| (1) |
For taxable years beginning on or after January 1, 2008, an estate or trust may claim a nonrefundable tax credit against taxes otherwise due under 2, equal to the product of:
Terms Used In Utah Code 59-10-1020- estate: means a nonresident estate or a resident estate that has state taxable income. See Utah Code 59-10-1002
- nonresident estate: means a trust or estate which is not a resident estate or trust. See Utah Code 59-10-103
- Qualified nongrantor charitable lead trust: means a trust:
| (ii) | that has a trust term measured by:| (A) | a fixed term of years; or |
| (B) | the life of a person living on the day on which the trust is created; |
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| (iii) | under which:| (A) | a portion of the value of the trust assets is distributed during the trust term:| (I) | to an organization described in Section 170(c), Internal Revenue Code; and |
| (II) | as a guaranteed annuity interest or a unitrust interest; and |
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| (B) | assets remaining in the trust at the termination of the trust term are distributed to a beneficiary:| (I) | designated in the trust; and |
| (II) | that is not an organization described in Section 170(c), Internal Revenue Code; |
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| (iv) | for which the trust is allowed a deduction under Section 642(c), Internal Revenue Code; and |
| (v) | under which the grantor of the trust is not treated as the owner of any portion of the trust for federal income tax purposes. See Utah Code 59-10-103- State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
- tax credit: means a tax credit that a claimant, estate, or trust may:
| (a) | claim:| (i) | as provided by statute; and |
| (ii) | in an amount that does not exceed the claimant's, estate's, or trust's tax liability under this chapter for a taxable year; and |
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| (b) | carry forward or carry back:| (i) | if allowed by statute; and |
| (ii) | unless otherwise provided in statute, to the extent that the amount of the tax credit exceeds the claimant's, estate's, or trust's tax liability under this chapter for a taxable year. See Utah Code 59-10-1002- trust: means a nonresident trust or a resident trust that has state taxable income. See Utah Code 59-10-1002
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| (a) |
the sum of:
| (i) |
the amount that a resident or nonresident estate or trust deducts under Section 163, Internal Revenue Code, for interest paid or accrued, as allowed on the resident or nonresident estate’s or trust’s federal income tax return for estates and trusts for the taxable year; |
| (ii) |
the amount that a resident or nonresident estate or trust deducts under Section 164, Internal Revenue Code, for taxes paid or accrued other than for any amount paid or accrued for state or local income taxes for the taxable year, as allowed on the resident or nonresident estate’s or trust’s federal income tax return for estates and trusts for the taxable year; |
| (iii) |
the amount that a resident or nonresident estate or trust other than a qualified nongrantor charitable lead trust deducts under Section 642(c), Internal Revenue Code, as a charitable contribution deduction, as allowed on the resident or nonresident estate’s or trust’s federal income tax return for estates and trusts for the taxable year; |
| (iv) |
subject to Subsection (3), the amount that a resident or nonresident estate or trust deducts as an attorney, accountant, or return preparer fee, as allowed on the resident or nonresident estate’s or trust’s federal income tax return for estates and trusts for the taxable year; and |
| (v) |
subject to Subsection (3), the amount that a resident or nonresident estate or trust deducts as an other deduction or miscellaneous itemized deduction, as allowed on the resident or nonresident estate’s or trust’s federal income tax return for estates and trusts for the taxable year; and |
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| (2) |
An estate or trust may not carry forward or carry back a tax credit under this section. |
| (3) |
The tax credit allowed by Subsection (1) shall be reduced by $.013 for each dollar by which an estate’s or trust’s taxable income exceeds $12,000. |
| (4) |
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
| (a) |
for purposes of Subsection (1)(a)(iv), the commission may make rules for determining what constitutes an attorney, accountant, or return preparer fee if that attorney, accountant, or return preparer fee is consistent with an attorney, accountant, or return preparer fee that may be deducted on a federal income tax return for estates and trusts; or |
| (b) |
for purposes of Subsection (1)(a)(v), the commission may make rules for determining what constitutes an other deduction or miscellaneous itemized deduction if that other deduction or miscellaneous itemized deduction is consistent with an other deduction or miscellaneous itemized deduction that may be deducted on a federal income tax return for estates and trusts. |
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Enacted by Chapter 389, 2008 General Session
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