Utah Code 59-10-1035. Nonrefundable tax credit for contribution to state Achieving a Better Life Experience Program account

59-10-1035. Nonrefundable tax credit for contribution to state Achieving a Better Life Experience Program account.

(1)

As used in this section:

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}
claimant: means a resident or nonresident person that has state taxable income. See Utah Code 59-10-1002
estate: means a nonresident estate or a resident estate that has state taxable income. See Utah Code 59-10-1002
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

(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
(a)	“Account” means an account in a qualified ABLE program where the designated beneficiary of the account is a resident of this state.

(b)

“Contributor” means a claimant, estate, or trust that:

(i)	makes a contribution to an account; and

(ii)	receives a statement from the qualified ABLE program itemizing the contribution.

(c)	“Designated beneficiary” means the same as that term is defined in 26 U.S.C. § 529A.

(d)	“Qualified ABLE program” means the same as that term is defined in Section 35A-12-102.

(2)	A contributor to an account may claim a nonrefundable tax credit as provided in this section.

(3)

Subject to the other provisions of this section, the tax credit is equal to the product of:

(a)	the percentage listed in Subsection 59-10-104(2); and

(b)

the total amount of contributions:

(i)	the contributor makes for the taxable year; and

(ii)	for which the contributor receives a statement from the qualified ABLE program itemizing the contributions.

(4)

A contributor may not claim a tax credit under this section:

(a)	for an amount of excess contribution to an account that is returned to the contributor; or

(b)	with respect to an amount the contributor deducts on a federal income tax return.

(5)	A tax credit under this section may not be carried forward or carried back.

Amended by Chapter 367, 2021 General Session