Enrolled Copy H.B. 60
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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 for a participating payee with an address in the state with the State Tax
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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; H.B. 60 Enrolled Copy
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▸ provides the circumstances for the automatic removal of refundable individual income tax
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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)] (1)(a) [an] An employer, except as otherwise provided by contract or a collective
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bargaining agreement, may offer a medical care savings account program to the
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employer's 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
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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
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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
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of the Legislature, the Office of the Legislative Fiscal Analyst, or the Governor's
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Office of Planning and Budget, provide to the committee or office the total amount of [
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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.
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(k) Notwithstanding Subsection (2), the commission may share information with federal,
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state, or local agencies as provided in Subsection 59-14-606(3).
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(l)(i) Notwithstanding Subsection (2), the commission shall provide the Office of
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Recovery Services within the Department of Health and Human Services any
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relevant information obtained from a return filed under Chapter 10, Individual
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Income Tax Act, regarding a taxpayer who has become obligated to the Office of
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Recovery Services.
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(ii) The information described in Subsection (4)(l)(i) may be provided by the Office
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of Recovery Services to any other state's child support collection agency involved
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in enforcing that support obligation.
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(m)(i) Notwithstanding Subsection (2), upon request from the state court
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administrator, the commission shall provide to the state court administrator, the
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name, address, telephone number, county of residence, and social security number
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on resident returns filed under Chapter 10, Individual Income Tax Act.
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(ii) The state court administrator may use the information described in Subsection
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(4)(m)(i) only as a source list for the master jury list described in Section
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78B-1-106.
405
(n)(i) As used in this Subsection (4)(n):
406
(A) "GOEO" means the Governor's Office of Economic Opportunity created in
407
Section 63N-1a-301.
408
(B) "Income tax information" means information gained by the commission that is
409
required to be attached to or included in a return filed with the commission
410
under Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10,
411
Individual Income Tax Act.
412
(C) "Other tax information" means information gained by the commission that is
413
required to be attached to or included in a return filed with the commission
414
except for a return filed under Chapter 7, Corporate Franchise and Income
415
Taxes, or Chapter 10, Individual Income Tax Act.
416
(D) "Tax information" means income tax information or other tax information.
417
(ii)(A) Notwithstanding Subsection (2) and except as provided in Subsection
418
(4)(n)(ii)(B) or (C), the commission shall at the request of GOEO provide to
419
GOEO all income tax information.
420
(B) For purposes of a request for income tax information made under Subsection
421
(4)(n)(ii)(A), GOEO may not request and the commission may not provide to
422
GOEO a person's address, name, social security number, or taxpayer
423
identification number.
424
(C) In providing income tax information to GOEO, the commission shall in all
425
instances protect the privacy of a person as required by Subsection (4)(n)(ii)(B).
426
(iii)(A) Notwithstanding Subsection (2) and except as provided in Subsection
427
(4)(n)(iii)(B), the commission shall at the request of GOEO provide to GOEO
428
other tax information.
429
(B) Before providing other tax information to GOEO, the commission shall redact
430
or remove any name, address, social security number, or taxpayer identification
431
number.
432
(iv) GOEO may provide tax information received from the commission in accordance
433
with this Subsection (4)(n) only:
434
(A) as a fiscal estimate, fiscal note information, or statistical information; and
435
(B) if the tax information is classified to prevent the identification of a particular
- 13 - H.B. 60 Enrolled Copy
436
return.
437
(v)(A) A person may not request tax information from GOEO under Title 63G,
438
Chapter 2, Government Records Access and Management Act, or this section,
439
if GOEO received the tax information from the commission in accordance with
440
this Subsection (4)(n).
441
(B) GOEO may not provide to a person that requests tax information in
442
accordance with Subsection (4)(n)(v)(A) any tax information other than the tax
443
information GOEO provides in accordance with Subsection (4)(n)(iv).
444
(o) Notwithstanding Subsection (2), the commission may provide to the governing board
445
of the agreement or a taxing official of another state, the District of Columbia, the
446
United States, or a territory of the United States:
447
(i) the following relating to an agreement sales and use tax:
448
(A) information contained in a return filed with the commission;
449
(B) information contained in a report filed with the commission;
450
(C) a schedule related to Subsection (4)(o)(i)(A) or (B); or
451
(D) a document filed with the commission; or
452
(ii) a report of an audit or investigation made with respect to an agreement sales and
453
use tax.
454
(p) Notwithstanding Subsection (2), the commission may provide information
455
concerning a taxpayer's state income tax return or state income tax withholding
456
information to the Driver License Division if the Driver License Division:
457
(i) requests the information; and
458
(ii) provides the commission with a signed release form from the taxpayer allowing
459
the Driver License Division access to the information.
460
(q) Notwithstanding Subsection (2), the commission shall provide to the Utah
461
Communications Authority, or a division of the Utah Communications Authority, the
462
information requested by the authority under Sections 63H-7a-302, 63H-7a-402, and
463
63H-7a-502.
464
(r) Notwithstanding Subsection (2), the commission shall provide to the Utah
465
Educational Savings Plan information related to a resident or nonresident individual's
466
contribution to a Utah Educational Savings Plan account as designated on the
467
resident or nonresident's individual income tax return as provided under Section
468
59-10-1313.
469
(s) Notwithstanding Subsection (2), for the purpose of verifying eligibility under
- 14 - Enrolled Copy H.B. 60
470
Sections 26B-3-106 and 26B-3-903, the commission shall provide an eligibility
471
worker with the Department of Health and Human Services or its designee with the
472
adjusted gross income of an individual if:
473
(i) an eligibility worker with the Department of Health and Human Services or its
474
designee requests the information from the commission; and
475
(ii) the eligibility worker has complied with the identity verification and consent
476
provisions of Sections 26B-3-106 and 26B-3-903.
477
(t) Notwithstanding Subsection (2), the commission may provide to a county, as
478
determined by the commission, information declared on an individual income tax
479
return in accordance with Section 59-10-103.1 that relates to eligibility to claim a
480
residential exemption authorized under Section 59-2-103.
481
(u) Notwithstanding Subsection (2), the commission shall provide a report regarding any
482
access line provider that is over 90 days delinquent in payment to the commission of
483
amounts the access line provider owes under Title 69, Chapter 2, Part 4, Prepaid
484
Wireless Telecommunications Service Charges, to the board of the Utah
485
Communications Authority created in Section 63H-7a-201.
486
(v) Notwithstanding Subsection (2), the commission shall provide the Department of
487
Environmental Quality a report on the amount of tax paid by a radioactive waste
488
facility for the previous calendar year under Section 59-24-103.5.
489
(w) Notwithstanding Subsection (2), the commission may, upon request, provide to the
490
Department of Workforce Services any information received under Chapter 10, Part
491
4, Withholding of Tax, that is relevant to the duties of the Department of Workforce
492
Services.
493
(x) Notwithstanding Subsection (2), the commission may provide the Public Service
494
Commission or the Division of Public Utilities information related to a seller that
495
collects and remits to the commission a charge described in Subsection 69-2-405(2),
496
including the seller's identity and the number of charges described in Subsection
497
69-2-405(2) that the seller collects.
498
(y)(i) Notwithstanding Subsection (2), the commission shall provide to each
499
qualifying jurisdiction the collection data necessary to verify the revenue collected
500
by the commission for a distributed tax, fee, or charge collected within the
501
qualifying jurisdiction.
502
(ii) In addition to the information provided under Subsection (4)(y)(i), the
503
commission shall provide a qualifying jurisdiction with copies of returns and other
- 15 - H.B. 60 Enrolled Copy
504
information relating to a distributed tax, fee, or charge collected within the
505
qualifying jurisdiction.
506
(iii)(A) To obtain the information described in Subsection (4)(y)(ii), the chief
507
executive officer or the chief executive officer's designee of the qualifying
508
jurisdiction shall submit a written request to the commission that states the
509
specific information sought and how the qualifying jurisdiction intends to use
510
the information.
511
(B) The information described in Subsection (4)(y)(ii) is available only in official
512
matters of the qualifying jurisdiction.
513
(iv) Information that a qualifying jurisdiction receives in response to a request under
514
this subsection is:
515
(A) classified as a private record under Title 63G, Chapter 2, Government Records
516
Access and Management Act; and
517
(B) subject to the confidentiality requirements of this section.
518
(z) Notwithstanding Subsection (2), the commission shall provide the Alcoholic
519
Beverage Services Commission, upon request, with taxpayer status information
520
related to state tax obligations necessary to comply with the requirements described
521
in Section 32B-1-203.
