Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 208 (2016GS)

Sponsor

Rep. Eliason, S.

Final action

Governor Signed 3/29/2016

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• clarifies from which fund payments for certain tax credits should be paid;
• addresses the circumstances for which a transfer is made from the General Fund into the Education Fund for tax credits related to energy efficient vehicles;
• addresses payment transfers for various tax credits and refunds; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

TAX ISSUES AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Steve Eliason
Senate Sponsor: 
Curtis S. Bramble
LONG TITLE
General Description:
This bill addresses tax issues.
Highlighted Provisions:
This bill:
▸ clarifies from which fund payments for certain tax credits should be paid;
▸ addresses the circumstances for which a transfer is made from the General Fund
into the Education Fund for tax credits related to energy efficient vehicles;
▸ addresses payment transfers for various tax credits and refunds; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
59-2-1208
, as last amended by Laws of Utah 2009, Chapter 302
59-2-1209
, as last amended by Laws of Utah 2009, Chapter 302
59-7-605
, as last amended by Laws of Utah 2015, Chapters 381 and 439
59-7-614.1
, as last amended by Laws of Utah 2008, Chapter 382
59-7-618
, as enacted by Laws of Utah 2015, Chapter 467
59-10-1005
, as last amended by Laws of Utah 2007, Chapter 122
59-10-1009
, as last amended by Laws of Utah 2015, Chapters 381 and 439
59-10-1033
, as enacted by Laws of Utah 2015, Chapter 467
59-10-1105
, as last amended by Laws of Utah 2008, Chapter 382
59-13-202
, as last amended by Laws of Utah 2006, Chapter 223
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
59-2-1208
 is amended to read:
59-2-1208.
Amount of homeowner's credit -- Cost-of-living adjustment --
Limitation -- General Fund as source of credit.
(1) (a) Subject to [
Subsections
] 
Subsection
 (2) [
and (4)
], for 
a
 calendar [
years
] 
year
beginning on or after January 1, 2007, a claimant may claim a homeowner's credit that does not
exceed the following amounts:
If household income is
Homeowner's credit
$0 -- $9,159
$798
$9,160 -- $12,214
$696
$12,215 -- $15,266
$597
$15,267 -- $18,319
$447
$18,320 -- $21,374
$348
$21,375 -- $24,246
$199
$24,247 -- $26,941
$98
(b) (i) For 
a
 calendar [
years
] 
year
 beginning on or after January 1, 2008, the
commission shall increase or decrease the household income eligibility amounts and the credits
under Subsection (1)(a) by a percentage equal to the percentage difference between the
consumer price index for the preceding calendar year and the consumer price index for
calendar year 2006.
(ii) For purposes of Subsection (1)(b)(i), the commission shall calculate the consumer
price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
(2) An individual who is claimed as a personal exemption on another individual's
individual income tax return during any portion of a calendar year for which the individual
seeks to claim a homeowner's credit under this section may not receive the homeowner's credit.
(3) [
The
] 
A payment for a
 homeowner's credit allowed by this section, and provided for
in Section 
59-2-1204
, shall be [
derived
] 
paid
 from the General Fund [
and appropriate transfers
made to effectuate this credit
].
[
(4) (a) Subject to Subsection (4)(b), for purposes of calculating a claimant's household
income to determine the amount of the claimant's homeowner's credit under Subsection (1), for
the taxable year that begins on January 1, 2009 and ends on December 31, 2009, a claimant's
household income shall be decreased by $1,000 for a dependent with respect to whom a
claimant is eligible to make a deduction as allowed as a personal exemption deduction on the
claimant's federal individual income tax return for the taxable year for which the household
income is calculated.
]
[
(b) For purposes of Subsection (4)(a):
]
[
(i) the maximum amount a claimant's household income may be decreased is $1,000;
and
]
[
(ii) "dependent" does not include the claimant or the claimant's spouse.
]
Section 2. Section 
59-2-1209
 is amended to read:
59-2-1209.
Amount of renter's credit -- Cost-of-living adjustment -- Renter's
credit may be claimed only for rent that does not constitute a rental assistance payment --
Limitation -- General Fund as source of credit -- Maximum credit.
(1) (a) Subject to Subsections (2)[
,
] 
and
 (3), [
and (6),
] for 
a
 calendar [
years
] 
year
beginning on or after January 1, 2007, a claimant may claim a renter's credit for the previous
calendar year that does not exceed the following amounts:
If household income is
Percentage of rent allowed as a credit
$0 -- $9,159
9.5%
$9,160 -- $12,214
8.5%
$12,215 -- $15,266
7.0%
$15,267 -- $18,319
5.5%
$18,320 -- $21,374
4.0%
$21,375 -- $24,246
3.0%
$24,247 -- $26,941
2.5%
(b) (i) For 
a
 calendar [
years
] 
year
 beginning on or after January 1, 2008, the
commission shall increase or decrease the household income eligibility amounts under
Subsection (1)(a) by a percentage equal to the percentage difference between the consumer
price index for the preceding calendar year and the consumer price index for calendar year
2006.
(ii) For purposes of Subsection (1)(b)(i), the commission shall calculate the consumer
price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
(2) A claimant may claim a renter's credit under this part only for rent that does not
constitute a rental assistance payment.
(3) An individual who is claimed as a personal exemption on another individual's
individual income tax return during any portion of a calendar year for which the individual
seeks to claim a renter's credit under this section may not receive a renter's credit.
(4) [
The
] 
A payment for a
 renter's credit allowed by this section, and provided for in
Section 
59-2-1204
, shall be [
derived
] 
paid
 from the General Fund [
and appropriate transfers
made to effectuate this credit
].
(5) For calendar years beginning on or after January 1, 2007, a credit under this section
may not exceed the maximum amount allowed as a homeowner's credit for each income
bracket under Subsection 
59-2-1208
(1)(a).
[
(6) (a) Subject to Subsection (6)(b), for purposes of calculating a claimant's household
income to determine the amount of the claimant's renter's credit under Subsection (1), for the
taxable year that begins on January 1, 2009 and ends on December 31, 2009, a claimant's
household income shall be decreased by $1,000 for a dependent with respect to whom a
claimant is eligible to make a deduction as allowed as a personal exemption deduction on the
claimant's federal individual income tax return for the taxable year for which the household
income is calculated.
