Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 161 First Substitute (2021GS)

Sponsor

Rep. Pierucci, C.

Final action

House/ filed 3/5/2021

Outcome

Failed / filed without passage

Summary

What it does

• This bill:
• defines terms;
• creates a nonrefundable income tax credit for military retirement pay; and
• provides for apportionment of the income tax credit.

Every vote on this bill

Bill text

MILITARY RETIREMENT TAX AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Candice B. Pierucci
Senate Sponsor: 
 Wayne A. Harper
LONG TITLE
General Description:
This bill creates a nonrefundable income tax credit for military retirement pay.
Highlighted Provisions:
This bill:
▸ defines terms;
▸ creates a nonrefundable income tax credit for military retirement pay; and
▸ provides for apportionment of the income tax credit.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides retrospective operation.
Utah Code Sections Affected:
AMENDS:
59-10-1002.2
, as last amended by Laws of Utah 2016, Chapter 263
ENACTS:
59-10-1042
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
59-10-1002.2
 is amended to read:
59-10-1002.2.
Apportionment of tax credits.
(1) A nonresident individual or a part-year resident individual that claims a tax credit
in accordance with Section 
59-10-1017
, 
59-10-1018
, 
59-10-1019
, 
59-10-1022
, 
59-10-1023
,
59-10-1024
, [
or
] 
59-10-1028
, or 
59-10-1042
 may only claim an apportioned amount of the tax
credit equal to:
(a) for a nonresident individual, the product of:
(i) the state income tax percentage for the nonresident individual; and
(ii) the amount of the tax credit that the nonresident individual would have been
allowed to claim but for the apportionment requirements of this section; or
(b) for a part-year resident individual, the product of:
(i) the state income tax percentage for the part-year resident individual; and
(ii) the amount of the tax credit that the part-year resident individual would have been
allowed to claim but for the apportionment requirements of this section.
(2) A nonresident estate or trust that claims a tax credit in accordance with Section
59-10-1017
, 
59-10-1020
, 
59-10-1022
, 
59-10-1024
, or 
59-10-1028
 may only claim an
apportioned amount of the tax credit equal to the product of:
(a) the state income tax percentage for the nonresident estate or trust; and
(b) the amount of the tax credit that the nonresident estate or trust would have been
allowed to claim but for the apportionment requirements of this section.
Section 2. Section 
59-10-1042
 is enacted to read:
 59-10-1042.
Nonrefundable income tax credit for military retirement pay.
(1) As used in this section:
(a) (i) "Military retirement pay" means retirement pay, including survivor benefits, that
relates to service in the armed forces, including service in the Reserves or the National Guard.
(ii) "Military retirement pay" does not include:
(A) social security income; or
(B) 401(k) or IRA distributions.
(b) "Survivor benefits" means the retired pay portion of the benefits described in 10
U.S.C. Secs. 1447 through 1455.
(2) Except as provided in Section 
59-10-1002.2
, a claimant who receives military
retirement pay may claim a nonrefundable tax credit against taxes equal to the product of:
(a) the percentage listed in Subsection 
59-10-104
(2); and
(b) the amount of military retirement income that is included in adjusted gross income
on the claimant's federal income tax return for the taxable year.
(3) A claimant may not carry forward or carry back the amount of the tax credit that
exceeds the claimant's tax liability for the taxable year.
Section 3. 
Retrospective operation.
This bill has retrospective operation for a taxable year beginning on or after January 1,
2021.