522
(aa) Notwithstanding Subsection (2), the commission shall inform the Department of
523
Workforce Services, as soon as practicable, whether an individual claimed and is
524
entitled to claim a federal earned income tax credit for the year requested by the
525
Department of Workforce Services if:
526
(i) the Department of Workforce Services requests this information; and
527
(ii) the commission has received the information release described in Section
528
35A-9-604.
529
(bb)(i) As used in this Subsection (4)(bb), "unclaimed property administrator" means
530
the administrator or the administrator's agent, as those terms are defined in Section
531
67-4a-102.
532
(ii)(A) Notwithstanding Subsection (2), upon request from the unclaimed property
533
administrator and to the extent allowed under federal law, the commission shall
534
provide the unclaimed property administrator the name, address, telephone
535
number, county of residence, and social security number or federal employer
536
identification number on any return filed under Chapter 7, Corporate Franchise
537
and Income Taxes, or Chapter 10, Individual Income Tax Act.
- 16 - Enrolled Copy H.B. 60
538
(B) The unclaimed property administrator may use the information described in
539
Subsection (4)(bb)(ii)(A) only for the purpose of returning unclaimed property
540
to the property's owner in accordance with Title 67, Chapter 4a, Revised
541
Uniform Unclaimed Property Act.
542
(iii) The unclaimed property administrator is subject to the confidentiality provisions
543
of this section with respect to any information the unclaimed property
544
administrator receives under this Subsection (4)(bb).
545
(cc) Notwithstanding Subsection (2), the commission may, upon request, disclose a
546
taxpayer's state individual income tax information to a program manager of the Utah
547
Fits All Scholarship Program under Section 53F-6-402 if:
548
(i) the taxpayer consents in writing to the disclosure;
549
(ii) the taxpayer's written consent includes the taxpayer's name, social security
550
number, and any other information the commission requests that is necessary to
551
verify the identity of the taxpayer; and
552
(iii) the program manager provides the taxpayer's written consent to the commission.
553
(dd) Notwithstanding Subsection (2), the commission may provide to the Division of
554
Finance within the Department of Government Operations any information necessary
555
to facilitate a payment from the commission to a taxpayer, including:
556
(i) the name of the taxpayer entitled to the payment or any other person legally
557
authorized to receive the payment;
558
(ii) the taxpayer identification number of the taxpayer entitled to the payment;
559
(iii) the payment identification number and amount of the payment;
560
(iv) the tax year to which the payment applies and date on which the payment is due;
561
(v) a mailing address to which the payment may be directed; and
562
(vi) information regarding an account at a depository institution to which the
563
payment may be directed, including the name of the depository institution, the
564
type of account, the account number, and the routing number for the account.
565
(ee) Notwithstanding Subsection (2), the commission shall provide the total amount of [
566
revenues] revenue collected by the commission under Subsection 59-5-202(5):
567
(i) at the request of a committee of the Legislature, the Office of the Legislative
568
Fiscal Analyst, or the Governor's Office of Planning and Budget, to the committee
569
or office for the time period specified by the committee or office; and
570
(ii) to the Division of Finance for purposes of the Division of Finance administering
571
Subsection 59-5-202(5).
- 17 - H.B. 60 Enrolled Copy
572
(ff) Notwithstanding Subsection (2), the commission may provide the Department of
573
Agriculture and Food with information from a return filed in accordance with
574
Chapter 31, Cannabinoid Licensing and Tax Act.
575
(gg) Notwithstanding Subsection (2), the commission shall provide the Department of
576
Workforce Services with the information described in Section 35A-3-105.
577
(5)(a) Each report and return shall be preserved for at least three years.
578
(b) After the three-year period provided in Subsection (5)(a) the commission may
579
destroy a report or return.
580
(6)(a) Any individual who violates this section is guilty of a class A misdemeanor.
581
(b) If the individual described in Subsection (6)(a) is an officer or employee of the state,
582
the individual shall be dismissed from office and be disqualified from holding public
583
office in this state for a period of five years thereafter.
584
(c) Notwithstanding Subsection (6)(a) or (b), GOEO, when requesting information in
585
accordance with Subsection (4)(n)(iii), or an individual who requests information in
586
accordance with Subsection (4)(n)(v):
587
(i) is not guilty of a class A misdemeanor; and
588
(ii) is not subject to:
589
(A) dismissal from office in accordance with Subsection (6)(b); or
590
(B) disqualification from holding public office in accordance with Subsection
591
(6)(b).
592
(d) Notwithstanding Subsection (6)(a) or (b), for a disclosure of information to the
593
Office of the Legislative Auditor General in accordance with Title 36, Chapter 12,
594
Legislative Organization, an individual described in Subsection (2):
595
(i) is not guilty of a class A misdemeanor; and
596
(ii) is not subject to:
597
(A) dismissal from office in accordance with Subsection (6)(b); or
598
(B) disqualification from holding public office in accordance with Subsection
599
(6)(b).
600
(7) Except as provided in Section 59-1-404, this part does not apply to the property tax.
601
Section 6. Section 59-1-1801 is enacted to read:
602
Part 18. Reportable Transactions by Persons Other than Taxpayers
603
59-1-1801 (Effective 01/01/26). Definitions.
604
As used in this part:
605
(1) "Participating payee" means the same as that term is defined in 26 U.S.C. Sec. 6050W.
- 18 - Enrolled Copy H.B. 60
606
(2) "Payment settlement entity" means the same as that term is defined in 26 U.S.C. Sec.
607
6050W.
608
Section 7. Section 59-1-1802 is enacted to read:
609
59-1-1802 (Effective 01/01/26). Reporting by payment settlement entity.
610
A payment settlement entity that is required to file a return in accordance with 26 U.S.C.
611
Sec. 6050W shall file a return containing the same information with the commission for each
612
participating payee with an address in Utah:
613
(1) electronically;
614
(2) in a format approved by the commission; and
615
(3) within 30 days after the day on which the payment settlement entity is required to file a
616
return with the Internal Revenue Service.
617
Section 8. Section 59-7-614 is amended to read:
618
59-7-614 (Effective 05/07/25) (Applies beginning 01/01/25). Clean energy systems
619
tax credits -- Definitions -- Certification -- Rulemaking authority.
620
(1) As used in this section:
621
(a)(i) "Active solar system" means a system of equipment that is capable of:
622
(A) collecting and converting incident solar radiation into thermal, mechanical, or
623
electrical energy; and
624
(B) transferring a form of energy described in Subsection (1)(a)(i)(A) by a
625
separate apparatus to storage or to the point of use.
626
(ii) "Active solar system" includes water heating, space heating or cooling, and
627
electrical or mechanical energy generation.
628
(b) "Biomass system" means a system of apparatus and equipment for use in:
629
(i) converting material into biomass energy, as defined in Section 59-12-102; and
630
(ii) transporting the biomass energy by separate apparatus to the point of use or
631
storage.
632
(c) "Clean energy source" means the same as that term is defined in Section 54-17-601.
633
(d) "Commercial energy system" means a system that is:
634
(i)(A) an active solar system;
635
(B) a biomass system;
636
(C) a direct use geothermal system;
637
(D) a geothermal electricity system;
638
(E) a geothermal heat pump system;
639
(F) a hydroenergy system;
- 19 - H.B. 60 Enrolled Copy
640
(G) a passive solar system; or
641
(H) a wind system;
642
(ii) located in the state; and
643
(iii) used:
644
(A) to supply energy to a commercial unit; or
645
(B) as a commercial enterprise.
646
(e) "Commercial enterprise" means an entity, the purpose of which is to produce:
647
(i) electrical, mechanical, or thermal energy for sale from a commercial energy
648
system; or
649
(ii) hydrogen for sale from a hydrogen production system.
650
(f)(i) "Commercial unit" means a building or structure, other than a residence, that an
651
entity uses to transact business.
652
(ii) Notwithstanding Subsection (1)(f)(i):
653
(A) with respect to an active solar system used for agricultural water pumping or a
654
wind system, each individual energy generating device is considered to be a
655
commercial unit; or
656
(B) if an energy system is the building or structure that an entity uses to transact
657
business, a commercial unit is the complete energy system itself.
658
(g) "Direct use geothermal system" means a system of apparatus and equipment that
659
enables the direct use of geothermal energy to meet energy needs, including heating a
660
building, an industrial process, and aquaculture.