]
[
(b) For purposes of Subsection (6)(a):
]
[
(i) the maximum amount a claimant's household income may be decreased is $1,000;
and
]
[
(ii) "dependent" does not include the claimant or the claimant's spouse.
]
Section 3. Section 
59-7-605
 is amended to read:
59-7-605.
Definitions -- Tax credits related to energy efficient vehicles.
(1) As used in this section:
(a) "Air quality standards" means that a vehicle's emissions are equal to or cleaner than
the standards established in bin 4 in Table S04-1, of 40 C.F.R. 86.1811-04(c)(6).
(b) "Board" means the Air Quality Board created under Title 19, Chapter 2, Air
Conservation Act.
(c) "Certified by the board" means that:
(i) a motor vehicle on which conversion equipment has been installed meets the
following criteria:
(A) before the installation of conversion equipment, the vehicle does not exceed the
emission cut points for a transient test driving cycle, as specified in 40 C.F.R. Part 51,
Appendix E to Subpart S, or an equivalent test for the make, model, and year of the vehicle;
and
(B) as a result of the installation of conversion equipment on the motor vehicle, the
motor vehicle has reduced emissions; or
(ii) special mobile equipment on which conversion equipment has been installed has
reduced emissions.
(d) "Clean fuel grant" means a grant awarded:
(i) under Title 19, Chapter 1, Part 4, Clean Fuels and Vehicle Technology Program
Act, for reimbursement of a portion of the incremental cost of an OEM vehicle or the cost of
conversion equipment; or
(ii) under Title 19, Chapter 2, Part 3, Conversion to Alternative Fuel Grant Program.
(e) "Conversion equipment" means equipment described in Subsection (2)(d) or (e).
(f) "OEM vehicle" [
has
] 
means
 the same [
meaning
] as 
that term is defined
 in Section
19-1-402
.
(g) "Original purchase" means the purchase of a vehicle that has never been titled or
registered and has been driven less than 7,500 miles.
(h) "Qualifying electric motorcycle" means a vehicle that:
(i) has a seat or saddle for the use of the rider;
(ii) is designed to travel with not more than three wheels in contact with the ground;
(iii) may lawfully be operated on a freeway, as defined in Section 
41-6a-102
;
(iv) is not fueled by natural gas;
(v) is fueled by electricity only; and
(vi) is an OEM vehicle except that the vehicle is fueled by a fuel described in
Subsection (1)(h)(v).
(i) "Qualifying electric vehicle" means a vehicle that:
(i) meets air quality standards;
(ii) is not fueled by natural gas;
(iii) is fueled by electricity only; and
(iv) is an OEM vehicle except that the vehicle is fueled by a fuel described in
Subsection (1)(i)(iii).
(j) "Qualifying plug-in hybrid vehicle" means a vehicle that:
(i) meets air quality standards;
(ii) is not fueled by natural gas or propane;
(iii) has a battery capacity that meets or exceeds the battery capacity described in
Section 30D(b)(3), Internal Revenue Code; and
(iv) is fueled by a combination of electricity and:
(A) diesel fuel;
(B) gasoline; or
(C) a mixture of gasoline and ethanol.
(k) "Reduced emissions" means:
(i) for purposes of a motor vehicle on which conversion equipment has been installed,
that the motor vehicle's emissions of regulated pollutants, when operating on a fuel listed in
Subsection (2)(e)(i) or (ii), is less than the emissions were before the installation of the
conversion equipment, as demonstrated by:
(A) certification of the conversion equipment by the federal Environmental Protection
Agency or by a state that has certification standards recognized by the board;
(B) testing the motor vehicle, before and after installation of the conversion equipment,
in accordance with 40 C.F.R. Part 86, Control of Emissions from New and In-use Highway
Vehicles and Engines, using all fuel the motor vehicle is capable of using;
(C) for a retrofit natural gas vehicle that is retrofit in accordance with Section
19-1-406
, testing that as a result of the retrofit, the retrofit natural gas vehicle satisfies the
emission standards applicable under Section 
19-1-406
; or
(D) any other test or standard recognized by board rule, made in accordance with Title
63G, Chapter 3, Utah Administrative Rulemaking Act; or
(ii) for purposes of special mobile equipment on which conversion equipment has been
installed, that the special mobile equipment's emissions of regulated pollutants, when operating
on a fuel listed in Subsection (2)(e)(i) or (ii), is less than the emissions were before the
installation of conversion equipment, as demonstrated by:
(A) certification of the conversion equipment by the federal Environmental Protection
Agency or by a state that has certification standards recognized by the board; or
(B) any other test or standard recognized by board rule, made in accordance with Title
63G, Chapter 3, Utah Administrative Rulemaking Act.
(l) "Special mobile equipment":
(i) means any mobile equipment or vehicle that is not designed or used primarily for
the transportation of persons or property; and
(ii) includes construction or maintenance equipment.
