:
995
(A) the resident or nonresident individual does not deduct the amounts on the
996
resident or nonresident individual's federal individual income tax return under
997
Section 220, Internal Revenue Code;
998
(B) the withdrawal is subject to Subsections 31A-32a-105(1) and (2); and
999
(C) the withdrawal is subtracted on, or used as the basis for claiming a tax credit
1000
on, a return the resident or nonresident individual files under this chapter;
1001
(ii) a disbursement required to be added to adjusted gross income in accordance with
1002
Subsection 31A-32a-105(3); or
1003
(iii) an amount required to be added to adjusted gross income in accordance with
1004
Subsection 31A-32a-105(5)(c);
1005
(d) the amount withdrawn under Title 53B, Chapter 8a, Utah Educational Savings Plan,
1006
from the account of a resident or nonresident individual who is an account owner as
1007
defined in Section 53B-8a-102, for the taxable year for which the amount is
1008
withdrawn, if that amount withdrawn from the account of the resident or nonresident
1009
individual who is the account owner:
- 30 - 03-04 08:09 4th Sub. (Green) H.B. 60
1010
(i) is not expended for:
1011
(A) higher education costs as defined in Section 53B-8a-102.5; or
1012
(B) a payment or distribution that qualifies as an exception to the additional tax
1013
for distributions not used for educational expenses provided in Sections 529(c)
1014
and 530(d), Internal Revenue Code; and
1015
(ii) is:
1016
(A) subtracted by the resident or nonresident individual:
1017
(I) who is the account owner; and
1018
(II) on the resident or nonresident individual's return filed under this chapter
1019
for a taxable year beginning on or before December 31, 2007; or
1020
(B) used as the basis for the resident or nonresident individual who is the account
1021
owner to claim a tax credit under Section 59-10-1017;
1022
(e) except as provided in Subsection (5), for bonds, notes, and other evidences of
1023
indebtedness acquired on or after January 1, 2003, the interest from bonds, notes, and
1024
other evidences of indebtedness:
1025
(i) issued by one or more of the following entities:
1026
(A) a state other than this state;
1027
(B) the District of Columbia;
1028
(C) a political subdivision of a state other than this state; or
1029
(D) an agency or instrumentality of an entity described in Subsections (1)(e)(i)(A)
1030
through (C); and
1031
(ii) to the extent the interest is not included in adjusted gross income on the taxpayer's
1032
federal income tax return for the taxable year;
1033
(f) subject to Subsection (2)(c), any distribution received by a resident beneficiary of a
1034
resident trust of income that was taxed at the trust level for federal tax purposes, but
1035
was subtracted from state taxable income of the trust pursuant to Subsection
1036
59-10-202(2)(b);
1037
(g) any distribution received by a resident beneficiary of a nonresident trust of
1038
undistributed distributable net income realized by the trust on or after January 1,
1039
2004, if that undistributed distributable net income was taxed at the trust level for
1040
federal tax purposes, but was not taxed at the trust level by any state, with
1041
undistributed distributable net income considered to be distributed from the most
1042
recently accumulated undistributed distributable net income;
1043
(h) any adoption expense:
- 31 - 4th Sub. (Green) H.B. 60 03-04 08:09
1044
(i) for which a resident or nonresident individual receives reimbursement from
1045
another person; and
1046
(ii) to the extent to which the resident or nonresident individual subtracts that
1047
adoption expense:
1048
(A) on a return filed under this chapter for a taxable year beginning on or before
1049
December 31, 2007; or
1050
(B) from federal taxable income on a federal individual income tax return;
1051
(i) the amount of tax paid on income attributed to the individual in accordance with
1052
Subsection 59-10-1403.2(2) that is not included in adjusted gross income; and
1053
(j) the amount of tax paid:
1054
(i) on income attributed to the individual and taxable in this state, that is not included
1055
in adjusted gross income;
1056
(ii) to another state; and
1057
(iii) that the commission determines is substantially similar to the tax imposed under
1058
Subsection 59-10-1403.2(2).