661
(h) "Geothermal electricity" means energy that is:
662
(i) contained in heat that continuously flows outward from the earth; and
663
(ii) used as a sole source of energy to produce electricity.
664
(i) "Geothermal energy" means energy generated by heat that is contained in the earth.
665
(j) "Geothermal heat pump system" means a system of apparatus and equipment that:
666
(i) enables the use of thermal properties contained in the earth at temperatures well
667
below 100 degrees Fahrenheit; and
668
(ii) helps meet heating and cooling needs of a structure.
669
(k) "Hydroenergy system" means a system of apparatus and equipment that is capable of:
670
(i) intercepting and converting kinetic water energy into electrical or mechanical
671
energy; and
672
(ii) transferring this form of energy by separate apparatus to the point of use or
673
storage.
- 20 - Enrolled Copy H.B. 60
674
(l) "Hydrogen production system" means a system of apparatus and equipment, located
675
in this state, that uses:
676
(i) electricity from a clean energy source to create hydrogen gas from water,
677
regardless of whether the clean energy source is at a separate facility or the same
678
facility as the system of apparatus and equipment; or
679
(ii) uses renewable natural gas to produce hydrogen gas.
680
(m) "Office" means the Office of Energy Development created in Section 79-6-401.
681
(n)(i) "Passive solar system" means a direct thermal system that utilizes the structure
682
of a building and the structure's operable components to provide for collection,
683
storage, and distribution of heating or cooling during the appropriate times of the
684
year by utilizing the climate resources available at the site.
685
(ii) "Passive solar system" includes those portions and components of a building that
686
are expressly designed and required for the collection, storage, and distribution of
687
solar energy.
688
(o) "Photovoltaic system" means an active solar system that generates electricity from
689
sunlight.
690
(p)(i) "Principal recovery portion" means the portion of a lease payment that
691
constitutes the cost a person incurs in acquiring a commercial energy system.
692
(ii) "Principal recovery portion" does not include:
693
(A) an interest charge; or
694
(B) a maintenance expense.
695
(q) "Residential energy system" means the following used to supply energy to or for a
696
residential unit:
697
(i) an active solar system;
698
(ii) a biomass system;
699
(iii) a direct use geothermal system;
700
(iv) a geothermal heat pump system;
701
(v) a hydroenergy system;
702
(vi) a passive solar system; or
703
(vii) a wind system.
704
(r)(i) "Residential unit" means a house, condominium, apartment, or similar dwelling
705
unit that:
706
(A) is located in the state; and
707
(B) serves as a dwelling for a person, group of persons, or a family.
- 21 - H.B. 60 Enrolled Copy
708
(ii) "Residential unit" does not include property subject to a fee under:
709
(A) Section 59-2-405;
710
(B) Section 59-2-405.1;
711
(C) Section 59-2-405.2;
712
(D) Section 59-2-405.3; or
713
(E) Section 72-10-110.5.
714
(s) "Wind system" means a system of apparatus and equipment that is capable of:
715
(i) intercepting and converting wind energy into mechanical or electrical energy; and
716
(ii) transferring these forms of energy by a separate apparatus to the point of use,
717
sale, or storage.
718
(2) A taxpayer may claim an energy system tax credit as provided in this section against a
719
tax due under this chapter for a taxable year.
720
(3)(a) Subject to the other provisions of this Subsection (3), a taxpayer may claim a
721
nonrefundable tax credit under this Subsection (3) with respect to a residential unit
722
the taxpayer owns or uses if:
723
(i) the taxpayer:
724
(A) purchases and completes a residential energy system to supply all or part of
725
the energy required for the residential unit; or
726
(B) participates in the financing of a residential energy system to supply all or part
727
of the energy required for the residential unit; and
728
(ii) the taxpayer obtains a written certification from the office in accordance with
729
Subsection (8).
730
(b)(i) Subject to Subsections (3)(b)(ii) through (iv) and, as applicable, Subsection
731
(3)(c) or (d), the tax credit is equal to 25% of the reasonable costs of each
732
residential energy system installed with respect to each residential unit the
733
taxpayer owns or uses.
734
(ii) A tax credit under this Subsection (3) may include installation costs.
735
(iii) A taxpayer may claim a tax credit under this Subsection (3) for the taxable year
736
in which the residential energy system is completed and placed in service.
737
(iv) If the amount of a tax credit under this Subsection (3) exceeds a taxpayer's tax
738
liability under this chapter for a taxable year, the taxpayer may carry forward the
739
amount of the tax credit exceeding the liability for a period that does not exceed
740
the next four taxable years.
741
(c) The total amount of tax credit a taxpayer may claim under this Subsection (3) for a
- 22 - Enrolled Copy H.B. 60
742
residential energy system, other than a photovoltaic system, may not exceed $2,000
743
per residential unit.
744
(d) The total amount of tax credit a taxpayer may claim under this Subsection (3) for a
745
photovoltaic system may not exceed:
746
(i) for a system installed on or after January 1, 2018, but on or before December 31,
747
2020, $1,600;
748
(ii) for a system installed on or after January 1, 2021, but on or before December 31,
749
2021, $1,200;
750
(iii) for a system installed on or after January 1, 2022, but on or before December 31,
751
2022, $800;
752
(iv) for a system installed on or after January 1, 2023, but on or before December 31,
753
2023, $400; and
754
(v) for a system installed on or after January 1, 2024, $0.
755
(e) If a taxpayer sells a residential unit to another person before the taxpayer claims the
756
tax credit under this Subsection (3):
757
(i) the taxpayer may assign the tax credit to the other person; and
758
(ii)(A) if the other person files a return under this chapter, the other person may
759
claim the tax credit under this section as if the other person had met the
760
requirements of this section to claim the tax credit; or
761
(B) if the other person files a return under Chapter 10, Individual Income Tax Act,
762
the other person may claim the tax credit under Section 59-10-1014 as if the
763
other person had met the requirements of Section 59-10-1014 to claim the tax
764
credit.
765
(4)(a) Subject to the other provisions of this Subsection (4), a taxpayer may claim a
766
refundable tax credit under this Subsection (4) with respect to a commercial energy
767
system if:
768
(i) the commercial energy system does not use:
769
(A) wind, geothermal electricity, solar, or biomass equipment capable of
770
producing a total of 660 or more kilowatts of electricity; or
771
(B) solar equipment capable of producing 2,000 or more kilowatts of electricity;
772
(ii) the taxpayer purchases or participates in the financing of the commercial energy
773
system;
774
(iii)(A) the commercial energy system supplies all or part of the energy required
775
by commercial units owned or used by the taxpayer; or
- 23 - H.B. 60 Enrolled Copy
776
(B) the taxpayer sells all or part of the energy produced by the commercial energy
777
system as a commercial enterprise;
778
(iv) the taxpayer has not claimed and will not claim a tax credit under Subsection (7)
779
for hydrogen production using electricity for which the taxpayer claims a tax
780
credit under this Subsection (4); and
781
(v) the taxpayer obtains a written certification from the office in accordance with
782
Subsection (8).
783
(b)(i) Subject to Subsections (4)(b)(ii) through (iv), the tax credit is equal to 10% of
784
the reasonable costs of the commercial energy system.
785
(ii) A tax credit under this Subsection (4) may include installation costs.
786
(iii) A taxpayer is eligible to claim a tax credit under this Subsection (4) for the
787
taxable year in which the commercial energy system is completed and placed in
788
service.
789
(iv) The total amount of tax credit a taxpayer may claim under this Subsection (4)
790
may not exceed $50,000 per commercial unit.
791
(c)(i) Subject to Subsections (4)(c)(ii) and (iii), a taxpayer that is a lessee of a
792
commercial energy system installed on a commercial unit may claim a tax credit
793
under this Subsection (4) if the taxpayer confirms that the lessor irrevocably elects
794
not to claim the tax credit.
795
(ii) A taxpayer described in Subsection (4)(c)(i) may claim as a tax credit under this
796
Subsection (4) only the principal recovery portion of the lease payments.
797
(iii) A taxpayer described in Subsection (4)(c)(i) may claim a tax credit under this
798
Subsection (4) for a period that does not exceed seven taxable years after the day
799
on which the lease begins, as stated in the lease agreement.
