Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 179 (2020GS)

Sponsor

Rep. Christofferson, K.

Final action

Governor Signed 3/24/2020

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• modifies the carry forward provisions of the recycling market development zone income tax credits by:
• allowing a carry forward for the amount of the credit that the claimant did not use during the taxable year; and
• limiting the carry forward to the credit allowed for purchases of machinery and equipment; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

RECYCLING MARKET DEVELOPMENT ZONE TAX CREDIT
AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Kay J. Christofferson
Senate Sponsor: 
Lincoln Fillmore
LONG TITLE
General Description:
This bill modifies the carry forward provisions of the recycling market development
zone income tax credits.
Highlighted Provisions:
This bill:
▸ modifies the carry forward provisions of the recycling market development zone
income tax credits by:
• allowing a carry forward for the amount of the credit that the claimant did not
use during the taxable year; and
• limiting the carry forward to the credit allowed for purchases of machinery and
equipment; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides retrospective operation.
Utah Code Sections Affected:
AMENDS:
59-7-610
, as last amended by Laws of Utah 2019, Chapter 247
59-10-1002
, as last amended by Laws of Utah 2006, Fourth Special Session, Chapter 2
59-10-1007
, as last amended by Laws of Utah 2019, Chapter 247
63I-1-263
, as last amended by Laws of Utah 2019, Chapters 89, 246, 311, 414, 468,
469, 482 and last amended by Coordination Clause, Laws of Utah 2019, Chapter
246
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
59-7-610
 is amended to read:
59-7-610.
Recycling market development zones tax credits.
(1) Subject to other provisions of this section, a taxpayer that is a business operating in
a recycling market development zone as defined in Section 
63N-2-402
 may claim the following
nonrefundable tax credits:
(a) a tax credit of 5% of the purchase price paid for machinery and equipment used
directly in:
(i) commercial composting; or
(ii) manufacturing facilities or plant units that:
(A) manufacture, process, compound, or produce recycled items of tangible personal
property for sale; or
(B) reduce or reuse postconsumer waste material; and
(b) a tax credit equal to the lesser of:
(i) 20% of net expenditures to third parties for rent, wages, supplies, tools, test
inventory, and utilities made by the taxpayer for establishing and operating recycling or
composting technology in Utah; and
(ii) $2,000.
(2) (a) To claim a tax credit described in Subsection (1), the taxpayer shall receive
from the Governor's Office of Economic Development a written certification, on a form
approved by the commission, that includes:
(i) a statement that the taxpayer is operating a business within the boundaries of a
recycling market development zone;
(ii) for claims of the tax credit described in Subsection (1)(a):
(A) the type of the machinery and equipment that the taxpayer purchased;
(B) the date that the taxpayer purchased the machinery and equipment;
(C) the purchase price for the machinery and equipment;
(D) the total purchase price for all machinery and equipment for which the taxpayer is
claiming a tax credit;
(E) a statement that the machinery and equipment are integral to the composting or
recycling process; and
(F) the amount of the taxpayer's tax credit; and
(iii) for claims of the tax credit described in Subsection (1)(b):
(A) the type of net expenditure that the taxpayer made to a third party;
(B) the date that the taxpayer made the payment to a third party;
(C) the amount that the taxpayer paid to each third party;
(D) the total amount that the taxpayer paid to all third parties;
(E) a statement that the net expenditures support the establishment and operation of
recycling or composting technology in Utah; and
(F) the amount of the taxpayer's tax credit.
(b) (i) The Governor's Office of Economic Development shall provide a taxpayer
seeking to claim a tax credit under Subsection (1) with a copy of the written certification.
(ii) The taxpayer shall retain a copy of the written certification for the same period of
time that a person is required to keep books and records under Section 
59-1-1406
.
(c) The Governor's Office of Economic Development shall submit to the commission
an electronic list that includes:
(i) the name and identifying information of each taxpayer to which the office issues a
written certification; and
(ii) for each taxpayer, the amount of each tax credit listed on the written certification.
(3) A taxpayer may not claim a tax credit under Subsection (1)(a), Subsection (1)(b), or
both that exceeds 40% of the taxpayer's state income tax liability as the tax liability is
calculated:
(a) for the taxable year in which the taxpayer made the purchases or payments;
(b) before any other tax credits the taxpayer may claim for the taxable year; and
(c) before the taxpayer claiming a tax credit authorized by this section.
