Utah Code 59-10-1037. Nonrefundable enterprise zone tax credit

59-10-1037. Nonrefundable enterprise zone tax credit.

(1)

As used in this section:

Terms Used In Utah Code 59-10-1037

claimant: means a resident or nonresident person that has state taxable income. See Utah Code 59-10-1002
Employee: means the same as that term is defined in Section 59-10-401. See Utah Code 59-10-103
estate: means a nonresident estate or a resident estate that has state taxable income. See Utah Code 59-10-1002
Property: includes both real and personal property. See Utah Code 68-3-12.5
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)	“Business entity” means a claimant, estate, or trust that meets the definition of “business entity” as that term is defined in Section 63N-2-202.

(b)	“Office” means the Governor’s Office of Economic Opportunity created in Section 63N-1a-301.

(2)	Subject to the provisions of this section, a business entity may claim a nonrefundable enterprise zone tax credit as described in Section 63N-2-213.

(3)	The enterprise zone tax credit under this section is the amount listed as the tax credit amount on the tax credit certificate that the office issues to the business entity for the taxable year.

(4)	A business entity may carry forward a tax credit under this section for a period that does not exceed the next three taxable years, if the amount of the tax credit exceeds the business entity’s tax liability under this chapter for that taxable year.

(5)	A business entity may not claim or carry forward a tax credit under this part for a taxable year during which the business entity has claimed the targeted business income tax credit under Section 59-10-1112.

(6)

(a)	In accordance with Section 59-10-137, the Revenue and Taxation Interim Committee shall study the tax credit allowed by this section and make recommendations concerning whether the tax credit should be continued, modified, or repealed.

(b)

(i)

Except as provided in Subsection (6)(b)(ii), for purposes of the study required by this Subsection (6), the office shall provide by electronic means the following information, if available to the office, for each calendar year to the Office of the Legislative Fiscal Analyst:

(A)	the amount of tax credits provided in each development zone;

(B)	the number of new full-time employee positions reported to obtain tax credits in each development zone;

(C)	the amount of tax credits awarded for rehabilitating a building in each development zone;

(D)	the amount of tax credits awarded for investing in a plant, equipment, or other depreciable property in each development zone;

(E)	the information related to the tax credit contained in the office’s latest report under Section 63N-1a-306; and

(F)	other information that the Office of the Legislative Fiscal Analyst requests.

(ii)

(A)	In providing the information described in Subsection (6)(b)(i), the office shall redact information that identifies a recipient of a tax credit under this section.

(B)

If, notwithstanding the redactions made under Subsection (6)(b)(ii)(A), reporting the information described in Subsection (6)(b)(i) might disclose the identity of a recipient of a tax credit, the office may file a request with the Revenue and Taxation Interim Committee to provide the information described in Subsection (6)(b)(i) in the aggregate for all development zones that receive the tax credit under this section.

(c)	As part of the study required by this Subsection (6), the Office of the Legislative Fiscal Analyst shall report to the Revenue and Taxation Interim Committee a summary and analysis of the information provided to the Office of the Legislative Fiscal Analyst by the office under Subsection (6)(b).

(d)

The Revenue and Taxation Interim Committee shall ensure that the recommendations described in Subsection (6)(a) include an evaluation of:

(i)	the cost of the tax credit to the state;

(ii)	the purpose and effectiveness of the tax credit; and

(iii)

the extent to which the state benefits from the tax credit.

Amended by Chapter 282, 2021 General Session

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