800
(5)(a) Subject to the other provisions of this Subsection (5), a taxpayer may claim a
801
refundable tax credit under this Subsection (5) with respect to a commercial energy
802
system if:
803
(i) the commercial energy system uses wind, geothermal electricity, or biomass
804
equipment capable of producing a total of 660 or more kilowatts of electricity;
805
(ii)(A) the commercial energy system supplies all or part of the energy required by
806
commercial units owned or used by the taxpayer; or
807
(B) the taxpayer sells all or part of the energy produced by the commercial energy
808
system as a commercial enterprise;
809
(iii) the taxpayer has not claimed and will not claim a tax credit under Subsection (7)
- 24 - Enrolled Copy H.B. 60
810
for hydrogen production using electricity for which the taxpayer claims a tax
811
credit under this Subsection (5); and
812
(iv) the taxpayer obtains a written certification from the office in accordance with
813
Subsection (8).
814
(b)(i) Subject to Subsection (5)(b)(ii), a tax credit under this Subsection (5) is equal
815
to the product of:
816
(A) 0.35 cents; and
817
(B) the kilowatt hours of electricity produced and used or sold during the taxable
818
year.
819
(ii) A taxpayer is eligible to claim a tax credit under this Subsection (5) for
820
production occurring during a period of 48 months beginning with the month in
821
which the commercial energy system is placed in commercial service.
822
(c) A taxpayer that is a lessee of a commercial energy system installed on a commercial
823
unit may claim a tax credit under this Subsection (5) if the taxpayer confirms that the
824
lessor irrevocably elects not to claim the tax credit.
825
(6)(a) Subject to the other provisions of this Subsection (6), a taxpayer may claim a
826
refundable tax credit as provided in this Subsection (6) if:
827
(i) the taxpayer owns a commercial energy system that uses solar equipment capable
828
of producing a total of 660 or more kilowatts of electricity;
829
(ii)(A) the commercial energy system supplies all or part of the energy required by
830
commercial units owned or used by the taxpayer; or
831
(B) the taxpayer sells all or part of the energy produced by the commercial energy
832
system as a commercial enterprise;
833
(iii) the taxpayer does not claim a tax credit under Subsection (4) and has not claimed
834
and will not claim a tax credit under Subsection (7) for hydrogen production using
835
electricity for which a taxpayer claims a tax credit under this Subsection (6); and
836
(iv) the taxpayer obtains a written certification from the office in accordance with
837
Subsection (8).
838
(b)(i) Subject to Subsection (6)(b)(ii), a tax credit under this Subsection (6) is equal
839
to the product of:
840
(A) 0.35 cents; and
841
(B) the kilowatt hours of electricity produced and used or sold during the taxable
842
year.
843
(ii) A taxpayer is eligible to claim a tax credit under this Subsection (6) for
- 25 - H.B. 60 Enrolled Copy
844
production occurring during a period of 48 months beginning with the month in
845
which the commercial energy system is placed in commercial service.
846
(c) A taxpayer that is a lessee of a commercial energy system installed on a commercial
847
unit may claim a tax credit under this Subsection (6) if the taxpayer confirms that the
848
lessor irrevocably elects not to claim the tax credit.
849
(7)(a) A taxpayer may claim a refundable tax credit as provided in this Subsection (7) if:
850
(i) the taxpayer owns a hydrogen production system;
851
(ii) the hydrogen production system is completed and placed in service on or after
852
January 1, 2022;
853
(iii) the taxpayer sells as a commercial enterprise, or supplies for the taxpayer's own
854
use in commercial units, the hydrogen produced from the hydrogen production
855
system;
856
(iv) the taxpayer has not claimed and will not claim a tax credit under Subsection (4),
857
(5), or (6) or Section 59-7-626 for electricity or hydrogen used to meet the
858
requirements of this Subsection (7); and
859
(v) the taxpayer obtains a written certification from the office in accordance with
860
Subsection (8).
861
(b)(i) Subject to Subsections (7)(b)(ii) and (iii), a tax credit under this Subsection (7)
862
is equal to the product of:
863
(A) $0.12; and
864
(B) the number of kilograms of hydrogen produced during the taxable year.
865
(ii) A taxpayer may not receive a tax credit under this Subsection (7) for more than
866
5,600 metric tons of hydrogen per taxable year.
867
(iii) A taxpayer is eligible to claim a tax credit under this Subsection (7) for
868
production occurring during a period of 48 months beginning with the month in
869
which the hydrogen production system is placed in commercial service.
870
(8)(a) Before a taxpayer may claim a tax credit under this section, the taxpayer shall
871
obtain a written certification from the office.
872
(b) The office shall issue a taxpayer a written certification if the office determines that:
873
(i) the taxpayer meets the requirements of this section to receive a tax credit; and
874
(ii) the residential energy system, the commercial energy system, or the hydrogen
875
production system with respect to which the taxpayer seeks to claim a tax credit:
876
(A) has been completely installed;
877
(B) is a viable system for saving or producing energy from clean resources; and
- 26 - Enrolled Copy H.B. 60
878
(C) is safe, reliable, efficient, and technically feasible to ensure that the residential
879
energy system, the commercial energy system, or the hydrogen production
880
system uses the state's clean and nonrenewable energy resources in an
881
appropriate and economic manner.
882
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
883
office may make rules:
884
(i) for determining whether a residential energy system, a commercial energy system,
885
or a hydrogen production system meets the requirements of Subsection (8)(b)(ii);
886
and
887
(ii) for purposes of a tax credit under Subsection (3) or (4), establishing the
888
reasonable costs of a residential energy system or a commercial energy system, as
889
an amount per unit of energy production.
890
(d) A taxpayer that obtains a written certification from the office shall retain the
891
certification for the same time period a person is required to keep books and records
892
under Section 59-1-1406.
893
(e) The office shall submit to the commission an electronic list that includes:
894
(i) the name and identifying information of each taxpayer to which the office issues a
895
written certification; and
896
(ii) for each taxpayer:
897
(A) the amount of the tax credit listed on the written certification; and
898
(B) the date the clean energy system was installed.
899
(9) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
900
commission may make rules to address the certification of a tax credit under this section.
901
(10) A tax credit under this section is in addition to any tax credits provided under the laws
902
or rules and regulations of the United States.
903
(11) A taxpayer may not claim or carry forward a tax credit described in this section in a
904
taxable year during which the taxpayer claims or carries forward a tax credit under
905
Section 59-7-614.7.
906
Section 9. Section 59-7-614.10 is amended to read:
907
59-7-614.10 (Effective 05/07/25) (Applies beginning 01/01/25). Nonrefundable
908
enterprise zone tax credit.
909
(1) As used in this section:
910
(a) "Business entity" means a corporation that meets the definition of "business entity"
911
as that term is defined in Section 63N-2-202.
- 27 - H.B. 60 Enrolled Copy
912
(b) "Office" means the Governor's Office of Economic Opportunity created in Section
913
63N-1a-301.
914
(2) Subject to the provisions of this section, for a taxable year beginning before January 1,
915
2025, a business entity may claim a nonrefundable enterprise zone tax credit as
916
described in Section 63N-2-213.
917
(3) The enterprise zone tax credit under this section is the amount listed as the tax credit
918
amount on the tax credit certificate that the office issues to the business entity for the
919
taxable year.
920
(4) A business entity may carry forward a tax credit under this section for a period that does
921
not exceed the next three taxable years, if the amount of the tax credit exceeds the
922
business entity's tax liability under this chapter for that taxable year.
923
(5)(a) In accordance with Section 59-7-159, the Revenue and Taxation Interim
924
Committee shall study the tax credit allowed by this section and make
925
recommendations concerning whether the tax credit should be continued, modified,
926
or repealed.
927
(b)(i) Except as provided in Subsection (5)(b)(ii), for purposes of the study required
928
by this Subsection (5), the office shall provide by electronic means the following
929
information for each calendar year to the Office of the Legislative Fiscal Analyst:
930
(A) the amount of tax credits provided in each development zone;
931
(B) the number of new full-time employee positions reported to obtain tax credits
932
in each development zone;
933
(C) the amount of tax credits awarded for rehabilitating a building in each
934
development zone;
935
(D) the amount of tax credits awarded for investing in a plant, equipment, or other
936
depreciable property in each development zone;
937
(E) the information related to the tax credit contained in the office's latest report
938
under Section 63N-1a-301; and
939
(F) any other information that the Office of the Legislative Fiscal Analyst requests.
940
(ii)(A) In providing the information described in Subsection (5)(b)(i), the office
941
shall redact information that identifies a recipient of a tax credit under this
942
section.