1059
(2) There shall be subtracted from adjusted gross income of a resident or nonresident
1060
individual:
1061
(a) the difference between:
1062
(i) the interest or a dividend on an obligation or security of the United States or an
1063
authority, commission, instrumentality, or possession of the United States, to the
1064
extent that interest or dividend is:
1065
(A) included in adjusted gross income for federal income tax purposes for the
1066
taxable year; and
1067
(B) exempt from state income taxes under the laws of the United States; and
1068
(ii) any interest on indebtedness incurred or continued to purchase or carry the
1069
obligation or security described in Subsection (2)(a)(i);
1070
(b) if the conditions of Subsection (3)(a) are met, the amount of income derived by a Ute
1071
tribal member:
1072
(i) during a time period that the Ute tribal member resides on homesteaded land
1073
diminished from the Uintah and Ouray Reservation; and
1074
(ii) from a source within the Uintah and Ouray Reservation;
1075
(c) an amount received by a resident or nonresident individual or distribution received
1076
by a resident or nonresident beneficiary of a resident trust:
1077
(i) if that amount or distribution constitutes a refund of taxes imposed by:
- 32 - 03-04 08:09 4th Sub. (Green) H.B. 60
1078
(A) a state; or
1079
(B) the District of Columbia; and
1080
(ii) to the extent that amount or distribution is included in adjusted gross income for
1081
that taxable year on the federal individual income tax return of the resident or
1082
nonresident individual or resident or nonresident beneficiary of a resident trust;
1083
(d) the amount of a railroad retirement benefit:
1084
(i) paid:
1085
(A) in accordance with The Railroad Retirement Act of 1974, 45 U.S.C. Sec. 231
1086
et seq.;
1087
(B) to a resident or nonresident individual; and
1088
(C) for the taxable year; and
1089
(ii) to the extent that railroad retirement benefit is included in adjusted gross income
1090
on that resident or nonresident individual's federal individual income tax return for
1091
that taxable year;
1092
(e) an amount:
1093
(i) received by an enrolled member of an American Indian tribe; and
1094
(ii) to the extent that the state is not authorized or permitted to impose a tax under this
1095
part on that amount in accordance with:
1096
(A) federal law;
1097
(B) a treaty; or
1098
(C) a final decision issued by a court of competent jurisdiction;
1099
(f) an amount received:
1100
(i) for the interest on a bond, note, or other obligation issued by an entity for which
1101
state statute provides an exemption of interest on its bonds from state individual
1102
income tax;
1103
(ii) by a resident or nonresident individual;
1104
(iii) for the taxable year; and
1105
(iv) to the extent the amount is included in adjusted gross income on the taxpayer's
1106
federal income tax return for the taxable year;
1107
(g) the amount of all income, including income apportioned to another state, of a
1108
nonmilitary spouse of an active duty military member if:
1109
(i) both the nonmilitary spouse and the active duty military member are nonresident
1110
individuals;
1111
(ii) the active duty military member is stationed in Utah;
- 33 - 4th Sub. (Green) H.B. 60 03-04 08:09
1112
(iii) the nonmilitary spouse is subject to the residency provisions of 50 U.S.C. Sec.
