Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 294 Second Substitute (2017GS)

Sponsor

Rep. Westwood, J.

Final action

House/ filed 3/9/2017

Outcome

Failed / filed without passage

Summary

What it does

• This bill:
• defines terms;
• enacts a refundable state earned income tax credit for an individual who is experiencing intergenerational poverty or moving out of intergenerational poverty;
• requires the Department of Workforce Services to notify individuals who are eligible for the state earned income tax credit and to provide certain information about those individuals to the State Tax Commission;
• provides for apportionment of the tax credit;
• addresses the time period for the State Tax Commission to issue a refund of the state earned income tax credit; and
• requires transfers from the General Fund to reimburse the Education Fund for the amount of the tax credit claimed.

Every vote on this bill

Bill text

UTAH INTERGENERATIONAL POVERTY WORK AND
SELF-SUFFICIENCY TAX CREDIT
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: John R. Westwood
Senate Sponsor: 
____________
LONG TITLE
General Description:
This bill enacts a state earned income tax credit. 
Highlighted Provisions:
This bill:
▸ defines terms;
▸ enacts a refundable state earned income tax credit for an individual who is
experiencing intergenerational poverty or moving out of intergenerational poverty;
▸ requires the Department of Workforce Services to notify individuals who are
eligible for the state earned income tax credit and to provide certain information
about those individuals to the State Tax Commission;
▸ provides for apportionment of the tax credit;
▸ addresses the time period for the State Tax Commission to issue a refund of the
state earned income tax credit; and
▸ requires transfers from the General Fund to reimburse the Education Fund for the
amount of the tax credit claimed. 
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
59-10-529.1
, as enacted by Laws of Utah 2015, Chapter 369
ENACTS:
35A-9-202
, Utah Code Annotated 1953
59-10-1102.1
, Utah Code Annotated 1953
59-10-1112
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
35A-9-202
 is enacted to read:
 35A-9-202.
Tax credit notification -- Intergenerational poverty report to tax
commission.
(1) As used in this section:
(a) "Commission" means the State Tax Commission.
(b) "Moving out of intergenerational poverty" means a situation where an individual
was identified by the department as experiencing intergenerational poverty in the year before
the previous calendar year, but the individual did not receive public assistance during the
previous calendar year.
(2) (a) On or before January 31, the department shall notify the following individuals
of the tax credit available under Section 
59-10-1112
:
(i) an individual identified by the department as experiencing intergenerational poverty
due to:
(A) the individual's receipt of public assistance for not less than 12 months during the
previous five years; and
(B) the individual's or the individual's family's receipt of public assistance for not less
than 12 months during the individual's childhood; and
(ii) an individual identified by the department as moving out of intergenerational
poverty.
(b) The notice described in Subsection (2)(a) shall explain the eligibility requirements
for and the method for claiming a tax credit under Section 
59-10-1112
.
(3) On or before March 1, the department shall provide the commission with an
electronic report stating, for each individual to whom the department sent the notice described
in Subsection (2):
(a) the name of the individual; and
(b) the social security number of the individual.
Section 2. Section 
59-10-529.1
 is amended to read:
59-10-529.1.
Time period for commission to issue a refund.
(1) Except as provided in Subsection (2), the commission may not issue a refund
before March 1.
(2) The commission may issue a refund before March 1 if, before March 1, the
commission determines that:
(a) 
(i)
 an employer has filed the one or more forms in accordance with Subsection
59-10-406
(8) the employer is required to file with respect to an individual; and
(ii) for a refund of a tax credit described in Section 
59-10-1112
, the Department of
Workforce Services has submitted the electronic report required by Section 
59-10-1112
; and
(b) the individual has filed a return in accordance with this chapter.
Section 3. Section 
59-10-1102.1
 is enacted to read:
 59-10-1102.1.
Apportionment of tax credit.
A nonresident individual or a part-year resident individual who claims the tax credit
described in Section 
59-10-1112
 may only claim an apportioned amount of the tax credit equal
to the product of:
(1) the state income tax percentage for a nonresident individual or the state income tax
percentage for a part-year resident individual; and
(2) the amount of the tax credit that the nonresident individual or the part-year resident
individual would have been allowed to claim but for the apportionment requirement of this
section.
Section 4. Section 
59-10-1112
 is enacted to read:
 59-10-1112.
Refundable state earned income tax credit -- Definition -- Tax credit
calculation -- Transfers from General Fund.
(1) As used in this section:
(a) "Claimant" means a resident or nonresident individual who:
(i) is identified by the department as experiencing intergenerational poverty or moving
out of intergenerational poverty; and
(ii) claimed the federal earned income tax credit for the previous taxable year.
(b) "Department" means the Department of Workforce Services created in Section
35A-1-103
.
(c) "Federal earned income tax credit" means the federal earned income tax credit
described in Section 32, Internal Revenue Code.
(d) "Intergenerational poverty" means the same as that term is defined in Section
35A-9-102
.
(e) "Moving out of intergenerational poverty" means the same as that term is defined in
Section 
35A-9-202
.
(2) Except as provided in Section 
59-10-1102.1
, a claimant may claim a refundable
earned income tax credit equal to 10% of the federal earned income tax credit that the claimant
claimed on a federal income tax return in the previous taxable year.
(3) (a) 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 for making the transfer described in Subsection (3)(a).
Section 5. 
Effective date.
This bill takes effect for a taxable year beginning on or after January 1, 2018.
Legislative Review Note
Office of Legislative Research and General Counsel