(2) For [
the
] 
a
 taxable [
years
] 
year
 beginning on or after January 1, 2015, but beginning
on or before December 31, 2016, a taxpayer may claim a tax credit against tax otherwise due
under this chapter or Chapter 8, Gross Receipts Tax on Certain Corporations Not Required to
Pay Corporate Franchise or Income Tax Act, in an amount equal to:
(a) (i) for the original purchase of a new qualifying electric vehicle that is registered in
this state, the lesser of:
(A) $1,500; or
(B) 35% of the purchase price of the vehicle; or
(ii) for the original purchase of a new qualifying plug-in hybrid vehicle that is
registered in this state, $1,000;
(b) for the original purchase of a new vehicle fueled by natural gas or propane that is
registered in this state, the lesser of:
(i) $1,500; or
(ii) 35% of the purchase price of the vehicle;
(c) for the original purchase of a new qualifying electric motorcycle that is registered in
this state, the lesser of:
(i) $750; or
(ii) 35% of the purchase price of the vehicle;
(d) 50% of the cost of equipment for conversion, if certified by the board, of a motor
vehicle registered in this state minus the amount of any clean fuel grant received, up to a
maximum tax credit of $1,500 per motor vehicle, if the motor vehicle is to:
(i) be fueled by propane, natural gas, or electricity;
(ii) be fueled by other fuel the board determines annually on or before July 1 to be at
least as effective in reducing air pollution as fuels under Subsection (2)(d)(i); or
(iii) meet the federal clean-fuel vehicle standards in the federal Clean Air Act
Amendments of 1990, 42 U.S.C. Sec. 7521 et seq.;
(e) 50% of the cost of equipment for conversion, if certified by the board, of a special
mobile equipment engine minus the amount of any clean fuel grant received, up to a maximum
tax credit of $1,000 per special mobile equipment engine, if the special mobile equipment is to
be fueled by:
(i) propane, natural gas, or electricity; or
(ii) other fuel the board determines annually on or before July 1 to be:
(A) at least as effective in reducing air pollution as the fuels under Subsection (2)(e)(i);
or
(B) substantially more effective in reducing air pollution than the fuel for which the
engine was originally designed; and
(f) for a lease of a vehicle described in Subsection (2)(a), (b), or (c), an amount equal to
the product of:
(i) the amount of tax credit the taxpayer would otherwise qualify to claim under
Subsection (2)(a), (b), or (c) had the taxpayer purchased the vehicle, except that the purchase
price described in Subsection (2)(a)(i)(B), (2)(b)(ii), or (2)(c)(ii) is considered to be the value
of the vehicle at the beginning of the lease; and
(ii) a percentage calculated by:
(A) determining the difference between the value of the vehicle at the beginning of the
lease, as stated in the lease agreement, and the value of the vehicle at the end of the lease, as
stated in the lease agreement; and
(B) dividing the difference determined under Subsection (2)(f)(ii)(A) by the value of
the vehicle at the beginning of the lease, as stated in the lease agreement.
(3) (a) The board shall:
(i) determine the amount of tax credit a taxpayer is allowed under this section; and
(ii) provide the taxpayer with a written certification of the amount of tax credit the
taxpayer is allowed under this section.
(b) A taxpayer shall provide proof of the purchase or lease of an item for which a tax
credit is allowed under this section by:
(i) providing proof to the board in the form the board requires by rule;
(ii) receiving a written statement from the board acknowledging receipt of the proof;
and
(iii) retaining the written statement described in Subsection (3)(b)(ii).
(c) A taxpayer shall retain the written certification described in Subsection (3)(a)(ii).
(4) Except as provided by Subsection (5), the tax credit under this section is allowed
only:
(a) against a tax owed under this chapter or Chapter 8, Gross Receipts Tax on Certain
Corporations Not Required to Pay Corporate Franchise or Income Tax Act, in the taxable year
by the taxpayer;
(b) for the taxable year in which a vehicle described in Subsection (2)(a), (b), or (c) is
purchased, a vehicle described in Subsection (2)(f) is leased, or conversion equipment
described in Subsection (2)(d) or (e) is installed; and
(c) once per vehicle.
(5) A taxpayer may not assign a tax credit under this section to another person.
(6) If the amount of a tax credit claimed by a taxpayer under this section exceeds the
taxpayer's tax liability under this chapter or Chapter 8, Gross Receipts Tax on Certain
Corporations Not Required to Pay Corporate Franchise or Income Tax Act, for a taxable year,
the amount of the tax credit exceeding the tax liability may be carried forward for a period that
does not exceed the next five taxable years.
(7) In accordance with any rules prescribed by the commission under Subsection (8),
the [
commission
] 
Division of Finance
 shall transfer at least annually from the General Fund
into the Education Fund the amount by which the amount of tax credit claimed under this
section for a [
taxable
] 
fiscal
 year exceeds $500,000.
(8) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules for making a transfer from the General Fund into the Education
Fund as required by Subsection (7).
Section 4. Section 
59-7-614.1
 is amended to read:
59-7-614.1.
Refundable tax credit for hand tools used in farming operations --
Procedures for refund -- Transfers from General Fund to Education Fund -- Rulemaking
authority.
(1) For 
a
 taxable [
years
] 
year
 beginning on or after January 1, 2004, a taxpayer may
claim a refundable tax credit:
(a) as provided in this section;
(b) against taxes otherwise due under this chapter; and
(c) in an amount equal to the amount of tax the taxpayer pays:
(i) on a purchase of a hand tool:
(A) if the purchase is made on or after July 1, 2004;
(B) if the hand tool is used or consumed primarily and directly in a farming operation
in the state; and
(C) if the unit purchase price of the hand tool is more than $250; and
(ii) under Chapter 12, Sales and Use Tax Act, on the purchase described in Subsection
(1)(c)(i).
(2) A taxpayer:
(a) shall retain the following to establish the amount of tax the resident or nonresident
individual paid under Chapter 12, Sales and Use Tax Act, on the purchase described in
Subsection (1)(c)(i):
(i) a receipt;
(ii) an invoice; or
(iii) a document similar to a document described in Subsection (2)(a)(i) or (ii); and
(b) may not carry forward or carry back a tax credit under this section.
(3) (a) In accordance with any rules prescribed by the commission under Subsection
(3)(b)[
,
]
:
(i)
 the commission shall[
: (i)
] make a refund to a taxpayer that claims a tax credit under
this section if the amount of the tax credit exceeds the taxpayer's tax liability under this
chapter; and
(ii) 
the Division of Finance shall
 transfer at least annually from the General Fund into
the Education Fund an amount equal to the amount of tax credit claimed under this section.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules providing procedures for making:
(i) a refund to a taxpayer as required by Subsection (3)(a)(i); or
(ii) transfers from the General Fund into the Education Fund as required by Subsection
(3)(a)(ii).
Section 5. Section 
59-7-618
 is amended to read:
59-7-618.
Tax credit related to natural gas heavy duty vehicles.
(1) As used in this section:
(a) "Board" means the Air Quality Board created under Title 19, Chapter 2, Air
Conservation Act.
(b) "Heavy duty vehicle" means a commercial category 7 or 8 vehicle, according to
vehicle classifications established by the Federal Highway Administration.