1113
4001(a)(2); and
1114
(iv) the income is included in adjusted gross income for federal income tax purposes
1115
for the taxable year;
1116
[(h) for a taxable year beginning on or after January 1, 2019, but beginning on or before
1117
December 31, 2019, only:]
1118
[(i) the amount of any FDIC premium paid or incurred by the taxpayer that is
1119
disallowed as a deduction for federal income tax purposes under Section 162(r),
1120
Internal Revenue Code, on the taxpayer's 2018 federal income tax return; plus]
1121
[(ii) the amount of any FDIC premium paid or incurred by the taxpayer that is
1122
disallowed as a deduction for federal income tax purposes under Section 162(r),
1123
Internal Revenue Code, for the taxable year;]
1124
[(i)] (h) [for a taxable year beginning on or after January 1, 2020, ]the amount of any
1125
FDIC premium paid or incurred by the taxpayer that is disallowed as a deduction for
1126
federal income tax purposes under Section 162(r), Internal Revenue Code, for the
1127
taxable year;[ and]
1128
[(j)] (i) an amount of a distribution from a qualified retirement plan under Section 401(a),
1129
Internal Revenue Code, if:
1130
(i) the amount of the distribution is included in adjusted gross income on the resident
1131
or nonresident individual's federal individual income tax return for the taxable
1132
year; and
1133
(ii) for the taxable year when the amount of the distribution was contributed to the
1134
qualified retirement plan, the amount of the distribution:
1135
(A) was not included in adjusted gross income on the resident or nonresident
1136
individual's federal individual income tax return for the taxable year; and
1137
(B) was taxed by another state of the United States, the District of Columbia, or a
1138
possession of the United States[.] ; and
1139
(j) the amount of any repayment in the current taxable year of social security income
1140
received in a previous taxable year if:
1141
(i) the individual claimed a credit for the repayment on the individual's federal
1142
individual income tax return for the current taxable year; and
1143
(ii) the individual did not claim a tax credit under Section 59-10-1042 for the taxable
1144
year in which the individual received the social security income.
1145
(3)(a) A subtraction for an amount described in Subsection (2)(b) is allowed only if:
- 34 - 03-04 08:09 4th Sub. (Green) H.B. 60
1146
(i) the taxpayer is a Ute tribal member; and
1147
(ii) the governor and the Ute tribe execute and maintain an agreement meeting the
1148
requirements of this Subsection (3).
1149
(b) The agreement described in Subsection (3)(a):
1150
(i) may not:
1151
(A) authorize the state to impose a tax in addition to a tax imposed under this
1152
chapter;
1153
(B) provide a subtraction under this section greater than or different from the
1154
subtraction described in Subsection (2)(b); or
1155
(C) affect the power of the state to establish rates of taxation; and
1156
(ii) shall:
1157
(A) provide for the implementation of the subtraction described in Subsection
1158
(2)(b);
1159
(B) be in writing;
1160
(C) be signed by:
1161
(I) the governor; and
1162
(II) the chair of the Business Committee of the Ute tribe;
1163
(D) be conditioned on obtaining any approval required by federal law; and
1164
(E) state the effective date of the agreement.
1165
(c)(i) The governor shall report to the commission by no later than February 1 of each
1166
year regarding whether or not an agreement meeting the requirements of this
1167
Subsection (3) is in effect.
1168
(ii) If an agreement meeting the requirements of this Subsection (3) is terminated, the
1169
subtraction permitted under Subsection (2)(b) is not allowed for taxable years
1170
beginning on or after the January 1 following the termination of the agreement.
1171
(d) For purposes of Subsection (2)(b) and in accordance with Title 63G, Chapter 3, Utah
1172
Administrative Rulemaking Act, the commission may make rules:
1173
(i) for determining whether income is derived from a source within the Uintah and
1174
Ouray Reservation; and
1175
(ii) that are substantially similar to how adjusted gross income derived from Utah
1176
sources is determined under Section 59-10-117.
1177
(4)(a) For purposes of this Subsection (4), "Form 8814" means:
1178
(i) the federal individual income tax Form 8814, Parents' Election To Report Child's
1179
Interest and Dividends; or
- 35 - 4th Sub. (Green) H.B. 60 03-04 08:09
1180
(ii)(A) a form designated by the commission in accordance with Subsection
1181
(4)(a)(ii)(B) as being substantially similar to 2000 Form 8814 if for purposes of
1182
federal individual income taxes the information contained on 2000 Form 8814
1183
is reported on a form other than Form 8814; and
1184
(B) for purposes of Subsection (4)(a)(ii)(A) and in accordance with Title 63G,
1185
Chapter 3, Utah Administrative Rulemaking Act, the commission may make
1186
rules designating a form as being substantially similar to 2000 Form 8814 if for
1187
purposes of federal individual income taxes the information contained on 2000
1188
Form 8814 is reported on a form other than Form 8814.
