Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 190 Fourth Substitute (2016GS)

Sponsor

Rep. Wilson, B.

Final action

Governor Signed 3/29/2016

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• defines a qualifying taxpayer for purposes of this tax credit; and
• enacts a nonrefundable income tax credit for a pass-through entity engaging in manufacturing or oil and gas pipeline and related structure construction in a foreign country.

Every vote on this bill

Bill text

INTERNATIONAL TAX CREDITS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Brad R. Wilson
Senate Sponsor: 
____________
LONG TITLE
General Description:
This bill creates a nonrefundable income tax credit for certain manufacturing and
construction entities that pay a tax to a foreign country.
Highlighted Provisions:
This bill:
▸ defines a qualifying taxpayer for purposes of this tax credit; and
▸ enacts a nonrefundable income tax credit for a pass-through entity engaging in
manufacturing or oil and gas pipeline and related structure construction in a foreign
country.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
ENACTS:
59-10-1036
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
59-10-1036
 is enacted to read:
 59-10-1036.
Definitions -- Tax credit for tax paid to a foreign country.
(1) As used in this section, "qualifying taxpayer" means a person that:
(a) is a resident pass-through entity taxpayer as that term is defined in Section
59-10-1402
;
(b) earns taxable income through economic activities classified in one of the following
NAICS codes of the 2002 or 2007 North American Industry Classification System of the
federal Executive Office of the President, Office of Management and Budget:
(i) NAICS Code Section 33242, Metal Tank (Heavy Gauge) Manufacturing; or
(ii) NAICS Code Section 23712, Oil and Gas Pipeline and Related Structures
Construction; and
(c) pays income taxes to a foreign country.
(2) Except as provided in Subsection (4), a qualifying taxpayer may claim a
nonrefundable tax credit against the tax otherwise due under this chapter, equal to the amount
of the tax that is imposed:
(a) by a foreign country;
(b) on the qualifying taxpayer for the taxable year; and
(c) on income of the qualifying taxpayer:
(i) derived from sources within that foreign country; and
(ii) if that income is also subject to tax under this chapter.
(3) A qualifying taxpayer shall compute and claim the tax credit provided by this
section in accordance with rules made by the commission in accordance with Title 63G,
Chapter 3, Utah Administrative Rulemaking Act.
(4) (a) Subject to Subsection (4)(b), the qualifying taxpayer may carry forward, for a
period that does not exceed the next five taxable years, the amount of the tax credit that
exceeds the qualifying taxpayer's tax liability under this chapter for a taxable year.
(b) The application of the tax credit provided under this section may not operate to
reduce the tax payable under this chapter to an amount less than would have been payable were
the income from the foreign country disregarded.
(5) A qualifying taxpayer may not assign the tax credit provided for by this section to
another person.
Section 2. 
Effective date.
This bill takes effect on January 1, 2017.
Legislative Review Note
Office of Legislative Research and General Counsel