(4) The commission shall make rules governing what information a taxpayer shall file
with the commission to verify the entitlement to and amount of a tax credit.
(5) Except as provided in Subsections (6) through (8), a taxpayer may carry forward, to
the next three taxable years, the amount of [
the tax credit that exceeds the taxpayer's income
tax liability
] 
a tax credit described in Subsection (1)(a) that the taxpayer does not use
 for the
taxable year.
(6) A taxpayer may not claim or carry forward a tax credit described in Subsection
(1)(a) in a taxable year during which the taxpayer claims or carries forward a tax credit under
Section 
63N-2-213
.
(7) A taxpayer may not claim [
or carry forward
] a tax credit described in Subsection
(1)(b) in a taxable year during which the taxpayer claims or carries forward a tax credit under
Section 
63N-2-213
.
(8) A taxpayer may not claim or carry forward a tax credit under this section for a
taxable year during which the taxpayer claims the targeted business income tax credit under
Section 
59-7-624
.
Section 2. Section 
59-10-1002
 is amended to read:
59-10-1002.
Definitions.
As used in this part:
(1) (a) Except as provided in Subsection (1)(b) or Subsection 
59-10-1003
(2),
"claimant" means a resident or nonresident person that has state taxable income.
(b) "Claimant" does not include an estate or trust.
(2) Except as provided in Subsection 
59-10-1003
(2), "estate" means a nonresident
estate or a resident estate that has state taxable income.
(3) "Nonrefundable tax credit" or "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
(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.
(4) Except as provided in Subsection 
59-10-1003
(2), "trust" means a nonresident trust
or a resident trust that has state taxable income.
Section 3. Section 
59-10-1007
 is amended to read:
59-10-1007.
Recycling market development zones tax credits.
(1) Subject to other provisions of this section, a claimant, estate, or trust in a recycling
market development zone as defined in Section 
63N-2-402
 may claim the following
nonrefundable tax credits:
(a) a tax credit of 5% of the purchase price paid for machinery and equipment used
directly in:
(i) commercial composting; or
(ii) manufacturing facilities or plant units that:
(A) manufacture, process, compound, or produce recycled items of tangible personal
property for sale; or
(B) reduce or reuse postconsumer waste material; and
(b) a tax credit equal to the lesser of:
(i) 20% of net expenditures to third parties for rent, wages, supplies, tools, test
inventory, and utilities made by the claimant, estate, or trust for establishing and operating
recycling or composting technology in Utah; and
(ii) $2,000.
(2) (a) To claim a tax credit described in Subsection (1), the claimant, estate, or trust
shall receive from the Governor's Office of Economic Development a written certification, on a
form approved by the commission, that includes:
(i) a statement that the claimant, estate, or trust is operating within the boundaries of a
recycling market development zone;
(ii) for claims of the tax credit described in Subsection (1)(a):
(A) the type of the machinery and equipment that the claimant, estate, or trust
purchased;
(B) the date that the claimant, estate, or trust purchased the machinery and equipment;
(C) the purchase price for the machinery and equipment;
(D) the total purchase price for all machinery and equipment for which the claimant,
estate, or trust is claiming a tax credit;
(E) the amount of the claimant's, estate's, or trust's tax credit; and
(F) a statement that the machinery and equipment are integral to the composting or
recycling process; and
(iii) for claims of the tax credit described in Subsection (1)(b):
(A) the type of net expenditure that the claimant, estate, or trust made to a third party;
(B) the date that the claimant, estate, or trust made the payment to a third party;
(C) the amount that the claimant, estate, or trust paid to each third party;
(D) the total amount that the claimant, estate, or trust paid to all third parties;
(E) a statement that the net expenditures support the establishment and operation of
recycling or composting technology in Utah; and
(F) the amount of the claimant's, estate's, or trust's tax credit.
(b) (i) The Governor's Office of Economic Development shall provide a claimant,
estate, or trust seeking to claim a tax credit under Subsection (1) with a copy of the written
certification.
(ii) The claimant, estate, or trust shall retain a copy of the written certification for the
same period of time that a person is required to keep books and records under Section
59-1-1406
.