1189
(b) The amount of a child's income added to adjusted gross income under Subsection
1190
(1)(b) is equal to the difference between:
1191
(i) the lesser of:
1192
(A) the base amount specified on Form 8814; and
1193
(B) the sum of the following reported on Form 8814:
1194
(I) the child's taxable interest;
1195
(II) the child's ordinary dividends; and
1196
(III) the child's capital gain distributions; and
1197
(ii) the amount not taxed that is specified on Form 8814.
1198
(5) Notwithstanding Subsection (1)(e), interest from bonds, notes, and other evidences of
1199
indebtedness issued by an entity described in Subsections (1)(e)(i)(A) through (D) may
1200
not be added to adjusted gross income of a resident or nonresident individual if, as
1201
annually determined by the commission:
1202
(a) for an entity described in Subsection (1)(e)(i)(A) or (B), the entity and all of the
1203
political subdivisions, agencies, or instrumentalities of the entity do not impose a tax
1204
based on income on any part of the bonds, notes, and other evidences of indebtedness
1205
of this state; or
1206
(b) for an entity described in Subsection (1)(e)(i)(C) or (D), the following do not impose
1207
a tax based on income on any part of the bonds, notes, and other evidences of
1208
indebtedness of this state:
1209
(i) the entity; or
1210
(ii)(A) the state in which the entity is located; or
1211
(B) the District of Columbia, if the entity is located within the District of
1212
Columbia.
1213
Section 12. Section 59-10-510 is amended to read:
- 36 - 03-04 08:09 4th Sub. (Green) H.B. 60
1214
59-10-510 (Effective 01/01/26). Return of electing small business corporation.
1215
An electing small business corporation, as defined in Section [1371(a)(2)] 1362, Internal
1216
Revenue Code, shall make a return for each taxable year, stating specifically:
1217
(1) the items of the electing small business corporation's gross income and the deductions
1218
allowable by Subtitle A, Internal Revenue Code;
1219
(2) the names and addresses of all persons owning stock in the electing small business
1220
corporation at any time during the taxable year;
1221
(3) the number of shares of stock owned by each shareholder at all times during the taxable
1222
year to each shareholder;
1223
(4) the date of each distribution to a shareholder; and
1224
(5) other information as the commission may prescribe by:
1225
(a) form; or
1226
(b) administrative rule made in accordance with Title 63G, Chapter 3, Utah
1227
Administrative Rulemaking Act.
1228
Section 13. Section 59-10-1037 is amended to read:
1229
59-10-1037 (Effective 05/07/25) (Applies beginning 01/01/25). Nonrefundable
1230
enterprise zone tax credit.
1231
(1) As used in this section:
1232
(a) "Business entity" means a claimant, estate, or trust that meets the definition of
1233
"business entity" as that term is defined in Section 63N-2-202.
1234
(b) "Office" means the Governor's Office of Economic Opportunity created in Section
1235
63N-1a-301.
1236
(2) Subject to the provisions of this section, for a taxable year beginning before January 1,
1237
2025, a business entity may claim a nonrefundable enterprise zone tax credit as
1238
described in Section 63N-2-213.
1239
(3) The enterprise zone tax credit under this section is the amount listed as the tax credit
1240
amount on the tax credit certificate that the office issues to the business entity for the
1241
taxable year.
1242
(4) A business entity may carry forward a tax credit under this section for a period that does
1243
not exceed the next three taxable years, if the amount of the tax credit exceeds the
1244
business entity's tax liability under this chapter for that taxable year.