943
(B) If, notwithstanding the redactions made under Subsection (5)(b)(ii)(A),
944
reporting the information described in Subsection (5)(b)(i) might disclose the
945
identity of a recipient of a tax credit, the office may file a request with the
- 28 - Enrolled Copy H.B. 60
946
Revenue and Taxation Interim Committee to provide the information described
947
in Subsection (5)(b)(i) in the aggregate for all development zones that receive
948
the tax credit under this section.
949
(c) As part of the study required by this Subsection (5), the Office of the Legislative
950
Fiscal Analyst shall report to the Revenue and Taxation Interim Committee a
951
summary and analysis of the information provided to the Office of the Legislative
952
Fiscal Analyst by the office under Subsection (5)(b).
953
(d) The Revenue and Taxation Interim Committee shall ensure that the
954
recommendations described in Subsection (5)(a) include an evaluation of:
955
(i) the cost of the tax credit to the state;
956
(ii) the purpose and effectiveness of the tax credit; and
957
(iii) the extent to which the state benefits from the tax credit.
958
Section 10. Section 59-10-104.1 is amended to read:
959
59-10-104.1 (Effective 01/01/26). Exemption from taxation.
960
(1) For purposes of this section:
961
(a) "Modified adjusted gross income" means the amount calculated by:
962
(i) adding the individual's adjusted gross income on the individual's federal individual
963
income tax return for the taxable year and any additions required by Section
964
59-10-114 for the taxable year; and
965
(ii) subtracting from the amount calculated in accordance with Subsection (1)(a)(i),
966
any subtractions required by Section 59-10-114 for the taxable year.
967
(b) "Personal exemptions" means the total exemption amount an individual is allowed to
968
claim for the taxable year under Section 151, Internal Revenue Code, for:
969
(i) the individual;
970
(ii) the individual's spouse; and
971
(iii) the individual's dependents.
972
[(b)] (c) "Standard deduction":
973
(i) means the standard deduction an individual is allowed to claim for the taxable
974
year under Section 63, Internal Revenue Code; and
975
(ii) notwithstanding Subsection [(1)(b)(i)] (1)(c)(i), does not include an additional
976
amount allowed under Section 63(f), Internal Revenue Code, for an individual or
977
an individual's spouse who is:
978
(A) blind; or
979
(B) 65 years of age or older.
- 29 - H.B. 60 Enrolled Copy
980
(2) [For taxable years beginning on or after January 1, 2002, an] An individual is exempt
981
from a tax imposed by Section 59-10-104 or 59-10-116 if the individual's [adjusted
982
gross income on the individual's federal individual income tax return for the taxable year]
983
modified adjusted gross income is less than or equal to the sum of the individual's:
984
(a) personal exemptions for that taxable year; and
985
(b) standard deduction for that taxable year.
986
Section 11. Section 59-10-114 is amended to read:
987
59-10-114 (Effective 01/01/26). Additions to and subtractions from adjusted
988
gross income of an individual.
989
(1) There shall be added to adjusted gross income of a resident or nonresident individual:
990
(a) a lump sum distribution that the taxpayer does not include in adjusted gross income
991
on the taxpayer's federal individual income tax return for the taxable year;
992
(b) the amount of a child's income calculated under Subsection (4) that:
993
(i) a parent elects to report on the parent's federal individual income tax return for the
994
taxable year; and
995
(ii) the parent does not include in adjusted gross income on the parent's federal
996
individual income tax return for the taxable year;
997
(c)(i) a withdrawal from a medical care savings account and any penalty imposed for
998
the taxable year if:
999
(A) the resident or nonresident individual does not deduct the amounts on the
1000
resident or nonresident individual's federal individual income tax return under
1001
Section 220, Internal Revenue Code;
1002
(B) the withdrawal is subject to Subsections 31A-32a-105(1) and (2); and
1003
(C) the withdrawal is subtracted on, or used as the basis for claiming a tax credit
1004
on, a return the resident or nonresident individual files under this chapter;
1005
(ii) a disbursement required to be added to adjusted gross income in accordance with
1006
Subsection 31A-32a-105(3); or
1007
(iii) an amount required to be added to adjusted gross income in accordance with
1008
Subsection 31A-32a-105(5)(c);
1009
(d) the amount withdrawn under Title 53B, Chapter 8a, Utah Educational Savings Plan,
1010
from the account of a resident or nonresident individual who is an account owner as
1011
defined in Section 53B-8a-102, for the taxable year for which the amount is
1012
withdrawn, if that amount withdrawn from the account of the resident or nonresident
1013
individual who is the account owner:
- 30 - Enrolled Copy H.B. 60
1014
(i) is not expended for:
1015
(A) higher education costs as defined in Section 53B-8a-102.5; or
1016
(B) a payment or distribution that qualifies as an exception to the additional tax
1017
for distributions not used for educational expenses provided in Sections 529(c)
1018
and 530(d), Internal Revenue Code; and
1019
(ii) is:
1020
(A) subtracted by the resident or nonresident individual:
1021
(I) who is the account owner; and
1022
(II) on the resident or nonresident individual's return filed under this chapter
1023
for a taxable year beginning on or before December 31, 2007; or
1024
(B) used as the basis for the resident or nonresident individual who is the account
1025
owner to claim a tax credit under Section 59-10-1017;
1026
(e) except as provided in Subsection (5), for bonds, notes, and other evidences of
1027
indebtedness acquired on or after January 1, 2003, the interest from bonds, notes, and
1028
other evidences of indebtedness:
1029
(i) issued by one or more of the following entities:
1030
(A) a state other than this state;
1031
(B) the District of Columbia;
1032
(C) a political subdivision of a state other than this state; or
1033
(D) an agency or instrumentality of an entity described in Subsections (1)(e)(i)(A)
1034
through (C); and
1035
(ii) to the extent the interest is not included in adjusted gross income on the taxpayer's
1036
federal income tax return for the taxable year;
1037
(f) subject to Subsection (2)(c), any distribution received by a resident beneficiary of a
1038
resident trust of income that was taxed at the trust level for federal tax purposes, but
1039
was subtracted from state taxable income of the trust pursuant to Subsection
1040
59-10-202(2)(b);
1041
(g) any distribution received by a resident beneficiary of a nonresident trust of
1042
undistributed distributable net income realized by the trust on or after January 1,
1043
2004, if that undistributed distributable net income was taxed at the trust level for
1044
federal tax purposes, but was not taxed at the trust level by any state, with
1045
undistributed distributable net income considered to be distributed from the most
1046
recently accumulated undistributed distributable net income;
1047
(h) any adoption expense:
- 31 - H.B. 60 Enrolled Copy
1048
(i) for which a resident or nonresident individual receives reimbursement from
1049
another person; and
1050
(ii) to the extent to which the resident or nonresident individual subtracts that
1051
adoption expense:
1052
(A) on a return filed under this chapter for a taxable year beginning on or before
1053
December 31, 2007; or
1054
(B) from federal taxable income on a federal individual income tax return;
1055
(i) the amount of tax paid on income attributed to the individual in accordance with
1056
Subsection 59-10-1403.2(2) that is not included in adjusted gross income; and
1057
(j) the amount of tax paid:
1058
(i) on income attributed to the individual and taxable in this state, that is not included
1059
in adjusted gross income;
1060
(ii) to another state; and
1061
(iii) that the commission determines is substantially similar to the tax imposed under
1062
Subsection 59-10-1403.2(2).
