Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 76 (2022GS)

Sponsor

Sen. McCay, D.

Final action

Governor Signed 3/23/2022

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• provides that a business applicant may claim the Targeted Business Income Tax Credit in an Enterprise Zone (the income tax credit) for a taxable year that begins before January 1, 2023;
• schedules the repeal of provisions of code that reference the income tax credit; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

TARGETED BUSINESS INCOME TAX CREDIT
AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Daniel McCay
House Sponsor: 
 Robert M. Spendlove
LONG TITLE
General Description:
This bill repeals the Targeted Business Income Tax Credit in an Enterprise Zone.
Highlighted Provisions:
This bill:
▸ provides that a business applicant may claim the Targeted Business Income Tax
Credit in an Enterprise Zone (the income tax credit) for a taxable year that begins
before January 1, 2023;
▸ schedules the repeal of provisions of code that reference the income tax credit; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
59-7-159
, as last amended by Laws of Utah 2021, Chapters 282 and 367
59-7-624
, as last amended by Laws of Utah 2021, Chapter 282
59-10-137
, as last amended by Laws of Utah 2021, Chapters 282 and 367
59-10-1112
, as last amended by Laws of Utah 2021, Chapter 282
63I-2-259
, as last amended by Laws of Utah 2021, Chapter 370
63I-2-263
, as last amended by Laws of Utah 2021, First Special Session, Chapter 4
63N-2-304
, as last amended by Laws of Utah 2019, Chapter 247
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
59-7-159
 is amended to read:
59-7-159.
Review of credits allowed under this chapter.
(1) As used in this section, "committee" means the Revenue and Taxation Interim
Committee.
(2) (a) The committee shall review the tax credits described in this chapter as provided
in Subsection (3) and make recommendations concerning whether the tax credits should be
continued, modified, or repealed.
(b) In conducting the review required under Subsection (2)(a), the committee shall:
(i) schedule time on at least one committee agenda to conduct the review;
(ii) invite state agencies, individuals, and organizations concerned with the tax credit
under review to provide testimony;
(iii) (A) invite the Governor's Office of Economic Opportunity to present a summary
and analysis of the information for each tax credit regarding which the Governor's Office of
Economic Opportunity is required to make a report under this chapter; and
(B) invite the Office of the Legislative Fiscal Analyst to present a summary and
analysis of the information for each tax credit regarding which the Office of the Legislative
Fiscal Analyst is required to make a report under this chapter;
(iv) ensure that the committee's recommendations described in this section include an
evaluation of:
(A) the cost of the tax credit to the state;
(B) the purpose and effectiveness of the tax credit; and
(C) the extent to which the state benefits from the tax credit; and
(v) undertake other review efforts as determined by the committee chairs or as
otherwise required by law.
(3) (a) On or before November 30, 2017, and every three years after 2017, the
committee shall conduct the review required under Subsection (2) of the tax credits allowed
under the following sections:
(i) Section 
59-7-601
;
(ii) Section 
59-7-607
;
(iii) Section 
59-7-612
;
(iv) Section 
59-7-614.1
; and
(v) Section 
59-7-614.5
.
(b) On or before November 30, 2018, and every three years after 2018, the committee
shall conduct the review required under Subsection (2) of the tax credits allowed under the
following sections:
(i) Section 
59-7-609
;
(ii) Section 
59-7-614.2
;
(iii) Section 
59-7-614.10
;
(iv) Section 
59-7-619
; 
and
(v) Section 
59-7-620
[
; and
]
.
[
(vi) Section 
59-7-624
.
]
(c) On or before November 30, 2019, and every three years after 2019, the committee
shall conduct the review required under Subsection (2) of the tax credits allowed under the
following sections:
(i) Section 
59-7-610
;
(ii) Section 
59-7-614
; and
(iii) Section 
59-7-614.7
.
(d) (i) In addition to the reviews described in this Subsection (3), the committee shall
conduct a review of a tax credit described in this chapter that is enacted on or after January 1,
2017.
