§ 59-10-1102.2 — Removal of tax credit from tax return and prohibition on claiming a tax credit -- Conditions for removal and prohibition on claiming a tax credit -- Commission publishing requirements.

Utah § 59-10-1102.2

• Jurisdiction: Utah
• Title 59: Revenue and Taxation
• Ch. 59-10: Individual Income Tax Act
• Part 59-10-11: Refundable Tax Credit Act

Text

(1) As used in this section, "tax return" means a tax return filed in accordance with this chapter.
(2) Beginning two taxable years after the requirements of Subsection (3) are met:
(2)(a) the commission shall remove a tax credit allowed under this part from each tax return on which the tax credit appears; and
(2)(b) a claimant, estate, or trust filing a tax return may not claim the tax credit.
(3) The commission shall remove a tax credit allowed under this part from a tax return and a claimant, estate, or trust filing a tax return may not claim the tax credit as provided in Subsection (2) if:
(3)(a) the total amount of the tax credit claimed by all claimants, estates, or trusts filing tax returns is less than $10,000 per year for three consecutive taxable years beginning on or after January 1, 2025; and
(3)(b) fewer than 10 claimants, estates, and trusts per year for the three consecutive taxable years described in Subsection (3)(a), file a tax return claiming the tax credit.
(4) On or before the November interim meeting of the year after the taxable year in which the requirements of Subsection (3) are met, the commission shall report to the Revenue and Taxation Interim Committee by electronic means that in accordance with this section:
(4)(a) the commission is required to remove a tax credit from each tax return on which the tax credit appears; and
(4)(b) a claimant, estate, or trust filing a tax return may not claim the tax credit.
(5) (5)(a) Within a 30-day period after the day on which the commission makes the report required by Subsection (4), the commission shall publish a list in accordance with Subsection (5)(b) stating each tax credit that the commission will remove from a return on which the tax credit appears.
(5)(b) The list shall:
(5)(b)(i) be published on:
(5)(b)(i)(A) the commission's website; and
(5)(b)(i)(B) the public legal notice website in accordance with Section 45-1-101;
(5)(b)(ii) include a statement that:
(5)(b)(ii)(A) the commission is required to remove the tax credit from each return on which the tax credit appears; and
(5)(b)(ii)(B) the tax credit may not be claimed on a return;
(5)(b)(iii) state the taxable year for which the removal described in Subsection (5)(a) takes effect; and
(5)(b)(iv) remain available for viewing and searching until the commission publishes a new list in accordance with this Subsection (5).

Legislative History

Enacted by Chapter 182, 2025 General Session