| (1) |
As used in this section, “taxed pass-through entity taxpayer” means a resident or nonresident individual who:
Terms Used In Utah Code 59-10-1045- Individual: means a natural person and includes aliens and minors. See Utah Code 59-10-103
- Pass-through entity: means the same as that term is defined in Section 59-10-1402. See Utah Code 59-10-103
- Pass-through entity taxpayer: means the same as that term is defined in Section 59-10-1402. See Utah Code 59-10-103
- 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- Taxpayer: means any of the following that has income subject in whole or part to the tax imposed by this chapter:
| (ii) | an estate, a trust, or a beneficiary of an estate or a trust that is not a pass-through entity or a pass-through entity taxpayer; |
| (iii) | a pass-through entity; or |
| (iv) | a pass-through entity taxpayer. See Utah Code 59-10-103 |
| (a) |
has income attributed to the individual by a pass-through entity; |
| (b) |
receives the income described in Subsection (1)(a) after the pass-through entity pays the tax described in Subsection 59-10-1403.2(2); and |
| (c) |
adds the amount of tax paid on the income described in Subsection (1)(a) to adjusted gross income in accordance with Subsection 59-10-114(1)(i). |
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| (2) |
| (a) |
A taxed pass-through entity taxpayer may claim a nonrefundable tax credit for the taxes imposed under Subsection 59-10-1403.2(2). |
| (b) |
The tax credit is equal to the amount of the tax paid under Subsection 59-10-1403.2(2) by the pass-through entity on the income attributed to the taxed pass-through entity taxpayer. |
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| (3) |
| (a) |
A taxed pass-through entity taxpayer may carry forward the amount of the tax credit that exceeds the taxed pass-through entity taxpayer’s tax liability for a period that does not exceed the next five taxable years. |
| (b) |
A taxed pass-through entity taxpayer may not carry back the amount of the tax credit that exceeds the taxed pass-through entity taxpayer’s tax liability for the taxable year. |
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Amended by Chapter 470, 2023 General Session
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