(c) The Governor's Office of Economic Development shall submit to the commission
an electronic list that includes:
(i) the name and identifying information of each claimant, estate, or trust to which the
office issues a written certification; and
(ii) for each claimant, estate, or trust, the amount of each tax credit listed on the written
certification.
(3) A claimant, estate, or trust may not claim a tax credit under Subsection (1)(a),
Subsection (1)(b), or both that exceeds 40% of the claimant's, estate's, or trust's state income
tax liability as the tax liability is calculated:
(a) for the taxable year in which the claimant, estate, or trust made the purchases or
payments;
(b) before any other tax credits the claimant, estate, or trust may claim for the taxable
year; and
(c) before the claimant, estate, or trust claiming a tax credit authorized by this section.
(4) The commission shall make rules governing what information a claimant, estate, or
trust shall file with the commission to verify the entitlement to and amount of a tax credit.
(5) Except as provided in Subsections (6) through (8), a claimant, estate, or trust may
carry forward, to the next three taxable years, the amount of [
the tax credit that exceeds the
taxpayer's income tax liability
] 
a tax credit described in Subsection (1)(a) that the claimant,
estate, or trust does not use
 for the taxable year.
(6) A claimant, estate, or trust may not claim or carry forward a tax credit described in
Subsection (1)(a) in a taxable year during which the claimant, estate, or trust claims or carries
forward a tax credit under Section 
63N-2-213
.
(7) A claimant, estate, or trust may not claim a tax credit described in Subsection (1)(b)
in a taxable year during which the claimant, estate, or trust claims or carries forward a tax
credit under Section 
63N-2-213
.
(8) A claimant, estate, or trust may not claim or carry forward a tax credit available
under this section for a taxable year during which the claimant, estate, or trust claims the
targeted business income tax credit under Section 
59-10-1112
.
Section 4. Section 
63I-1-263
 is amended to read:
63I-1-263.
Repeal dates, Titles 63A to 63N.
(1) In relation to the Utah Transparency Advisory Board, on January 1, 2025:
(a) Subsection 
63A-1-201
(1) is repealed;
(b) Subsection 
63A-1-202
(2)(c), the language that states "using criteria established by
the board" is repealed;
(c) Section 
63A-1-203
 is repealed;
(d) Subsections 
63A-1-204
(1) and (2), the language that states "After consultation with
the board, and" is repealed; and
(e) Subsection 
63A-1-204
(1)(b), the language that states "using the standards provided
in Subsection 
63A-1-203
(3)(c)" is repealed.
(2) Subsection 
63A-5-228
(2)(h), relating to prioritizing and allocating capital
improvement funding, is repealed [
on
] July 1, 2024.
(3) Section 
63A-5-603
, State Facility Energy Efficiency Fund, is repealed July 1, 2023.
(4) Title 63C, Chapter 4a, Constitutional and Federalism Defense Act, is repealed July
1, 2028.
(5) Title 63C, Chapter 6, Utah Seismic Safety Commission, is repealed January 1,
2025.
(6) Title 63C, Chapter 16, Prison Development Commission Act, is repealed July 1,
2020.
(7) Title 63C, Chapter 17, Point of the Mountain Development Commission Act, is
repealed July 1, 2021.
(8) Title 63C, Chapter 18, Mental Health Crisis Line Commission, is repealed July 1,
2023.
(9) Title 63G, Chapter 21, Agreements to Provide State Services, is repealed July 1,
2025.
(10) Title 63H, Chapter 4, Heber Valley Historic Railroad Authority, is repealed July 1,
2020.
(11) In relation to the State Fair Corporation Board of Directors, on January 1, 2025:
(a) Subsection 
63H-6-104
(2)(c), related to a Senate appointment, is repealed;
(b) Subsection 
63H-6-104
(2)(d), related to a House appointment, is repealed;
(c) in Subsection 
63H-6-104
(2)(e), the language that states ", of whom only one may
be a legislator, in accordance with Subsection (3)(e)," is repealed;
(d) Subsection 
63H-6-104
(3)(a)(i) is amended to read:
"(3)(a)(i) Except as provided in Subsection (3)(a)(ii), a board member appointed under
Subsection (2)(e) or (f) shall serve a term that expires on the December 1 four years after the
year that the board member was appointed.";
(e) in Subsections 
63H-6-104
(3)(a)(ii), (c)(ii), and (d), the language that states "the
president of the Senate, the speaker of the House, the governor," is repealed and replaced with
"the governor"; and
(f) Subsection 
63H-6-104
(3)(e), related to limits on the number of legislators, is
repealed.