1063
(2) There shall be subtracted from adjusted gross income of a resident or nonresident
1064
individual:
1065
(a) the difference between:
1066
(i) the interest or a dividend on an obligation or security of the United States or an
1067
authority, commission, instrumentality, or possession of the United States, to the
1068
extent that interest or dividend is:
1069
(A) included in adjusted gross income for federal income tax purposes for the
1070
taxable year; and
1071
(B) exempt from state income taxes under the laws of the United States; and
1072
(ii) any interest on indebtedness incurred or continued to purchase or carry the
1073
obligation or security described in Subsection (2)(a)(i);
1074
(b) if the conditions of Subsection (3)(a) are met, the amount of income derived by a Ute
1075
tribal member:
1076
(i) during a time period that the Ute tribal member resides on homesteaded land
1077
diminished from the Uintah and Ouray Reservation; and
1078
(ii) from a source within the Uintah and Ouray Reservation;
1079
(c) an amount received by a resident or nonresident individual or distribution received
1080
by a resident or nonresident beneficiary of a resident trust:
1081
(i) if that amount or distribution constitutes a refund of taxes imposed by:
- 32 - Enrolled Copy H.B. 60
1082
(A) a state; or
1083
(B) the District of Columbia; and
1084
(ii) to the extent that amount or distribution is included in adjusted gross income for
1085
that taxable year on the federal individual income tax return of the resident or
1086
nonresident individual or resident or nonresident beneficiary of a resident trust;
1087
(d) the amount of a railroad retirement benefit:
1088
(i) paid:
1089
(A) in accordance with The Railroad Retirement Act of 1974, 45 U.S.C. Sec. 231
1090
et seq.;
1091
(B) to a resident or nonresident individual; and
1092
(C) for the taxable year; and
1093
(ii) to the extent that railroad retirement benefit is included in adjusted gross income
1094
on that resident or nonresident individual's federal individual income tax return for
1095
that taxable year;
1096
(e) an amount:
1097
(i) received by an enrolled member of an American Indian tribe; and
1098
(ii) to the extent that the state is not authorized or permitted to impose a tax under this
1099
part on that amount in accordance with:
1100
(A) federal law;
1101
(B) a treaty; or
1102
(C) a final decision issued by a court of competent jurisdiction;
1103
(f) an amount received:
1104
(i) for the interest on a bond, note, or other obligation issued by an entity for which
1105
state statute provides an exemption of interest on its bonds from state individual
1106
income tax;
1107
(ii) by a resident or nonresident individual;
1108
(iii) for the taxable year; and
1109
(iv) to the extent the amount is included in adjusted gross income on the taxpayer's
1110
federal income tax return for the taxable year;
1111
(g) the amount of all income, including income apportioned to another state, of a
1112
nonmilitary spouse of an active duty military member if:
1113
(i) both the nonmilitary spouse and the active duty military member are nonresident
1114
individuals;
1115
(ii) the active duty military member is stationed in Utah;
- 33 - H.B. 60 Enrolled Copy
1116
(iii) the nonmilitary spouse is subject to the residency provisions of 50 U.S.C. Sec.
1117
4001(a)(2); and
1118
(iv) the income is included in adjusted gross income for federal income tax purposes
1119
for the taxable year;
1120
[(h) for a taxable year beginning on or after January 1, 2019, but beginning on or before
1121
December 31, 2019, only:]
1122
[(i) the amount of any FDIC premium paid or incurred by the taxpayer that is
1123
disallowed as a deduction for federal income tax purposes under Section 162(r),
1124
Internal Revenue Code, on the taxpayer's 2018 federal income tax return; plus]
1125
[(ii) the amount of any FDIC premium paid or incurred by the taxpayer that is
1126
disallowed as a deduction for federal income tax purposes under Section 162(r),
1127
Internal Revenue Code, for the taxable year;]
1128
[(i)] (h) [for a taxable year beginning on or after January 1, 2020, ]the amount of any
1129
FDIC premium paid or incurred by the taxpayer that is disallowed as a deduction for
1130
federal income tax purposes under Section 162(r), Internal Revenue Code, for the
1131
taxable year;[ and]
1132
[(j)] (i) an amount of a distribution from a qualified retirement plan under Section 401(a),
1133
Internal Revenue Code, if:
1134
(i) the amount of the distribution is included in adjusted gross income on the resident
1135
or nonresident individual's federal individual income tax return for the taxable
1136
year; and
1137
(ii) for the taxable year when the amount of the distribution was contributed to the
1138
qualified retirement plan, the amount of the distribution:
1139
(A) was not included in adjusted gross income on the resident or nonresident
1140
individual's federal individual income tax return for the taxable year; and
1141
(B) was taxed by another state of the United States, the District of Columbia, or a
1142
possession of the United States[.] ; and
1143
(j) the amount of any repayment in the current taxable year of social security income
1144
received in a previous taxable year if:
1145
(i) the individual claimed a credit for the repayment on the individual's federal
1146
individual income tax return for the current taxable year; and
1147
(ii) the individual did not claim a tax credit under Section 59-10-1042 for the taxable
1148
year in which the individual received the social security income.
1149
(3)(a) A subtraction for an amount described in Subsection (2)(b) is allowed only if:
- 34 - Enrolled Copy H.B. 60
1150
(i) the taxpayer is a Ute tribal member; and
1151
(ii) the governor and the Ute tribe execute and maintain an agreement meeting the
1152
requirements of this Subsection (3).
1153
(b) The agreement described in Subsection (3)(a):
1154
(i) may not:
1155
(A) authorize the state to impose a tax in addition to a tax imposed under this
1156
chapter;
1157
(B) provide a subtraction under this section greater than or different from the
1158
subtraction described in Subsection (2)(b); or
1159
(C) affect the power of the state to establish rates of taxation; and
1160
(ii) shall:
1161
(A) provide for the implementation of the subtraction described in Subsection
1162
(2)(b);
1163
(B) be in writing;
1164
(C) be signed by:
1165
(I) the governor; and
1166
(II) the chair of the Business Committee of the Ute tribe;
1167
(D) be conditioned on obtaining any approval required by federal law; and
1168
(E) state the effective date of the agreement.
1169
(c)(i) The governor shall report to the commission by no later than February 1 of each
1170
year regarding whether or not an agreement meeting the requirements of this
1171
Subsection (3) is in effect.
1172
(ii) If an agreement meeting the requirements of this Subsection (3) is terminated, the
1173
subtraction permitted under Subsection (2)(b) is not allowed for taxable years
1174
beginning on or after the January 1 following the termination of the agreement.
1175
(d) For purposes of Subsection (2)(b) and in accordance with Title 63G, Chapter 3, Utah
1176
Administrative Rulemaking Act, the commission may make rules:
1177
(i) for determining whether income is derived from a source within the Uintah and
1178
Ouray Reservation; and
1179
(ii) that are substantially similar to how adjusted gross income derived from Utah
1180
sources is determined under Section 59-10-117.
1181
(4)(a) For purposes of this Subsection (4), "Form 8814" means:
1182
(i) the federal individual income tax Form 8814, Parents' Election To Report Child's
1183
Interest and Dividends; or
- 35 - H.B. 60 Enrolled Copy
1184
(ii)(A) a form designated by the commission in accordance with Subsection
1185
(4)(a)(ii)(B) as being substantially similar to 2000 Form 8814 if for purposes of
1186
federal individual income taxes the information contained on 2000 Form 8814
1187
is reported on a form other than Form 8814; and
1188
(B) for purposes of Subsection (4)(a)(ii)(A) and in accordance with Title 63G,
1189
Chapter 3, Utah Administrative Rulemaking Act, the commission may make
1190
rules designating a form as being substantially similar to 2000 Form 8814 if for
1191
purposes of federal individual income taxes the information contained on 2000
1192
Form 8814 is reported on a form other than Form 8814.
1193
(b) The amount of a child's income added to adjusted gross income under Subsection
1194
(1)(b) is equal to the difference between:
1195
(i) the lesser of:
1196
(A) the base amount specified on Form 8814; and
1197
(B) the sum of the following reported on Form 8814:
1198
(I) the child's taxable interest;
1199
(II) the child's ordinary dividends; and
1200
(III) the child's capital gain distributions; and
1201
(ii) the amount not taxed that is specified on Form 8814.
1202
(5) Notwithstanding Subsection (1)(e), interest from bonds, notes, and other evidences of
1203
indebtedness issued by an entity described in Subsections (1)(e)(i)(A) through (D) may
1204
not be added to adjusted gross income of a resident or nonresident individual if, as
1205
annually determined by the commission:
1206
(a) for an entity described in Subsection (1)(e)(i)(A) or (B), the entity and all of the
1207
political subdivisions, agencies, or instrumentalities of the entity do not impose a tax
1208
based on income on any part of the bonds, notes, and other evidences of indebtedness
1209
of this state; or
1210
(b) for an entity described in Subsection (1)(e)(i)(C) or (D), the following do not impose
1211
a tax based on income on any part of the bonds, notes, and other evidences of
1212
indebtedness of this state:
1213
(i) the entity; or
1214
(ii)(A) the state in which the entity is located; or
1215
(B) the District of Columbia, if the entity is located within the District of
1216
Columbia.
1217
Section 12. Section 59-10-510 is amended to read:
- 36 - Enrolled Copy H.B. 60
1218
59-10-510 (Effective 01/01/26). Return of electing small business corporation.