(ii) The committee shall complete a review described in this Subsection (3)(d) three
years after the effective date of the tax credit and every three years after the initial review date.
Section 2. Section 
59-7-624
 is amended to read:
59-7-624.
Targeted business income tax credit.
(1) As used in this section, "business applicant" means the same as that term is defined
in Section 
63N-2-302
.
(2) [
A
] 
For a taxable year that begins before January 1, 2023, a
 business applicant that
is certified and issued a targeted business income tax eligibility certificate by the Governor's
Office of Economic Opportunity under Section 
63N-2-304
 may claim a refundable tax credit in
the amount specified on the targeted business income tax eligibility certificate.
(3) For a taxable year for which a business applicant claims a targeted business income
tax credit under this section, the business applicant may not claim or carry forward a tax credit
under Section 
59-7-610
, Section 
59-10-1007
, or Title 63N, Chapter 2, Part 2, Enterprise Zone
Act.
Section 3. Section 
59-10-137
 is amended to read:
59-10-137.
Review of credits allowed under this chapter.
(1) As used in this section, "committee" means the Revenue and Taxation Interim
Committee.
(2) (a) The committee shall review the tax credits described in this chapter as provided
in Subsection (3) and make recommendations concerning whether the tax credits should be
continued, modified, or repealed.
(b) In conducting the review required under Subsection (2)(a), the committee shall:
(i) schedule time on at least one committee agenda to conduct the review;
(ii) invite state agencies, individuals, and organizations concerned with the tax credit
under review to provide testimony;
(iii) (A) invite the Governor's Office of Economic Opportunity to present a summary
and analysis of the information for each tax credit regarding which the Governor's Office of
Economic Opportunity is required to make a report under this chapter; and
(B) invite the Office of the Legislative Fiscal Analyst to present a summary and
analysis of the information for each tax credit regarding which the Office of the Legislative
Fiscal Analyst is required to make a report under this chapter;
(iv) ensure that the committee's recommendations described in this section include an
evaluation of:
(A) the cost of the tax credit to the state;
(B) the purpose and effectiveness of the tax credit; and
(C) the extent to which the state benefits from the tax credit; and
(v) undertake other review efforts as determined by the committee chairs or as
otherwise required by law.
(3) (a) On or before November 30, 2017, and every three years after 2017, the
committee shall conduct the review required under Subsection (2) of the tax credits allowed
under the following sections:
(i) Section 
59-10-1004
;
(ii) Section 
59-10-1010
;
(iii) Section 
59-10-1015
;
(iv) Section 
59-10-1025
;
(v) Section 
59-10-1027
;
(vi) Section 
59-10-1031
;
(vii) Section 
59-10-1032
;
(viii) Section 
59-10-1035
;
(ix) Section 
59-10-1104
;
(x) Section 
59-10-1105
; and
(xi) Section 
59-10-1108
.
(b) On or before November 30, 2018, and every three years after 2018, the committee
shall conduct the review required under Subsection (2) of the tax credits allowed under the
following sections:
(i) Section 
59-10-1005
;
(ii) Section 
59-10-1006
;
(iii) Section 
59-10-1012
;
(iv) Section 
59-10-1022
;
(v) Section 
59-10-1023
;
(vi) Section 
59-10-1028
;
(vii) Section 
59-10-1034
;
(viii) Section 
59-10-1037
; 
and
(ix) Section 
59-10-1107
[
; and
]
.
[
(x) Section 
59-10-1112
.
]
(c) On or before November 30, 2019, and every three years after 2019, the committee
shall conduct the review required under Subsection (2) of the tax credits allowed under the
following sections:
(i) Section 
59-10-1007
;
(ii) Section 
59-10-1014
;
(iii) Section 
59-10-1017
;
(iv) Section 
59-10-1018
;
(v) Section 
59-10-1019
;
(vi) Section 
59-10-1024
;
(vii) Section 
59-10-1029
;
(viii) Section 
59-10-1036
;
(ix) Section 
59-10-1106
; and
(x) Section 
59-10-1111
.