1245
(5)(a) In accordance with Section 59-10-137, the Revenue and Taxation Interim
1246
Committee shall study the tax credit allowed by this section and make
1247
recommendations concerning whether the tax credit should be continued, modified,
- 37 - 4th Sub. (Green) H.B. 60 03-04 08:09
1248
or repealed.
1249
(b)(i) Except as provided in Subsection (5)(b)(ii), for purposes of the study required
1250
by this Subsection (5), the office shall provide by electronic means the following
1251
information, if available to the office, for each calendar year to the Office of the
1252
Legislative Fiscal Analyst:
1253
(A) the amount of tax credits provided in each development zone;
1254
(B) the number of new full-time employee positions reported to obtain tax credits
1255
in each development zone;
1256
(C) the amount of tax credits awarded for rehabilitating a building in each
1257
development zone;
1258
(D) the amount of tax credits awarded for investing in a plant, equipment, or other
1259
depreciable property in each development zone;
1260
(E) the information related to the tax credit contained in the office's latest report
1261
under Section 63N-1a-306; and
1262
(F) other information that the Office of the Legislative Fiscal Analyst requests.
1263
(ii)(A) In providing the information described in Subsection (5)(b)(i), the office
1264
shall redact information that identifies a recipient of a tax credit under this
1265
section.
1266
(B) If, notwithstanding the redactions made under Subsection (5)(b)(ii)(A),
1267
reporting the information described in Subsection (5)(b)(i) might disclose the
1268
identity of a recipient of a tax credit, the office may file a request with the
1269
Revenue and Taxation Interim Committee to provide the information described
1270
in Subsection (5)(b)(i) in the aggregate for all development zones that receive
1271
the tax credit under this section.
1272
(c) As part of the study required by this Subsection (5), the Office of the Legislative
1273
Fiscal Analyst shall report to the Revenue and Taxation Interim Committee a
1274
summary and analysis of the information provided to the Office of the Legislative
1275
Fiscal Analyst by the office under Subsection (5)(b).
1276
(d) The Revenue and Taxation Interim Committee shall ensure that the
1277
recommendations described in Subsection (5)(a) include an evaluation of:
1278
(i) the cost of the tax credit to the state;
1279
(ii) the purpose and effectiveness of the tax credit; and
1280
(iii) the extent to which the state benefits from the tax credit.
1281
Section 14. Section 59-10-1042 is amended to read:
- 38 - 03-04 08:09 4th Sub. (Green) H.B. 60
1282
59-10-1042 (Effective 01/01/26). Nonrefundable tax credit for social security
1283
benefits.
1284
(1) As used in this section:
1285
(a) "Head of household filing status" means the same as that term is defined in Section
1286
59-10-1018.
1287
(b) "Joint filing status" means the same as that term is defined in Section 59-10-1018.
1288
(c) "Married filing separately status" means a married individual who:
1289
(i) does not file a single federal individual income tax return jointly with that married
1290
individual's spouse for the taxable year; and
1291
(ii) files a single federal individual income tax return for the taxable year.
1292
(d) "Modified adjusted gross income" means the sum of the following for a claimant or,
1293
if the claimant's return under this chapter is allowed a joint filing status, the claimant
1294
and the claimant's spouse:
1295
(i) adjusted gross income for the taxable year for which a tax credit is claimed under
1296
this section;
1297
(ii) any interest income that is not included in adjusted gross income for the taxable
1298
year described in Subsection (1)(d)(i); and
1299
(iii) any addition to adjusted gross income required by Section 59-10-114 for the
1300
taxable year described in Subsection (1)(d)(i).
1301
(e) "Single filing status" means a single individual who files a single federal individual
1302
income tax return for the taxable year.
1303
(f) "Social security benefit" means an amount received by a claimant as a monthly
1304
benefit in accordance with the Social Security Act, 42 U.S.C. Sec. 401 et seq.