1219
An electing small business corporation, as defined in Section [1371(a)(2)] 1362, Internal
1220
Revenue Code, shall make a return for each taxable year, stating specifically:
1221
(1) the items of the electing small business corporation's gross income and the deductions
1222
allowable by Subtitle A, Internal Revenue Code;
1223
(2) the names and addresses of all persons owning stock in the electing small business
1224
corporation at any time during the taxable year;
1225
(3) the number of shares of stock owned by each shareholder at all times during the taxable
1226
year to each shareholder;
1227
(4) the date of each distribution to a shareholder; and
1228
(5) other information as the commission may prescribe by:
1229
(a) form; or
1230
(b) administrative rule made in accordance with Title 63G, Chapter 3, Utah
1231
Administrative Rulemaking Act.
1232
Section 13. Section 59-10-1037 is amended to read:
1233
59-10-1037 (Effective 05/07/25) (Applies beginning 01/01/25). Nonrefundable
1234
enterprise zone tax credit.
1235
(1) As used in this section:
1236
(a) "Business entity" means a claimant, estate, or trust that meets the definition of
1237
"business entity" as that term is defined in Section 63N-2-202.
1238
(b) "Office" means the Governor's Office of Economic Opportunity created in Section
1239
63N-1a-301.
1240
(2) Subject to the provisions of this section, for a taxable year beginning before January 1,
1241
2025, a business entity may claim a nonrefundable enterprise zone tax credit as
1242
described in Section 63N-2-213.
1243
(3) The enterprise zone tax credit under this section is the amount listed as the tax credit
1244
amount on the tax credit certificate that the office issues to the business entity for the
1245
taxable year.
1246
(4) A business entity may carry forward a tax credit under this section for a period that does
1247
not exceed the next three taxable years, if the amount of the tax credit exceeds the
1248
business entity's tax liability under this chapter for that taxable year.
1249
(5)(a) In accordance with Section 59-10-137, the Revenue and Taxation Interim
1250
Committee shall study the tax credit allowed by this section and make
1251
recommendations concerning whether the tax credit should be continued, modified,
- 37 - H.B. 60 Enrolled Copy
1252
or repealed.
1253
(b)(i) Except as provided in Subsection (5)(b)(ii), for purposes of the study required
1254
by this Subsection (5), the office shall provide by electronic means the following
1255
information, if available to the office, for each calendar year to the Office of the
1256
Legislative Fiscal Analyst:
1257
(A) the amount of tax credits provided in each development zone;
1258
(B) the number of new full-time employee positions reported to obtain tax credits
1259
in each development zone;
1260
(C) the amount of tax credits awarded for rehabilitating a building in each
1261
development zone;
1262
(D) the amount of tax credits awarded for investing in a plant, equipment, or other
1263
depreciable property in each development zone;
1264
(E) the information related to the tax credit contained in the office's latest report
1265
under Section 63N-1a-306; and
1266
(F) other information that the Office of the Legislative Fiscal Analyst requests.
1267
(ii)(A) In providing the information described in Subsection (5)(b)(i), the office
1268
shall redact information that identifies a recipient of a tax credit under this
1269
section.
1270
(B) If, notwithstanding the redactions made under Subsection (5)(b)(ii)(A),
1271
reporting the information described in Subsection (5)(b)(i) might disclose the
1272
identity of a recipient of a tax credit, the office may file a request with the
1273
Revenue and Taxation Interim Committee to provide the information described
1274
in Subsection (5)(b)(i) in the aggregate for all development zones that receive
1275
the tax credit under this section.
1276
(c) As part of the study required by this Subsection (5), the Office of the Legislative
1277
Fiscal Analyst shall report to the Revenue and Taxation Interim Committee a
1278
summary and analysis of the information provided to the Office of the Legislative
1279
Fiscal Analyst by the office under Subsection (5)(b).
1280
(d) The Revenue and Taxation Interim Committee shall ensure that the
1281
recommendations described in Subsection (5)(a) include an evaluation of:
1282
(i) the cost of the tax credit to the state;
1283
(ii) the purpose and effectiveness of the tax credit; and
1284
(iii) the extent to which the state benefits from the tax credit.
1285
Section 14. Section 59-10-1042 is amended to read:
- 38 - Enrolled Copy H.B. 60
1286
59-10-1042 (Effective 01/01/26). Nonrefundable tax credit for social security
1287
benefits.
1288
(1) As used in this section:
1289
(a) "Head of household filing status" means the same as that term is defined in Section
1290
59-10-1018.
1291
(b) "Joint filing status" means the same as that term is defined in Section 59-10-1018.
1292
(c) "Married filing separately status" means a married individual who:
1293
(i) does not file a single federal individual income tax return jointly with that married
1294
individual's spouse for the taxable year; and
1295
(ii) files a single federal individual income tax return for the taxable year.
1296
(d) "Modified adjusted gross income" means the sum of the following for a claimant or,
1297
if the claimant's return under this chapter is allowed a joint filing status, the claimant
1298
and the claimant's spouse:
1299
(i) adjusted gross income for the taxable year for which a tax credit is claimed under
1300
this section;
1301
(ii) any interest income that is not included in adjusted gross income for the taxable
1302
year described in Subsection (1)(d)(i); and
1303
(iii) any addition to adjusted gross income required by Section 59-10-114 for the
1304
taxable year described in Subsection (1)(d)(i).
1305
(e) "Single filing status" means a single individual who files a single federal individual
1306
income tax return for the taxable year.
1307
(f) "Social security benefit" means an amount received by a claimant as a monthly
1308
benefit in accordance with the Social Security Act, 42 U.S.C. Sec. 401 et seq.
1309
(2) Except as provided in Section 59-10-1002.2 and Subsections (3) and (4), each claimant
1310
on a return that receives a social security benefit may claim a nonrefundable tax credit
1311
against taxes otherwise due under this part equal to the product of:
1312
(a) the percentage listed in Subsection 59-10-104(2); and
1313
(b) the claimant's social security benefit that is included in adjusted gross income on the
1314
claimant's federal income tax return for the taxable year.
1315
(3) A claimant may not:
1316
(a) carry forward or carry back the amount of a tax credit under this section that exceeds
1317
the claimant's tax liability for the taxable year; or
1318
(b) claim a tax credit under this section for a taxable year if a tax credit under Section
1319
59-10-1019 is claimed on the claimant's return for the same taxable year.
- 39 - H.B. 60 Enrolled Copy
1320
(4) The tax credit allowed by Subsection (2) claimed on a return filed under this part shall
1321
be reduced by $.025 for each dollar by which modified adjusted gross income for
1322
purposes of the return exceeds:
1323
(a) for a [federal individual income tax ]return filed under this chapter that is allowed a
1324
married filing separately status, $37,500;
1325
(b) for a [federal individual income tax ]return filed under this chapter that is allowed a
1326
single filing status, $45,000;
1327
(c) for a [federal individual income tax ]return filed under this chapter that is allowed a
1328
head of household filing status, $75,000; or
1329
(d) for a return filed under this chapter that is allowed a joint filing status, $75,000.
1330
(5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1331
commission may make rules governing the calculation and method for claiming the tax
1332
credit described in this section.
1333
Section 15. Section 59-10-1045 is amended to read:
1334
59-10-1045 (Effective 01/01/26) (Applies beginning 01/01/25). Nonrefundable tax
1335
credit for taxes paid by pass-through entity.
1336
(1) As used in this section, "taxed pass-through entity taxpayer" means a resident or
1337
nonresident individual who:
1338
(a) has income attributed to the individual by a pass-through entity;
1339
(b) receives the income described in Subsection (1)(a) after the pass-through entity pays
1340
the tax described in Subsection 59-10-1403.2(2); and
1341
(c) adds the amount of tax paid on the income described in Subsection (1)(a) to adjusted
1342
gross income in accordance with Subsection 59-10-114(1)(i).
1343
(2)(a) A taxed pass-through entity taxpayer may claim a nonrefundable tax credit for the
1344
taxes imposed under Subsection 59-10-1403.2(2).
1345
(b) The tax credit is equal to the amount of the tax paid under Subsection
1346
59-10-1403.2(2) by the pass-through entity on the income attributed to the taxed
1347
pass-through entity taxpayer.
1348
(3)(a) A taxed pass-through entity taxpayer may carry forward the amount of the tax
1349
credit that exceeds the taxed pass-through entity taxpayer's tax liability for a period
1350
that does not exceed the next [five] ten taxable years.