(12) Title 63H, Chapter 8, Utah Housing Corporation Act, is repealed July 1, 2026.
(13) Section 
63M-7-212
 is repealed [
on
] December 31, 2019.
(14) On July 1, 2025:
(a) in Subsection 
17-27a-404
(3)(c)(ii), the language that states "the Resource
Development Coordinating Committee," is repealed;
(b) Subsection 
23-14-21
(2)(c) is amended to read "(c) provide notification of proposed
sites for the transplant of species to local government officials having jurisdiction over areas
that may be affected by a transplant.";
(c) in Subsection 
23-14-21
(3), the language that states "and the Resource Development
Coordinating Committee" is repealed;
(d) in Subsection 
23-21-2.3
(1), the language that states "the Resource Development
Coordinating Committee created in Section 
63J-4-501
 and" is repealed;
(e) in Subsection 
23-21-2.3
(2), the language that states "the Resource Development
Coordinating Committee and" is repealed;
(f) Subsection 
63J-4-102
(1) is repealed and the remaining subsections are renumbered
accordingly;
(g) Subsections 
63J-4-401
(5)(a) and (c) are repealed;
(h) Subsection 
63J-4-401
(5)(b) is renumbered to Subsection 
63J-4-401
(5)(a) and the
word "and" is inserted immediately after the semicolon;
(i) Subsection 
63J-4-401
(5)(d) is renumbered to Subsection 
63J-4-401
(5)(b);
(j) Sections 
63J-4-501
, 
63J-4-502
, 
63J-4-503
, 
63J-4-504
, and 
63J-4-505
 are repealed;
and
(k) Subsection 
63J-4-603
(1)(e)(iv) is repealed and the remaining subsections are
renumbered accordingly.
(15) Subsection 
63J-1-602.1
(13), Nurse Home Visiting Restricted Account is repealed
July 1, 2026.
(16) Subsection 
63J-1-602.2
(4), referring to dedicated credits to the Utah Marriage
Commission, is repealed July 1, 2023.
(17) Subsection 
63J-1-602.2
(5), referring to the Trip Reduction Program, is repealed
July 1, 2022.
(18) (a) Subsection 
63J-1-602.1
[
(53)
]
(55)
, relating to the Utah Statewide Radio System
Restricted Account, is repealed July 1, 2022.
(b) When repealing Subsection 
63J-1-602.1
[
(53)
]
(55)
, the Office of Legislative
Research and General Counsel shall, in addition to the office's authority under Subsection
36-12-12
(3), make necessary changes to subsection numbering and cross references.
(19) Subsection 
63J-1-602.2
[
(23)
]
(24)
, related to the Utah Seismic Safety
Commission, is repealed January 1, 2025.
(20) Subsection 
63J-4-708
(1), in relation to the Talent Ready Utah Board, on January
1, 2023, is amended to read:
"(1) On or before October 1, the board shall provide an annual written report to the
Social Services Appropriations Subcommittee and the Economic Development and Workforce
Services Interim Committee.".
(21) In relation to the Utah Substance Use and Mental Health Advisory Council, on
January 1, 2023:
(a) Sections 
63M-7-301
, 
63M-7-302
, 
63M-7-303
, 
63M-7-304
, and 
63M-7-306
 are
repealed;
(b) Section 
63M-7-305
, the language that states "council" is replaced with
"commission";
(c) Subsection 
63M-7-305
(1) is repealed and replaced with:
"(1) "Commission" means the Commission on Criminal and Juvenile Justice."; and
(d) Subsection 
63M-7-305
(2) is repealed and replaced with:
"(2) The commission shall:
(a) provide ongoing oversight of the implementation, functions, and evaluation of the
Drug-Related Offenses Reform Act; and
(b) coordinate the implementation of Section 
77-18-1.1
 and related provisions in
Subsections 
77-18-1
(5)(b)(iii) and (iv).".
(22) The Crime Victim Reparations and Assistance Board, created in Section
63M-7-504
, is repealed July 1, 2027.