1305
(2) Except as provided in Section 59-10-1002.2 and Subsections (3) and (4), each claimant
1306
on a return that receives a social security benefit may claim a nonrefundable tax credit
1307
against taxes otherwise due under this part equal to the product of:
1308
(a) the percentage listed in Subsection 59-10-104(2); and
1309
(b) the claimant's social security benefit that is included in adjusted gross income on the
1310
claimant's federal income tax return for the taxable year.
1311
(3) A claimant may not:
1312
(a) carry forward or carry back the amount of a tax credit under this section that exceeds
1313
the claimant's tax liability for the taxable year; or
1314
(b) claim a tax credit under this section for a taxable year if a tax credit under Section
1315
59-10-1019 is claimed on the claimant's return for the same taxable year.
- 39 - 4th Sub. (Green) H.B. 60 03-04 08:09
1316
(4) The tax credit allowed by Subsection (2) claimed on a return filed under this part shall
1317
be reduced by $.025 for each dollar by which modified adjusted gross income for
1318
purposes of the return exceeds:
1319
(a) for a [federal individual income tax ]return filed under this chapter that is allowed a
1320
married filing separately status, $37,500;
1321
(b) for a [federal individual income tax ]return filed under this chapter that is allowed a
1322
single filing status, $45,000;
1323
(c) for a [federal individual income tax ]return filed under this chapter that is allowed a
1324
head of household filing status, $75,000; or
1325
(d) for a return filed under this chapter that is allowed a joint filing status, $75,000.
1326
(5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1327
commission may make rules governing the calculation and method for claiming the tax
1328
credit described in this section.
1329
Section 15. Section 59-10-1045 is amended to read:
1330
59-10-1045 (Effective 01/01/26) (Applies beginning 01/01/25). Nonrefundable tax
1331
credit for taxes paid by pass-through entity.
1332
(1) As used in this section, "taxed pass-through entity taxpayer" means a resident or
1333
nonresident individual who:
1334
(a) has income attributed to the individual by a pass-through entity;
1335
(b) receives the income described in Subsection (1)(a) after the pass-through entity pays
1336
the tax described in Subsection 59-10-1403.2(2); and
1337
(c) adds the amount of tax paid on the income described in Subsection (1)(a) to adjusted
1338
gross income in accordance with Subsection 59-10-114(1)(i).
1339
(2)(a) A taxed pass-through entity taxpayer may claim a nonrefundable tax credit for the
1340
taxes imposed under Subsection 59-10-1403.2(2).
1341
(b) The tax credit is equal to the amount of the tax paid under Subsection
1342
59-10-1403.2(2) by the pass-through entity on the income attributed to the taxed
1343
pass-through entity taxpayer.
1344
(3)(a) A taxed pass-through entity taxpayer may carry forward the amount of the tax
1345
credit that exceeds the taxed pass-through entity taxpayer's tax liability for a period
1346
that does not exceed the next [five] ten taxable years.
1347
(b) A taxed pass-through entity taxpayer may not carry back the amount of the tax credit
1348
that exceeds the taxed pass-through entity taxpayer's tax liability for the taxable year.
1349
Section 16. Section 59-10-1102.2 is enacted to read:
- 40 - 03-04 08:09 4th Sub. (Green) H.B. 60
1350
59-10-1102.2 (Effective 05/07/25) (Applies beginning 01/01/25). Removal of tax
1351
credit from tax return and prohibition on claiming a tax credit -- Conditions for removal
1352
and prohibition on claiming a tax credit -- Commission publishing requirements.
1353
(1) As used in this section, "tax return" means a tax return filed in accordance with this
1354
chapter.
1355
(2) Beginning two taxable years after the requirements of Subsection (3) are met:
1356
(a) the commission shall remove a tax credit allowed under this part from each tax return
1357
on which the tax credit appears; and
1358
(b) a claimant, estate, or trust filing a tax return may not claim the tax credit.