(c) "Natural gas" includes compressed natural gas and liquified natural gas.
(d) "Qualified heavy duty vehicle" means a heavy duty vehicle that:
(i) has never been titled or registered and has been driven less than 7,500 miles; and
(ii) is fueled by natural gas.
(e) "Qualified purchase" means the purchase of a qualified heavy duty vehicle.
(f) "Qualified taxpayer" means a taxpayer who:
(i) purchases a qualified heavy duty vehicle; and
(ii) receives a tax credit certificate from the board.
(g) "Small fleet" means 40 or fewer heavy duty vehicles registered in the state and
owned by a single taxpayer.
(h) "Tax credit certificate" means a certificate issued by the board certifying that a
taxpayer is entitled to a tax credit as provided in this section and stating the amount of the tax
credit.
(2) For a taxable year beginning on or after January 1, 2015, a qualified taxpayer may
claim a tax credit against tax otherwise due under this chapter or Chapter 8, Gross Receipts
Tax on Certain Corporations Not Required to Pay Corporate Franchise or Income Tax Act:
(a) in an amount equal to:
(i) $25,000, if the qualified purchase occurs during calendar year 2015, calendar year
2016, or calendar year 2017;
(ii) $20,000, if the qualified purchase occurs during calendar year 2018;
(iii) $18,000, if the qualified purchase occurs during calendar year 2019; and
(iv) $15,000, if the qualified purchase occurs during calendar year 2020; and
(b) if the taxpayer certifies under oath that over 50% of the miles that the heavy duty
vehicle that is the subject of the qualified purchase will travel annually will be within the state.
(3) (a) Except as provided in Subsection (3)(b), a taxpayer may not submit an
application for, and the board may not issue to the taxpayer, a tax credit certificate under this
section in any taxable year for a qualifying purchase if the board has already issued tax credit
certificates to the taxpayer for 10 qualifying purchases in the same taxable year.
(b) If, by May 1 of any year, more than 30% of the aggregate annual total amount of
tax credits under Subsection (5) has not been claimed, a taxpayer may submit an application
for, and the board may issue to the taxpayer, one or more tax credit certificates for up to eight
additional qualifying purchases, even if the board has already issued to that taxpayer tax credit
certificates for the maximum number of qualifying purchases allowed under Subsection (3)(a).
(4) (a) Subject to Subsection (4)(b), the board shall reserve 25% of all tax credits
available under this section for taxpayers with a small fleet.
(b) Subsection (4)(a) does not prevent a taxpayer from submitting an application for, or
the board from issuing, a tax credit certificate if the amount reserved under Subsection (4)(a)
for taxpayers with a small fleet has not been claimed by a date that is 90 days before the end of
the year.
(5) (a) The aggregate annual total amount of tax credits represented by tax credit
certificates that the board issues under this section, when combined with the aggregate annual
total amount of tax credits represented by tax credit certificates that the board issues under
Section 
59-10-1033
, may not exceed $500,000.
(b) The board shall, in accordance with Title 63G, Chapter 3, Utah Administrative
Rulemaking Act, make rules to establish a process whereby a taxpayer may reserve a potential
tax credit under this section for a limited time to allow the taxpayer to make a qualifying
purchase with the assurance that the aggregate limit under Subsection (5)(a) will not be met
before the taxpayer is able to submit an application for a tax credit certificate.
(6) (a) (i) A taxpayer wishing to claim a tax credit under this section shall, using forms
the board requires by rule:
(A) submit to the board an application for a tax credit;
(B) provide the board proof of a qualifying purchase; and
(C) submit to the board the certification under oath required under Subsection (2)(b).
(ii) Upon receiving the application, proof, and certification required under Subsection
(6)(a)(i), the board shall provide the taxpayer a written statement from the board
acknowledging receipt of the proof.
(b) If the board determines that a taxpayer qualifies for a tax credit under this section,
the board shall:
(i) determine the amount of tax credit the taxpayer is allowed under this section; and
(ii) provide the qualifying taxpayer with a written tax credit certificate:
(A) stating that the taxpayer has qualified for a tax credit; and
(B) showing the amount of tax credit for which the taxpayer has qualified under this
section.
(c) A taxpayer shall retain the tax credit certificate.
(d) The board shall at least annually submit to the commission a list of all taxpayers to
whom the board has issued a tax credit certificate and the amount of each tax credit represented
by the tax credit certificates.
(7) The tax credit under this section is allowed only:
(a) against a tax owed under this chapter or Chapter 8, Gross Receipts Tax on Certain
Corporations Not Required to Pay Corporate Franchise or Income Tax Act, in the taxable year
by the qualified taxpayer;
(b) for the taxable year in which the qualifying purchase occurs; and
(c) once per vehicle.
(8) A qualifying taxpayer may not assign a tax credit or a tax credit certificate under
this section to another person.
(9) If the amount of a tax credit claimed by a qualifying taxpayer under this section
exceeds the qualifying taxpayer's tax liability under this chapter or Chapter 8, Gross Receipts
Tax on Certain Corporations Not Required to Pay Corporate Franchise or Income Tax Act, for
a taxable year, the amount of the tax credit exceeding the tax liability may be carried forward
for a period that does not exceed the next five taxable years.
(10) (a) In accordance with any rules prescribed by the commission under Subsection
(10)(b), the [
commission
] 
Division of Finance
 shall transfer at least annually from the General
Fund into the Education Fund the aggregate amount of all tax credits claimed under this
section.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules for making a transfer from the General Fund into the Education
Fund as required by Subsection (10)(a).
Section 6. Section 
59-10-1005
 is amended to read:
59-10-1005.
Tax credit for at-home parent.
(1) As used in this section:
(a) "At-home parent" means a parent:
(i) who provides full-time care at the parent's residence for one or more of the parent's
own qualifying children;
(ii) who claims the qualifying child as a dependent on the parent's individual income
tax return for the taxable year for which the parent claims the credit; and
(iii) if the sum of the following amounts are $3,000 or less for the taxable year for
which the parent claims the credit:
(A) the total wages, tips, and other compensation listed on all of the parent's federal
Forms W-2; and
(B) the gross income listed on the parent's federal Form 1040 Schedule C, Profit or
Loss From Business.