(d) (i) In addition to the reviews described in this Subsection (3), the committee shall
conduct a review of a tax credit described in this chapter that is enacted on or after January 1,
2017.
(ii) The committee shall complete a review described in this Subsection (3)(d) three
years after the effective date of the tax credit and every three years after the initial review date.
Section 4. Section 
59-10-1112
 is amended to read:
59-10-1112.
Targeted business income tax credit.
(1) As used in this section, "business applicant" means the same as that term is defined
in Section 
63N-2-302
.
(2) [
A
] 
For a taxable year that begins before January 1, 2023, a
 business applicant that
is certified and issued a targeted business income tax eligibility certificate by the Governor's
Office of Economic Opportunity under Section 
63N-2-304
 may claim a refundable tax credit in
the amount specified on the targeted business income tax eligibility certificate.
(3) For a taxable year for which a business applicant claims a targeted business income
tax credit under this section, the business applicant may not claim or carry forward a tax credit
under Section 
59-7-610
, Section 
59-10-1007
, or Title 63N, Chapter 2, Part 2, Enterprise Zone
Act.
Section 5. Section 
63I-2-259
 is amended to read:
63I-2-259.
Repeal dates -- Title 59.
(1) In Section 
59-2-926
, the language that states "applicable" and "or 
53F-2-301.5
" is
repealed July 1, 2023.
[
(2) Subsection 
59-7-106
(1)(w) is repealed December 31, 2021.
]
[
(3) Section 
59-7-620
 is repealed December 31, 2021.
] 
[
(4) Subsection 
59-10-114
(2)(j) is repealed December 31, 2021.
]
(2) Subsection 
59-7-610
(8), relating to claiming a tax credit in the same taxable year as
the targeted business income tax credit, is repealed December 31, 2024.
(3) Subsection 
59-7-614.10
(5), relating to claiming a tax credit in the same taxable
year as the targeted business income tax credit, is repealed December 31, 2024.
(4) Section 
59-7-624
 is repealed December 31, 2024.
(5) Subsection 
59-10-210
(2)(b)(vi) is repealed December 31, 2024.
(6) Subsection 
59-10-1007
(8), relating to claiming a tax credit in the same taxable year
as the targeted business income tax credit, is repealed December 31, 2024.
(7) Subsection 
59-10-1037
(5), relating to claiming a tax credit in the same taxable year
as the targeted business income tax credit, is repealed December 31, 2024.
(8) Section 
59-10-1112
 is repealed December 31, 2024.
Section 6. Section 
63I-2-263
 is amended to read:
63I-2-263.
Repeal dates, Title 63A to Title 63N.
[
(1) Section 
63A-3-111
 is repealed June 30, 2021.
]
[
(2) Title 63C, Chapter 19, Higher Education Strategic Planning Commission is
repealed July 1, 2021.
]
[
(3)
] 
(1)
 Title 63C, Chapter 22, Digital Wellness, Citizenship, and Safe Technology
Commission is repealed July 1, 2023.
[
(4)
] 
(2)
 Section 
63G-1-502
 is repealed July 1, 2022.
[
(5)
] 
(3)
 The following sections regarding the World War II Memorial Commission are
repealed [
on
] July 1, 2022:
(a) Section 
63G-1-801
;
(b) Section 
63G-1-802
;
(c) Section 
63G-1-803
; and
(d) Section 
63G-1-804
.
[
(6)
] 
(4)
 Section 
63H-7a-303
 is repealed July 1, 2024.
[
(7) Subsection 
63J-1-206
(3)(c), relating to coronavirus, is repealed July 1, 2021.
]
[
(8)
] 
(5)
 Sections 
63M-7-213
 and 
63M-7-213.5
 are repealed [
on
] January 1, 2023.
[
(9)
] 
(6)
 Section 
63M-7-217
 is repealed [
on
] July 1, 2022.
[
(10)
] 
(7)
 Title 63N, Chapter 13, Part 3, Facilitating Public-private Partnerships Act, is
repealed January 1, 2024.