1359
(3) The commission shall remove a tax credit allowed under this part from a tax return and
1360
a claimant, estate, or trust filing a tax return may not claim the tax credit as provided in
1361
Subsection (2) if:
1362
(a) the total amount of the tax credit claimed by all claimants, estates, or trusts filing tax
1363
returns is less than $10,000 per year for three consecutive taxable years beginning on
1364
or after January 1, 2025; and
1365
(b) fewer than 10 claimants, estates, and trusts per year for the three consecutive taxable
1366
years described in Subsection (3)(a), file a tax return claiming the tax credit.
1367
(4) On or before the November interim meeting of the year after the taxable year in which
1368
the requirements of Subsection (3) are met, the commission shall report to the Revenue
1369
and Taxation Interim Committee by electronic means that in accordance with this
1370
section:
1371
(a) the commission is required to remove a tax credit from each tax return on which the
1372
tax credit appears; and
1373
(b) a claimant, estate, or trust filing a tax return may not claim the tax credit.
1374
(5)(a) Within a 30-day period after the day on which the commission makes the report
1375
required by Subsection (4), the commission shall publish a list in accordance with
1376
Subsection (5)(b) stating each tax credit that the commission will remove from a
1377
return on which the tax credit appears.
1378
(b) The list shall:
1379
(i) be published on:
1380
(A) the commission's website; and
1381
(B) the public legal notice website in accordance with Section 45-1-101;
1382
(ii) include a statement that:
1383
(A) the commission is required to remove the tax credit from each return on which
- 41 - 4th Sub. (Green) H.B. 60 03-04 08:09
1384
the tax credit appears; and
1385
(B) the tax credit may not be claimed on a return;
1386
(iii) state the taxable year for which the removal described in Subsection (5)(a) takes
1387
effect; and
1388
(iv) remain available for viewing and searching until the commission publishes a new
1389
list in accordance with this Subsection (5).
1390
Section 17. Section 63I-2-259 is amended to read:
1391
63I-2-259 (Effective 05/07/25). Repeal dates: Title 59.
1392
(1) Subsection 59-7-159(3)(b)(iii), referencing Section 59-7-614.10, is repealed December
1393
31, 2026.
1394
[(1)] (2) Subsection 59-7-610(8), regarding claiming a tax credit in the same taxable year as
1395
the targeted business income tax credit, is repealed December 31, 2024.
1396
(3) Section 59-7-614.10 is repealed December 31, 2026.
1397
[(2)] (4) Subsection 59-7-614.10(5), regarding claiming a tax credit in the same taxable year
1398
as the targeted business income tax credit, is repealed December 31, 2024.
1399
[(3)] (5) Section 59-7-624, Targeted business income tax credit, is repealed December 31,
1400
2024.
1401
(6) Subsection 59-10-137(3)(b)(viii), referencing Section 59-10-1037, is repealed
1402
December 31, 2026.
1403
[(4)] (7) Subsection 59-10-210(2)(b)(vi), regarding Section 59-10-1112, is repealed
1404
December 31, 2024.
1405
[(5)] (8) Subsection 59-10-1007(8), regarding claiming a tax credit in the same taxable year
1406
as the targeted business income tax credit, is repealed December 31, 2024.
1407
(9) Section 59-10-1037 is repealed December 31, 2026.
1408
[(6)] (10) Subsection 59-10-1037(5), regarding claiming a tax credit in the same taxable
1409
year as the targeted business income tax credit, is repealed December 31, 2024.
1410
[(7)] (11) Section 59-10-1112, Targeted business income tax credit, is repealed December
1411
31, 2024.
1412
Section 18. Section 63I-2-263 is amended to read:
1413
63I-2-263 (Effective 05/07/25). Repeal dates: Titles 63A through 63O.