(b) "Parent" means an individual who:
(i) is the biological mother or father of a qualifying child;
(ii) is the stepfather or stepmother of a qualifying child;
(iii) (A) legally adopts a qualifying child; or
(B) has a qualifying child placed in the individual's home:
(I) by a child placing agency as defined in Section 
62A-4a-601
; and
(II) for the purpose of legally adopting the child;
(iv) is a foster parent of a qualifying child; or
(v) is a legal guardian of a qualifying child.
(c) "Qualifying child" means a child who is no more than 12 months of age on the last
day of the taxable year for which the tax credit is claimed.
(2) For 
a
 taxable [
years
] 
year
 beginning on or after January 1, 2000, a claimant may
claim on the claimant's individual income tax return a nonrefundable tax credit of $100 for
each qualifying child if:
(a) the claimant or another claimant filing a joint individual income tax return with the
claimant is an at-home parent; and
(b) the adjusted gross income of all of the claimants filing the individual income tax
return is less than or equal to $50,000.
(3) A claimant may not carry forward or carry back a tax credit authorized by this
section.
[
(4) It is the intent of the Legislature that for fiscal years beginning on or after fiscal
year 2000-01, the Legislature appropriate from the General Fund a sufficient amount to replace
Education Fund revenues expended to provide for the tax credit under this section.
]
(4) (a) In accordance with any rules prescribed by the commission under Subsection
(4)(b), the Division of Finance shall transfer at least annually from the General Fund into the
Education Fund the aggregate amount of all tax credits claimed under this section.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules for making a transfer from the General Fund into the Education
Fund as required by Subsection (4)(a).
Section 7. Section 
59-10-1009
 is amended to read:
59-10-1009.
Definitions -- Tax credits related to energy efficient vehicles.
(1) As used in this section:
(a) "Air quality standards" means that a vehicle's emissions are equal to or cleaner than
the standards established in bin 4 in Table S04-1, of 40 C.F.R. 86.1811-04(c)(6).
(b) "Board" means the Air Quality Board created in Title 19, Chapter 2, Air
Conservation Act.
(c) "Certified by the board" means that:
(i) a motor vehicle on which conversion equipment has been installed meets the
following criteria:
(A) before the installation of conversion equipment, the vehicle does not exceed the
emission cut points for a transient test driving cycle, as specified in 40 C.F.R. Part 51,
Appendix E to Subpart S, or an equivalent test for the make, model, and year of the vehicle;
and
(B) as a result of the installation of conversion equipment on the motor vehicle, the
motor vehicle has reduced emissions; or
(ii) special mobile equipment on which conversion equipment has been installed has
reduced emissions.
(d) "Clean fuel grant" means a grant a claimant, estate, or trust receives under Title 19,
Chapter 1, Part 4, Clean Fuels and Vehicle Technology Program Act or Title 19, Chapter 2,
Part 3, Conversion to Alternative Fuel Grant Program, for reimbursement of a portion of the
incremental cost of the OEM vehicle or the cost of conversion equipment.
(e) "Conversion equipment" means equipment described in Subsection (2)(d) or (e).
(f) "OEM vehicle" [
has
] 
means
 the same [
meaning
] as 
that term is defined
 in Section
19-1-402
.
(g) "Original purchase" means the purchase of a vehicle that has never been titled or
registered and has been driven less than 7,500 miles.
(h) "Qualifying electric motorcycle" means a vehicle that:
(i) has a seat or saddle for the use of the rider;
(ii) is designed to travel with not more than three wheels in contact with the ground;
(iii) may lawfully be operated on a freeway, as defined in Section 
41-6a-102
;
(iv) is not fueled by natural gas;
(v) is fueled by electricity only; and
(vi) is an OEM vehicle except that the vehicle is fueled by a fuel described in
Subsection (1)(h)(v).
(i) "Qualifying electric vehicle" means a vehicle that:
(i) meets air quality standards;
(ii) is not fueled by natural gas;
(iii) is fueled by electricity only; and
(iv) is an OEM vehicle except that the vehicle is fueled by a fuel described in
Subsection (1)(i)(iii).
(j) "Qualifying plug-in hybrid vehicle" means a vehicle that:
(i) meets air quality standards;
(ii) is not fueled by natural gas or propane;
(iii) has a battery capacity that meets or exceeds the battery capacity described in
Section 30D(b)(3), Internal Revenue Code; and
(iv) is fueled by a combination of electricity and:
(A) diesel fuel;
(B) gasoline; or
(C) a mixture of gasoline and ethanol.
(k) "Reduced emissions" means:
(i) for purposes of a motor vehicle on which conversion equipment has been installed,
that the motor vehicle's emissions of regulated pollutants, when operating on a fuel listed in
Subsection (2)(e)(i) or (ii), is less than the emissions were before the installation of the
conversion equipment, as demonstrated by:
(A) certification of the conversion equipment by the federal Environmental Protection
Agency or by a state that has certification standards recognized by the board;
(B) testing the motor vehicle, before and after installation of the conversion equipment,
in accordance with 40 C.F.R. Part 86, Control of Emissions from New and In-use Highway
Vehicles and Engines, using all fuel the motor vehicle is capable of using;
(C) for a retrofit natural gas vehicle that is retrofit in accordance with Section
19-1-406
, testing that as a result of the retrofit, the retrofit natural gas vehicle satisfies the
emission standards applicable under Section 
19-1-406
; or
(D) any other test or standard recognized by board rule, made in accordance with Title
63G, Chapter 3, Utah Administrative Rulemaking Act; or
(ii) for purposes of special mobile equipment on which conversion equipment has been
installed, that the special mobile equipment's emissions of regulated pollutants, when operating
on a fuel listed in Subsection (2)(e)(i) or (ii), is less than the emissions were before the
installation of conversion equipment, as demonstrated by:
(A) certification of the conversion equipment by the federal Environmental Protection
Agency or by a state that has certification standards recognized by the board; or
(B) any other test or standard recognized by board rule, made in accordance with Title
63G, Chapter 3, Utah Administrative Rulemaking Act.
