Utah Code 35A-9-604. Application for program

Effective 7/1/2023

35A-9-604. Application for program.

(1)

The department shall provide to each qualifying individual:

Terms Used In Utah Code 35A-9-604

Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
Beneficiary: means the individual designated:

(a)	in a 529 savings account agreement between a person, an estate, or a trust and the plan; and

(b)

to benefit from the amount saved in a 529 savings account. See Utah Code 35A-9-601

Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. ^{Source: OCC}

Commission: means the State Tax Commission. See Utah Code 35A-9-601

Department: means the Department of Workforce Services created in Section 35A-1-103. See Utah Code 35A-1-102

Deposit: means the payment of money from a source other than a match. See Utah Code 35A-9-601

Federal earned income tax credit: means the federal earned income tax credit:

(a)	described in Section 32, Internal Revenue Code; and

(b)

that a qualifying individual claims and is eligible to claim on the federal income tax return for the taxable year. See Utah Code 35A-9-601

Match: means the monetary amount described in Subsection 35A-9-603(2). See Utah Code 35A-9-601

Plan: means the Utah Educational Savings Plan created in Section 53B-8a-103. See Utah Code 35A-9-601

Program: means the Education Savings Incentive Program created in Section 35A-9-603. See Utah Code 35A-9-601

Qualifying individual: means an individual who the department identifies as experiencing intergenerational poverty and who has not been disqualified from participating in the program for overclaiming a match in a previous year. See Utah Code 35A-9-601

(a)

notice of the program;

(b)	information about the benefits of participating in the program;

(c)

information explaining that participation in the program requires that the qualifying individual:

(i)	apply for the program in accordance with this section;

(ii)	be eligible for and claim a federal earned income tax credit for the taxable year before the year in which the qualifying individual applies for the program;

(iii)

own one or more eligible 529 savings accounts into which a deposit is made during the same year for which the qualifying individual applies for the program; and

(iv)	sign an information release;

(d)	information about how to claim a federal earned income tax credit;

(e)	information about how to open an eligible 529 savings account; and

(f)	information about how to apply for the program.

(2)

(a)

To participate in the program, a qualifying individual shall complete annually an online application that includes:

(i)	a means for a qualifying individual to sign the information release described in Subsection (2)(b);

(ii)	a statement that the qualifying individual claimed a federal earned income tax credit for the previous taxable year;

(iii)

the name of the account owner, the name of the beneficiary, and the account number of any of the qualifying individual’s eligible 529 savings accounts;

(iv)	the amount of deposit into one or more of the qualifying individual’s eligible 529 savings accounts during the calendar year in which the application is made;

(v)	the allocation of the match among the qualifying individual’s eligible 529 savings accounts; and

(vi)	any other information required by the department, the plan, or the commission to administer the program.

(b)

The department, the plan, and the commission shall develop an information release that directs and allows:

(i)

the department to report to the plan:

(A)	the name and identifying information of the qualifying individual;

(B)	contact information for the qualifying individual; and

(C)	the name of the account owner, the name of the beneficiary, and the account number of any eligible 529 savings account;

(ii)

the plan to report to the department:

(A)	the account number, name of the account owner, and the name of the beneficiary for each eligible 529 savings account into which a deposit was made during the calendar year; and

(B)	the amount of deposit made into each eligible 529 savings account for the calendar year;

(iii)

the department to disclose to the commission, if the plan lists the qualifying individual on the report described in Section 53B-8a-302, the name and identifying information of the qualifying individual; and

(iv)	the commission to disclose to the department, whether the qualifying individual claimed a federal earned income tax credit on the qualifying individual’s federal income tax return for a taxable year.

(3)

(a)	The department shall provide to the plan the information described in Subsection (2)(b)(i) for each qualifying individual that the department determines completes the application requirements described in Subsection (2).

(b)

The department shall provide the information described in Subsection (3)(a):

(i)	in a single report; and

(ii)	with information about which calendar year the department requests a report under Section 53B-8a-302.

(4)

(a)	The department may provide to the commission the information described in Subsection (2)(b)(iii) for each qualifying individual that the plan lists on the report described in Section 53B-8a-302.

(b)

The department shall provide the information described in Subsection (4)(a):

(i)	in a single report; and

(ii)	with information about which calendar year the department requires a disclosure under Subsection 59-1-403(4)(aa).

(5)	The department, the plan, and the commission shall provide for the security and maintenance of confidentiality of any information shared under an information release.

(6)

(a)

The department shall determine whether an applicant for the program:

(i)	is a qualifying individual; and

(ii)	meets the program requirements described in this section.

(b)	An applicant may not appeal the department’s determination that the applicant is not a qualifying individual.

(c)	An applicant may reapply if the department later identifies the applicant as a qualifying individual.

Enacted by Chapter 52, 2023 General Session

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