1414
(1) Title 63A, Chapter 2, Part 5, Educational Interpretation and Translation Services
1415
Procurement Advisory Council is repealed July 1, 2025.
1416
(2) Section 63A-17-806, Definitions -- Infant at Work Pilot Program -- Administration --
1417
Report, is repealed June 30, 2026.
- 42 - 03-04 08:09 4th Sub. (Green) H.B. 60
1418
(3) Section 63C-1-103, Appointment and terms of boards, committees, councils, and
1419
commissions transitioning on October 1, 2024, or December 31, 2024, is repealed July
1420
1, 2025.
1421
(4) Section 63C-1-104, Appointment and terms of boards transitioning on October 1, 2024,
1422
is repealed January 1, 2025.
1423
(5) Title 63C, Chapter 29, Domestic Violence Data Task Force, is repealed October 1, 2024.
1424
(6) Subsection 63G-6a-802(1)(e), regarding a procurement for a presidential debate, is
1425
repealed January 1, 2025.
1426
(7) Subsection 63G-6a-802(3)(b)(iii), regarding a procurement for a presidential debate, is
1427
repealed January 1, 2025.
1428
(8) Subsection 63H-7a-403(2)(b), regarding the charge to maintain the public safety
1429
communications network, is repealed July 1, 2033.
1430
(9) Subsection 63J-1-602.2(3), regarding funding the Enterprise Zone Act, is repealed
1431
December 31, 2026.
1432
[(9)] (10) Subsection 63J-1-602.2(47), regarding appropriations to the State Tax
1433
Commission for deferral reimbursements, is repealed July 1, 2027.
1434
[(10)] (11) Section 63M-7-221, Expungement working group, is repealed April 30, 2025.
1435
[(11)] (12) Section 63M-7-504, Crime Victim Reparations and Assistance Board --
1436
Members, is repealed December 31, 2024.
1437
[(12)] (13) Section 63M-7-505, Board and office within Commission on Criminal and
1438
Juvenile Justice, is repealed December 31, 2024.
1439
[(13)] (14) Title 63M, Chapter 7, Part 6, Utah Council on Victims of Crime, is repealed
1440
December 31, 2024.
1441
[(14)] (15) Subsection 63N-2-213(12)(a), regarding claiming a tax credit in the same taxable
1442
year as the targeted business income tax credit, is repealed December 31, 2024.
1443
(16) Title 63N, Chapter 2, Part 2, Enterprise Zone Act, is repealed December 31, 2026.
1444
[(15)] (17) Title 63N, Chapter 2, Part 3, Targeted Business Income Tax Credit in an
1445
Enterprise Zone, is repealed December 31, 2024.
1446
Section 19. Effective Date.
1447
(1) Except as provided in Subsection (2), this bill takes effect on May 7, 2025.
1448
(2) The actions affecting the following sections take effect for a taxable year beginning on
1449
or after January 1, 2026:
1450
(a) Section 19-12-203 (Effective 01/01/26);
1451
(b) Section 59-1-402 (Effective 01/01/26);
- 43 - 4th Sub. (Green) H.B. 60 03-04 08:09
1452
(c) Section 59-1-1801 (Effective 01/01/26);
1453
(d) Section 59-1-1802 (Effective 01/01/26);
1454
(e) Section 59-10-104.1 (Effective 01/01/26);
1455
(f) Section 59-10-114 (Effective 01/01/26);
1456
(g) Section 59-10-510 (Effective 01/01/26); and
1457
(h) Section 59-10-1042 (Effective 01/01/26).
1458
Section 20. Retrospective operation.
1459
The following sections have retrospective operation for a taxable year beginning on or
1460
after January 1, 2025:
1461
(1) Section 59-7-614;
1462
(2) Section 59-7-614.10;
1463
(3) Section 59-10-1037;
1464
(4) Section 59-10-1045; and
1465
(5) Section 59-10-1102.2.
- 44 -