Utah Code 59-10-1107. Refundable economic development tax credit

59-10-1107. Refundable economic development tax credit.

(1)

As used in this section:

Terms Used In Utah Code 59-10-1107

claimant: means a resident or nonresident person. See Utah Code 59-10-1102
estate: means a nonresident estate or a resident estate. See Utah Code 59-10-1102
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 claim:

(a)	as provided by statute; and

(b)

regardless of whether the claimant, estate, or trust has a tax liability under this chapter for a taxable year. See Utah Code 59-10-1102

Taxpayer: means any of the following that has income subject in whole or part to the tax imposed by this chapter:

(i)	an individual;

(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 trust: means a nonresident trust or a resident trust. See Utah Code 59-10-1102
(a)	“Business entity” means a claimant, estate, or trust that meets the definition of “business entity” as defined in Section 63N-2-103.

(b)	“Incremental job” means the same as that term is defined in Section 63N-1a-102.

(c)	“New state revenue” means the same as that term is defined in Section 63N-1a-102.

(d)	“Office” means the Governor’s Office of Economic Opportunity.

(2)	Subject to the other provisions of this section, a business entity may claim a refundable tax credit for economic development.

(3)	The 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)	In accordance with any rules prescribed by the commission under Subsection (4)(b), the commission shall make a refund to a business entity that claims a tax credit under this section if the amount of the tax credit exceeds the business entity’s tax liability for a taxable year.

(b)	In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules providing procedures for making a refund to a business entity as required by Subsection (4)(a).

(5)

(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)

Except as provided in Subsection (5)(c), for purposes of the study required by this Subsection (5), the office shall provide the following information, if available to the office, to the Revenue and Taxation Interim Committee by electronic means:

(i)	the amount of tax credit the office grants to each taxpayer for each calendar year;

(ii)	the criteria the office uses in granting a tax credit;

(iii)

the new state revenue generated by each taxpayer for each calendar year;

(iv)

estimates for each of the next three calendar years of the following:

(A)	the amount of tax credits that the office will grant;

(B)	the amount of new state revenue that will be generated; and

(C)	the number of new incremental jobs within the state that will be generated;

(v)	the information contained in the office’s latest report under Section 63N-2-106; and

(vi)	any other information that the Revenue and Taxation Interim Committee requests.

(c)

(i)	In providing the information described in Subsection (5)(b), the office shall redact information that identifies a recipient of a tax credit under this section.

(ii)

If, notwithstanding the redactions made under Subsection (5)(c)(i), reporting the information described in Subsection (5)(b) 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 (5)(b) in the aggregate for all taxpayers that receive the tax credit under this section.

(d)

The Revenue and Taxation Interim Committee shall ensure that the recommendations described in Subsection (5)(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

Previous section

Next section

Part 11 Contents