1351
(b) A taxed pass-through entity taxpayer may not carry back the amount of the tax credit
1352
that exceeds the taxed pass-through entity taxpayer's tax liability for the taxable year.
1353
Section 16. Section 59-10-1102.2 is enacted to read:
- 40 - Enrolled Copy H.B. 60
1354
59-10-1102.2 (Effective 05/07/25) (Applies beginning 01/01/25). Removal of tax
1355
credit from tax return and prohibition on claiming a tax credit -- Conditions for removal
1356
and prohibition on claiming a tax credit -- Commission publishing requirements.
1357
(1) As used in this section, "tax return" means a tax return filed in accordance with this
1358
chapter.
1359
(2) Beginning two taxable years after the requirements of Subsection (3) are met:
1360
(a) the commission shall remove a tax credit allowed under this part from each tax return
1361
on which the tax credit appears; and
1362
(b) a claimant, estate, or trust filing a tax return may not claim the tax credit.
1363
(3) The commission shall remove a tax credit allowed under this part from a tax return and
1364
a claimant, estate, or trust filing a tax return may not claim the tax credit as provided in
1365
Subsection (2) if:
1366
(a) the total amount of the tax credit claimed by all claimants, estates, or trusts filing tax
1367
returns is less than $10,000 per year for three consecutive taxable years beginning on
1368
or after January 1, 2025; and
1369
(b) fewer than 10 claimants, estates, and trusts per year for the three consecutive taxable
1370
years described in Subsection (3)(a), file a tax return claiming the tax credit.
1371
(4) On or before the November interim meeting of the year after the taxable year in which
1372
the requirements of Subsection (3) are met, the commission shall report to the Revenue
1373
and Taxation Interim Committee by electronic means that in accordance with this
1374
section:
1375
(a) the commission is required to remove a tax credit from each tax return on which the
1376
tax credit appears; and
1377
(b) a claimant, estate, or trust filing a tax return may not claim the tax credit.
1378
(5)(a) Within a 30-day period after the day on which the commission makes the report
1379
required by Subsection (4), the commission shall publish a list in accordance with
1380
Subsection (5)(b) stating each tax credit that the commission will remove from a
1381
return on which the tax credit appears.
1382
(b) The list shall:
1383
(i) be published on:
1384
(A) the commission's website; and
1385
(B) the public legal notice website in accordance with Section 45-1-101;
1386
(ii) include a statement that:
1387
(A) the commission is required to remove the tax credit from each return on which
- 41 - H.B. 60 Enrolled Copy
1388
the tax credit appears; and
1389
(B) the tax credit may not be claimed on a return;
1390
(iii) state the taxable year for which the removal described in Subsection (5)(a) takes
1391
effect; and
1392
(iv) remain available for viewing and searching until the commission publishes a new
1393
list in accordance with this Subsection (5).
1394
Section 17. Section 63I-2-259 is amended to read:
1395
63I-2-259 (Effective 05/07/25). Repeal dates: Title 59.
1396
(1) Subsection 59-7-159(3)(b)(iii), referencing Section 59-7-614.10, is repealed December
1397
31, 2026.
1398
[(1)] (2) Subsection 59-7-610(8), regarding claiming a tax credit in the same taxable year as
1399
the targeted business income tax credit, is repealed December 31, 2024.
1400
(3) Section 59-7-614.10, Nonrefundable enterprise zone tax credit, is repealed December
1401
31, 2026.
1402
[(2)] (4) Subsection 59-7-614.10(5), regarding claiming a tax credit in the same taxable year
1403
as the targeted business income tax credit, is repealed December 31, 2024.
1404
[(3)] (5) Section 59-7-624, Targeted business income tax credit, is repealed December 31,
1405
2024.
1406
(6) Subsection 59-10-137(3)(b)(viii), referencing Section 59-10-1037, is repealed
1407
December 31, 2026.
1408
[(4)] (7) Subsection 59-10-210(2)(b)(vi), regarding Section 59-10-1112, is repealed
1409
December 31, 2024.
1410
[(5)] (8) Subsection 59-10-1007(8), regarding claiming a tax credit in the same taxable year
1411
as the targeted business income tax credit, is repealed December 31, 2024.
1412
(9) Section 59-10-1037, Nonrefundable enterprise zone tax credit, is repealed December 31,
1413
2026.
1414
[(6)] (10) Subsection 59-10-1037(5), regarding claiming a tax credit in the same taxable
1415
year as the targeted business income tax credit, is repealed December 31, 2024.
1416
[(7)] (11) Section 59-10-1112, Targeted business income tax credit, is repealed December
1417
31, 2024.
1418
Section 18. Section 63I-2-263 is amended to read:
1419
63I-2-263 (Effective 05/07/25). Repeal dates: Titles 63A through 63O.
1420
(1) Title 63A, Chapter 2, Part 5, Educational Interpretation and Translation Services
1421
Procurement Advisory Council is repealed July 1, 2025.
- 42 - Enrolled Copy H.B. 60
1422
(2) Section 63A-17-806, Definitions -- Infant at Work Pilot Program -- Administration --
1423
Report, is repealed June 30, 2026.
1424
(3) Section 63C-1-103, Appointment and terms of boards, committees, councils, and
1425
commissions transitioning on October 1, 2024, or December 31, 2024, is repealed July
1426
1, 2025.
1427
(4) Section 63C-1-104, Appointment and terms of boards transitioning on October 1, 2024,
1428
is repealed January 1, 2025.
1429
(5) Title 63C, Chapter 29, Domestic Violence Data Task Force, is repealed October 1, 2024.
1430
(6) Subsection 63G-6a-802(1)(e), regarding a procurement for a presidential debate, is
1431
repealed January 1, 2025.
1432
(7) Subsection 63G-6a-802(3)(b)(iii), regarding a procurement for a presidential debate, is
1433
repealed January 1, 2025.
1434
(8) Subsection 63H-7a-403(2)(b), regarding the charge to maintain the public safety
1435
communications network, is repealed July 1, 2033.
1436
(9) Subsection 63J-1-602.2(3), regarding funding the Enterprise Zone Act, is repealed
1437
December 31, 2026.
1438
[(9)] (10) Subsection 63J-1-602.2(47), regarding appropriations to the State Tax
1439
Commission for deferral reimbursements, is repealed July 1, 2027.
1440
[(10)] (11) Section 63M-7-221, Expungement working group, is repealed April 30, 2025.
1441
[(11)] (12) Section 63M-7-504, Crime Victim Reparations and Assistance Board --
1442
Members, is repealed December 31, 2024.
1443
[(12)] (13) Section 63M-7-505, Board and office within Commission on Criminal and
1444
Juvenile Justice, is repealed December 31, 2024.
1445
[(13)] (14) Title 63M, Chapter 7, Part 6, Utah Council on Victims of Crime, is repealed
1446
December 31, 2024.
1447
[(14)] (15) Subsection 63N-2-213(12)(a), regarding claiming a tax credit in the same taxable
1448
year as the targeted business income tax credit, is repealed December 31, 2024.
1449
(16) Title 63N, Chapter 2, Part 2, Enterprise Zone Act, is repealed December 31, 2026.
1450
[(15)] (17) Title 63N, Chapter 2, Part 3, Targeted Business Income Tax Credit in an
1451
Enterprise Zone, is repealed December 31, 2024.
1452
Section 19. Effective Date.
1453
(1) Except as provided in Subsection (2), this bill takes effect on May 7, 2025.
1454
(2) The actions affecting the following sections take effect for a taxable year beginning on
1455
or after January 1, 2026:
- 43 - H.B. 60 Enrolled Copy
1456
(a) Section 19-12-203 (Effective 01/01/26);
1457
(b) Section 59-1-402 (Effective 01/01/26);
1458
(c) Section 59-1-1801 (Effective 01/01/26);
1459
(d) Section 59-1-1802 (Effective 01/01/26);
1460
(e) Section 59-10-104.1 (Effective 01/01/26);
1461
(f) Section 59-10-114 (Effective 01/01/26);
1462
(g) Section 59-10-510 (Effective 01/01/26); and
1463
(h) Section 59-10-1042 (Effective 01/01/26).
1464
Section 20. Retrospective operation.
1465
The following sections have retrospective operation for a taxable year beginning on or
1466
after January 1, 2025:
1467
(1) Section 59-7-614;
1468
(2) Section 59-7-614.10;
1469
(3) Section 59-10-1037;
1470
(4) Section 59-10-1045; and
1471
(5) Section 59-10-1102.2.
- 44 -