(l) "Special mobile equipment":
(i) means any mobile equipment or vehicle not designed or used primarily for the
transportation of persons or property; and
(ii) includes construction or maintenance equipment.
(2) For [
the
] 
a
 taxable [
years
] 
year
 beginning on or after January 1, 2015, but beginning
on or before December 31, 2016, a claimant, estate, or trust may claim a nonrefundable tax
credit against tax otherwise due under this chapter in an amount equal to:
(a) (i) for the original purchase of a new qualifying electric vehicle that is registered in
this state, the lesser of:
(A) $1,500; or
(B) 35% of the purchase price of the vehicle; or
(ii) for the original purchase of a new qualifying plug-in hybrid vehicle that is
registered in this state, $1,000;
(b) for the original purchase of a new vehicle fueled by natural gas or propane that is
registered in this state, the lesser of:
(i) $1,500; or
(ii) 35% of the purchase price of the vehicle;
(c) for the original purchase of a new qualifying electric motorcycle that is registered in
this state, the lesser of:
(i) $750; or
(ii) 35% of the purchase price of the vehicle;
(d) 50% of the cost of equipment for conversion, if certified by the board, of a motor
vehicle registered in this state minus the amount of any clean fuel grant received, up to a
maximum tax credit of $1,500 per vehicle, if the motor vehicle:
(i) is to be fueled by propane, natural gas, or electricity;
(ii) is to be fueled by other fuel the board determines annually on or before July 1 to be
at least as effective in reducing air pollution as fuels under Subsection (2)(d)(i); or
(iii) will meet the federal clean fuel vehicle standards in the federal Clean Air Act
Amendments of 1990, 42 U.S.C. Sec. 7521 et seq.;
(e) 50% of the cost of equipment for conversion, if certified by the board, of a special
mobile equipment engine minus the amount of any clean fuel grant received, up to a maximum
tax credit of $1,000 per special mobile equipment engine, if the special mobile equipment is to
be fueled by:
(i) propane, natural gas, or electricity; or
(ii) other fuel the board determines annually on or before July 1 to be:
(A) at least as effective in reducing air pollution as the fuels under Subsection (2)(e)(i);
or
(B) substantially more effective in reducing air pollution than the fuel for which the
engine was originally designed; and
(f) for a lease of a vehicle described in Subsection (2)(a), (b), or (c), an amount equal to
the product of:
(i) the amount of tax credit the claimant, estate, or trust would otherwise qualify to
claim under Subsection (2)(a), (b), or (c) had the claimant, estate, or trust purchased the
vehicle, except that the purchase price described in Subsection (2)(a)(i)(B), (2)(b)(ii), or
(2)(c)(ii) is considered to be the value of the vehicle at the beginning of the lease; and
(ii) a percentage calculated by:
(A) determining the difference between the value of the vehicle at the beginning of the
lease, as stated in the lease agreement, and the value of the vehicle at the end of the lease, as
stated in the lease agreement; and
(B) dividing the difference determined under Subsection (2)(f)(ii)(A) by the value of
the vehicle at the beginning of the lease, as stated in the lease agreement.
(3) (a) The board shall:
(i) determine the amount of tax credit a claimant, estate, or trust is allowed under this
section; and
(ii) provide the claimant, estate, or trust with a written certification of the amount of
tax credit the claimant, estate, or trust is allowed under this section.
(b) A claimant, estate, or trust shall provide proof of the purchase or lease of an item
for which a tax credit is allowed under this section by:
(i) providing proof to the board in the form the board requires by rule;
(ii) receiving a written statement from the board acknowledging receipt of the proof;
and
(iii) retaining the written statement described in Subsection (3)(b)(ii).
(c) A claimant, estate, or trust shall retain the written certification described in
Subsection (3)(a)(ii).
(4) Except as provided by Subsection (5), the tax credit under this section is allowed
only:
(a) against a tax owed under this chapter in the taxable year by the claimant, estate, or
trust;
(b) for the taxable year in which a vehicle described in Subsection (2)(a), (b), or (c) is
purchased, a vehicle described in Subsection (2)(f) is leased, or conversion equipment
described in Subsection (2)(d) or (e) is installed; and
(c) once per vehicle.
(5) A claimant, estate, or trust may not assign a tax credit under this section to another
person.
(6) If the amount of a tax credit claimed by a claimant, estate, or trust under this
section exceeds the claimant's, estate's, or trust's tax liability under this chapter for a taxable
year, the amount of the tax credit exceeding the tax liability may be carried forward for a period
that does not exceed the next five taxable years.
(7) In accordance with any rules prescribed by the commission under Subsection (8),
the [
commission
] 
Division of Finance
 shall transfer at least annually from the General Fund
into the Education Fund the amount by which the amount of tax credit claimed under this
section for a [
taxable
] 
fiscal
 year exceeds $500,000.
(8) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules for making a transfer from the General Fund into the Education
Fund as required by Subsection (7).
Section 8. Section 
59-10-1033
 is amended to read:
59-10-1033.
Tax credit related to natural gas heavy duty vehicles.
(1) As used in this section:
(a) "Board" means the Air Quality Board created under Title 19, Chapter 2, Air
Conservation Act.
(b) "Heavy duty vehicle" means a commercial category 7 or 8 vehicle, according to
vehicle classifications established by the Federal Highway Administration.
(c) "Natural gas" includes compressed natural gas and liquified natural gas.
(d) "Qualified heavy duty vehicle" means a heavy duty vehicle that:
(i) has never been titled or registered and has been driven less than 7,500 miles;
(ii) is fueled by natural gas; and
(iii) meets air quality standards.
(e) "Qualified purchase" means the purchase of a qualified heavy duty vehicle.
(f) "Qualified taxpayer" means a claimant, estate, or trust that:
(i) purchases a qualified heavy duty vehicle; and
(ii) receives a tax credit certificate from the board.
(g) "Small fleet" means 40 or fewer heavy duty vehicles registered in the state and
owned by a single claimant, estate, or trust.
(h) "Tax credit certificate" means a certificate issued by the board certifying that a
claimant, estate, or trust is entitled to a tax credit as provided in this section and stating the
amount of the tax credit.