(23) Title 63M, Chapter 11, Utah Commission on Aging, is repealed July 1, 2021.
(24) Subsection 
63N-1-301
(4)(c), related to the Talent Ready Utah Board, is repealed
[
on
] January 1, 2023.
(25) Title 63N, Chapter 2, Part 2, Enterprise Zone Act, is repealed July 1, 2028.
(26) (a) Title 63N, Chapter 2, Part 4, Recycling Market Development Zone Act, is
repealed January 1, 2021.
(b) Subject to [
Subsection
] 
Subsections
 (26)(c) 
and (d)
, Sections 
59-7-610
 and
59-10-1007
 regarding tax credits for certain persons in recycling market development zones,
are repealed for taxable years beginning on or after January 1, 2021.
(c) A person may not claim a tax credit under Section 
59-7-610
 or 
59-10-1007
:
(i) for the purchase price of machinery or equipment described in Section 
59-7-610
 or
59-10-1007
, if the machinery or equipment is purchased on or after January 1, 2021; or
(ii) for an expenditure described in Subsection 
59-7-610
(1)(b) or 
59-10-1007
(1)(b), if
the expenditure is made on or after January 1, 2021.
(d)[
 Notwithstanding Subsections (26)(b) and (c), a
] 
A
 person may carry forward a tax
credit in accordance with Section 
59-7-610
 or 
59-10-1007
 if:
(i) the person is entitled to a tax credit under [
Section
] 
Subsection
59-7-610
(1)(a)
 or
59-10-1007
(1)(a)
; and
(ii) [
(A) for the purchase price of machinery or equipment described in Section
59-7-610
 or 
59-10-1007
,
] the machinery or equipment is purchased on or before December 31,
2020[
; or
]
.
[
(B) for an expenditure described in Subsection 
59-7-610
(1)(b) or 
59-10-1007
(1)(b),
the expenditure is made on or before December 31, 2020.
]
(27) Section 
63N-2-512
 is repealed [
on
] July 1, 2021.
(28) (a) Title 63N, Chapter 2, Part 6, Utah Small Business Jobs Act, is repealed
January 1, 2021.
(b) Section 
59-9-107
 regarding tax credits against premium taxes is repealed for
calendar years beginning on or after January 1, 2021.
(c) Notwithstanding Subsection (28)(b), an entity may carry forward a tax credit in
accordance with Section 
59-9-107
 if:
(i) the person is entitled to a tax credit under Section 
59-9-107
 on or before December
31, 2020; and
(ii) the qualified equity investment that is the basis of the tax credit is certified under
Section 
63N-2-603
 on or before December 31, 2023.
(29) Subsections 
63N-3-109
(2)(e) and 
63N-3-109
(2)(f)(i) are repealed July 1, 2023.
(30) Title 63N, Chapter 4, Part 4, Rural Employment Expansion Program, is repealed
July 1, 2023.
(31) Title 63N, Chapter 9, Part 2, Outdoor Recreational Infrastructure Grant Program,
is repealed January 1, 2023.
(32) In relation to the Pete Suazo Utah Athletic Commission, on January 1, 2021:
(a) Subsection 
63N-10-201
(2)(a) is amended to read:
"(2) (a) The governor shall appoint five commission members with the advice and
consent of the Senate.";
(b) Subsection 
63N-10-201
(2)(b), related to legislative appointments, is repealed;
(c) in Subsection 
63N-10-201
(3)(a), the language that states ", president, or speaker,
respectively," is repealed; and
(d) Subsection 
63N-10-201
(3)(d) is amended to read:
"(d) The governor may remove a commission member for any reason and replace the
commission member in accordance with this section.".
(33) In relation to the Talent Ready Utah Board, on January 1, 2023:
(a) Subsection 
9-22-102
(16) is repealed;
(b) in Subsection 
9-22-114
(2), the language that states "Talent Ready Utah," is
repealed; and
(c) in Subsection 
9-22-114
(5), the language that states "representatives of Talent Ready
Utah," is repealed.
(34) Title 63N, Chapter 12, Part 5, Talent Ready Utah Center, is repealed January 1,
2023.
Section 5. 
Retrospective operation.
This bill has retrospective operation for a taxable year beginning on or after January 1,
2019.