Fiscal Note
2nd Sub. H.B. 176 (Gray)
2025 General Session
County Classification Amendments
by Brooks, Walt
General, Income Tax, and Uniform School Funds JR4-4-101
Ongoing One-time Total
Net GF/ITF/USF (rev.-exp.) $(100,000) $0 $(100,000)
State Government UCA 36-12-13(2)(c)
Revenues FY 2025 FY 2026 FY 2027
Income Tax Fund $0 $(100,000) $(100,000)
Total Revenues $0 $(100,000) $(100,000)
Enactment of this legislation could increase forgone revenue to the Income Tax Fund from two tax
credits. The Rural Economic Development Tax Increment Financing (REDTIF) tax credit could result
in forgone revenue to the Income Tax Fund for up to 8 years following the claim of the tax credit.
Forgone revenue could be approximately $900,000 per project; the aggregate amount is unknown.
The High Cost Infrastructure Development tax credit could result in forgone revenue to the Income Tax
Fund for up to 20 years following the claim of the tax credit. Forgone revenue could be between $3
million and $25 million approximately per project; the aggregate amount is unknown.
Additionally, enactment of this legislation could decrease revenue to the Income Tax Fund by
$100,000 ongoing in FY 2026 for Mental Health Practitioner tax credits.
Expenditures FY 2025 FY 2026 FY 2027
Total Expenditures $0 $0 $0
Enactment of this legislation likely will not materially impact state expenditures.
FY 2025 FY 2026 FY 2027
Net All Funds $0 $(100,000) $(100,000)
Local Government UCA 36-12-13(2)(c)
Enactment of this legislation likely will not result in direct, measurable costs for local governments.
2nd Sub. H.B. 176 (Gray)
2025/02/13 09:47, Lead Analyst: Tim Bereece, Attorney: Oakey-Frost, R. Individuals & Businesses UCA 36-12-13(2)(c)
Enactment of this legislation could reduce the income tax liability of businesses and individuals
receiving the following three tax credits.
Collectively, businesses and individuals could reduce their tax liability by up to $900,000 over 8 years
per additional Rural Economic Development Tax Increment Financing tax credit project; the aggregate
impact is unknown.
Collectively, businesses and individuals could reduce their income tax liability by as much as $3 million
and up to $25 million per project over the course of 20 years per additional High Cost Infrastructure tax
credit project; the aggregate impact is unknown.
Enactment of this legislation could reduce the income tax liability for about 10 individuals claiming the
Mental Health Practitioner tax credit by $10,000 annually per individual for up to 10 years; the reduced
income tax liability beginning in FY 2026 is $100,000 ongoing in aggregate.
Regulatory Impact UCA 36-12-13(2)(d)
Enactment of this legislation likely will not change the regulatory burden for Utah residents or
businesses.
Performance Evaluation JR1-4-601
This bill does not create a new program or significantly expand an existing program.
Notes on Notes
Fiscal explanations estimate the direct costs or revenues of enacting a bill. The Legislature uses them to balance the budget. They do not
measure a bill's benefits or non-fiscal impacts like opportunity costs, wait times, or inconvenience. A fiscal explanation is not an appropriation. The
Legislature decides appropriations separately.
2nd Sub. H.B. 176 (Gray)
2025/02/13 09:47, Lead Analyst: Tim Bereece, Attorney: Oakey-Frost, R.