(2) For a taxable year beginning on or after January 1, 2015, a qualified taxpayer may
claim a nonrefundable tax credit against tax otherwise due under this chapter:
(a) in an amount equal to:
(i) $25,000, if the qualified purchase occurs during calendar year 2015, calendar year
2016, or calendar year 2017;
(ii) $20,000, if the qualified purchase occurs during calendar year 2018;
(iii) $18,000, if the qualified purchase occurs during calendar year 2019; and
(iv) $15,000, if the qualified purchase occurs during calendar year 2020; and
(b) if the claimant, estate, or trust certifies under oath that over 50% of the miles that
the heavy duty vehicle that is the subject of the qualified purchase or qualified conversion will
travel annually will be within the state.
(3) (a) Except as provided in Subsection (3)(b), a claimant, estate, or trust may not
submit an application for, and the board may not issue to the claimant, estate, or trust, a tax
credit certificate under this section in any taxable year for a qualifying purchase if the board has
already issued to the claimant, estate, or trust 10 tax credits for qualifying purchases in the
same taxable year.
(b) If, by May 1 of any year, more than 30% of the aggregate annual total amount of
tax credits under Subsection (5) has not been claimed, a claimant, estate, or trust may submit
an application for, and the board may issue to the claimant, estate, or trust, one or more tax
credit certificates for up to eight additional qualifying purchases, even if the board has already
issued to that claimant, estate, or trust tax credit certificates for the maximum number of
qualifying purchases allowed under Subsection (3)(a).
(4) (a) Subject to Subsection (4)(b), the board shall reserve 25% of all tax credits
available under this section for claimants, estates, or trusts with a small fleet.
(b) Subsection (4)(a) does not prevent a claimant, estate, or trust from submitting an
application for, or the board from issuing, a tax credit certificate if the amount reserved under
Subsection (4)(a) for claimants, estates, or trusts with a small fleet has not been claimed by a
date that is 90 days before the end of the year.
(5) (a) The aggregate annual total amount of tax credits represented by tax credit
certificates that the board issues under this section, when combined with the aggregate annual
total amount of tax credits represented by tax credit certificates that the board issues under
Section 
59-7-618
, may not exceed $500,000.
(b) The board shall, in accordance with Title 63G, Chapter 3, Utah Administrative
Rulemaking Act, make rules to establish a process whereby a taxpayer may reserve a potential
tax credit under this section for a limited time to allow the taxpayer to make a qualifying
purchase with the assurance that the aggregate limit under Subsection (5)(a) will not be met
before the taxpayer is able to submit an application for a tax credit certificate.
(6) (a) (i) A claimant, estate, or trust wishing to claim a tax credit under this section
shall, using forms the board requires by rule:
(A) submit to the board an application for a tax credit;
(B) provide the board proof of a qualifying purchase or qualifying conversion; and
(C) submit to the board the certification under oath required under Subsection (2)(b).
(ii) Upon receiving the application, proof, and certification required under Subsection
(6)(a)(i), the board shall provide the claimant, estate, or trust a written statement from the board
acknowledging receipt of the proof.
(b) If the board determines that a claimant, estate, or trust qualifies for a tax credit
under this section, the board shall:
(i) determine the amount of tax credit the claimant, estate, or trust is allowed under this
section; and
(ii) provide the qualifying taxpayer with a written tax credit certificate:
(A) stating that the claimant, estate, or trust has qualified for a tax credit; and
(B) showing the amount of tax credit for which the claimant, estate, or trust has
qualified under this section.
(c) A claimant, estate, or trust shall retain the tax credit certificate.
(d) The board shall at least annually submit to the commission a list of all claimants,
estates, and trusts to which the board has issued a tax credit certificate and the amount of each
tax credit represented by the tax credit certificates.
(7) The tax credit under this section is allowed only:
(a) against a tax owed under this chapter in the taxable year by the qualified taxpayer;
(b) for the taxable year in which the qualifying purchase occurs; and
(c) once per vehicle.
(8) A qualifying taxpayer may not assign a tax credit or a tax credit certificate under
this section to another person.
(9) If the amount of a tax credit claimed by a qualifying taxpayer under this section
exceeds the qualifying taxpayer's tax liability under this chapter for a taxable year, the amount
of the tax credit exceeding the tax liability may be carried forward for a period that does not
exceed the next five taxable years.
(10) (a) In accordance with any rules prescribed by the commission under Subsection
(10)(b), the [
commission
] 
Division of Finance
 shall transfer at least annually from the General
Fund into the Education Fund the aggregate amount of all tax credits claimed under this
section.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules for making a transfer from the General Fund into the Education
Fund as required by Subsection (10)(a).
Section 9. Section 
59-10-1105
 is amended to read:
59-10-1105.
Tax credit for hand tools used in farming operations -- Procedures
for refund -- Transfers from General Fund to Education Fund -- Rulemaking authority.
(1) For 
a
 taxable [
years
] 
year
 beginning on or after January 1, 2004, a claimant, estate,
or trust may claim a refundable tax credit:
(a) as provided in this section;
(b) against taxes otherwise due under this chapter; and
(c) in an amount equal to the amount of tax the claimant, estate, or trust pays:
(i) on a purchase of a hand tool:
(A) if the purchase is made on or after July 1, 2004;
(B) if the hand tool is used or consumed primarily and directly in a farming operation
in the state; and
(C) if the unit purchase price of the hand tool is more than $250; and
(ii) under Chapter 12, Sales and Use Tax Act, on the purchase described in Subsection
(1)(c)(i).
(2) A claimant, estate, or trust:
(a) shall retain the following to establish the amount of tax the claimant, estate, or trust
paid under Chapter 12, Sales and Use Tax Act, on the purchase described in Subsection
(1)(c)(i):
(i) a receipt;
(ii) an invoice; or
(iii) a document similar to a document described in Subsection (2)(a)(i) or (ii); and
(b) may not carry forward or carry back a tax credit under this section.
(3) (a) In accordance with any rules prescribed by the commission under Subsection
(3)(b)[
,
]
:
(i)
 the commission shall[
: (i)
] make a refund to a claimant, estate, or trust that claims a
tax credit under this section if the amount of the tax credit exceeds the claimant's, estate's, or
trust's tax liability under this chapter; and
(ii) 
the Division of Finance shall
 transfer at least annually from the General Fund into
the Education Fund an amount equal to the 
aggregate
 amount of 
all
 tax [
credit
] 
credits
 claimed
under this section.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules providing procedures for making:
(i) a refund to a claimant, estate, or trust as required by Subsection (3)(a)(i); or
(ii) transfers from the General Fund into the Education Fund as required by Subsection
(3)(a)(ii).
Section 10. Section 
59-13-202
 is amended to read:
59-13-202.
Refund of tax for agricultural uses on individual income and
corporate franchise and income tax returns -- Application for permit for refund --
Division of Finance to pay claims -- Rules permitted to enforce part -- Penalties.
(1) As used in this section:
(a) (i) Except at provided in Subsection (1)(a)(ii), "claimant" means a resident or
nonresident person.
(ii) "Claimant" does not include an estate or trust.
(b) "Estate" means a nonresident estate or a resident estate.
(c) "Refundable tax credit" or "tax credit" means a tax credit that a claimant, estate, or
trust may claim:
(i) as provided by statute; and
(ii) regardless of whether, for the taxable year for which the claimant, estate, or trust
claims the tax credit, the claimant, estate, or trust has a tax liability under:
(A) Chapter 7, Corporate Franchise and Income Taxes; or
(B) Chapter 10, Individual Income Tax Act.
(d) "Trust" means a nonresident trust or a resident trust.
(2) Any claimant, estate, or trust that purchases and uses any motor fuel within the state
for the purpose of operating or propelling stationary farm engines and self-propelled farm
machinery used for nonhighway agricultural uses, and that has paid the tax on the motor fuel as
provided by this part, is entitled to a refund of the tax subject to the conditions and limitations
provided under this part.
(3) (a) A claimant, estate, or trust desiring a nonhighway agricultural use refund under
this part shall claim the refund as a refundable tax credit on the tax return the claimant, estate,
or trust files under:
(i) Chapter 7, Corporate Franchise and Income Taxes; or
(ii) Chapter 10, Individual Income Tax Act.
(b) A claimant, estate, or trust not subject to filing a tax return described in Subsection
(3)(a) shall obtain a permit and file claims on a calendar year basis.
(c) Any claimant, estate, or trust claiming a refundable tax credit under this section is
required to furnish any or all of the information outlined in this section upon request of the
commission.
(d) A refundable tax credit under this section is allowed only on purchases on which
tax is paid during the taxable year covered by the tax return.
(4) In order to obtain a permit for a refund of motor fuel tax paid, an application shall
be filed containing:
(a) the name of the claimant, estate, or trust;
(b) the claimant's, estate's, or trust's address;
(c) location and number of acres owned and operated, location and number of acres
rented and operated, the latter of which shall be verified by a signed statement from the legal
owner;
(d) number of acres planted to each crop, type of soil, and whether irrigated or dry; and
(e) make, size, 
and
 type of fuel used[
,
] and power rating of each piece of equipment
using fuel. If the claimant, estate, or trust is an operator of self-propelled or tractor-pulled farm
machinery with which the claimant, estate, or trust works for hire doing custom jobs for other
farmers, the application shall include information the commission requires and shall all be
contained in, and be considered part of, the original application. The claimant, estate, or trust
shall also file with the application a certificate from the county assessor showing each piece of
equipment using fuel. This original application and all information contained in it constitutes a
permanent file with the commission in the name of the claimant, estate, or trust.
(5) [
Any
] 
A
 claimant, estate, or trust claiming the right to a refund of motor fuel tax
paid shall file a claim with the commission by April 15 of each year for the refund for the
previous calendar year. The claim shall state the name and address of the claimant, estate, or
trust, the number of gallons of motor fuel purchased for nonhighway agricultural uses, and the
amount paid for the motor fuel. The claimant, estate, or trust shall retain the original invoice to
support the claim. No more than one claim for a tax refund may be filed annually by each user
of motor fuel purchased for nonhighway agricultural uses.
(6) Upon commission approval of the claim for a refund, the Division of Finance shall
pay the amount found due to the claimant, estate, or trust. The total amount of claims for
refunds shall be paid from motor fuel taxes.
(7) The commission [
may promulgate rules to enforce this part, and
] may refuse to
accept as evidence of purchase or payment any instruments [
which
] 
that
 show alteration or
[
which
] 
that
 fail to indicate the quantity of the purchase, the price of the motor fuel, a statement
that [
it
] 
the motor fuel
 is purchased for purposes other than transportation, and the date of
purchase and delivery. If the commission is not satisfied with the evidence submitted in
connection with the claim, [
it
] 
the commission
 may reject the claim or require additional
evidence.
(8) [
Any
] 
A
 claimant, estate, or trust aggrieved by the decision of the commission with
respect to a refundable tax credit or refund may file a request for agency action, requesting a
hearing before the commission.
(9) [
Any
] 
A
 claimant, estate, or trust that makes any false claim, report, or statement,
as claimant, estate, trust, agent, or creditor, with intent to defraud or secure a refund to which
the claimant, estate, or trust is not entitled, is subject to the criminal penalties provided under
Section 
59-1-401
, and the commission shall initiate the filing of a complaint for alleged
violations of this part. In addition to these penalties, the claimant, estate, or trust may not
receive any refund as a claimant, estate, or trust or as a creditor of a claimant, estate, or trust for
refund for a period of five years.
[
(10) Refunds to which a claimant, estate, or trust is entitled under this part shall be
paid from the Transportation Fund.
]
(10) (a) In accordance with any rules prescribed by the commission under Subsection
(10)(b), the Division of Finance shall transfer at least annually from the Transportation Fund
into the Education Fund an amount equal to the amount of the refund claimed under this
section.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules providing procedures for:
(i) making a refund to a claimant, estate, or trust as required by Subsection (3)(a)(i);
(ii) making a transfer from the Transportation Fund into the Education Fund as
required by Subsection (10)(a); or
(iii) enforcing this part.
Section 11. 
Effective date.
This bill takes effect on July 1, 2016.