[
(11) Title 63N, Chapter 15, COVID-19 Economic Recovery Programs, is repealed
December 31, 2021.
]
(8) Subsection 
63N-2-213
(12)(a), relating to claiming a tax credit in the same taxable
year as the targeted business income tax credit, is repealed December 31, 2024.
(9) Title 63N, Chapter 2, Part 3, Targeted Business Income Tax Credit in an Enterprise
Zone, is repealed December 31, 2024.
Section 7. Section 
63N-2-304
 is amended to read:
63N-2-304.
Application for targeted business income tax credit.
(1) (a) [
A
] 
For a taxable year that begins before January 1, 2023, a
 business applicant
may apply to the office for a targeted business income tax credit eligibility certificate under this
part if the business applicant:
(i) is located in:
(A) an enterprise zone; and
(B) a county with a population of less than 25,000;
(ii) meets the requirements of Section 
63N-2-212
;
(iii) provides a community investment project within the enterprise zone; and
(iv) is not engaged in the following:
(A) construction;
(B) retail trade; or
(C) public utility activities.
(b) For a taxable year for which a business applicant claims a targeted business income
tax credit available under this part, the business applicant may not claim or carry forward a tax
credit available under Section 
59-7-610
, 
59-10-1007
, or 
63N-2-213
.
(2) (a) A business applicant seeking to claim a targeted business income tax credit
under this part shall submit an application to the office by no later than June 1 of the taxable
year in which the business applicant is seeking to claim the targeted business income tax credit.
(b) The application described in Subsection (2)(a) shall include:
(i) any documentation required by the office to demonstrate that the business applicant
meets the requirements of Subsection (1);
(ii) a plan developed by the business applicant that describes:
(A) if the community investment project includes significant new employment, the
projected number and anticipated wage level of the jobs that the business applicant plans to
create as the basis for qualifying for a targeted business income tax credit;
(B) if the community investment project includes significant new capital development,
the capital development the business applicant plans to make as the basis for qualifying for a
targeted business income tax credit;
(C) how the business applicant's plan coordinates with the goals of the enterprise zone
in which the business applicant is providing a community investment project;
(D) how the business applicant's plan coordinates with the overall economic
development goals of the county or municipality in which the business applicant is providing a
community investment project;
(E) any matching funds that will be used for the community investment project;
(F) how any targeted business income tax credit incentives that were awarded in a
previous year have been used for the community investment project by the business applicant;
and
(G) the requested amount of the targeted business income tax credit; and
(iii) any additional information required by the office.
(3) (a) The office shall:
(i) evaluate an application filed under Subsection (2);
(ii) determine whether the business applicant is potentially eligible for a targeted
business income tax credit; and
(iii) if the business applicant is potentially eligible for a targeted business income tax
credit, determine performance benchmarks and the deadline for meeting those benchmarks that
the business applicant must achieve before the office awards a targeted business income tax
credit to the business applicant.
(b) If the office determines that the business applicant is potentially eligible for a
targeted business income tax credit, the office shall:
(i) notify the business applicant that the business applicant is eligible for a targeted
business income tax credit if the business applicant meets the performance benchmarks by the
deadline as determined by the office as described in Subsection (3)(a)(iii);
(ii) notify the business applicant of the potential amount of the targeted business
income tax credit that may be awarded to the business applicant, which amount may be no
more than $100,000 for the business applicant in a taxable year; and
(iii) monitor a business applicant to ensure compliance with this section and to
measure the business applicant's progress in meeting performance benchmarks.
(c) If the business applicant provides evidence to the office, in a form prescribed by the
office, that the business applicant has achieved the performance benchmarks by the deadline as
determined by the office as described in Subsection (3)(a)(iii), the office shall:
(i) certify that the business applicant is eligible for a targeted business income tax
credit;
(ii) issue a targeted business income tax credit eligibility certificate to the business
applicant in accordance with:
(A) for a business applicant that files a return under Title 59, Chapter 7, Corporate
Franchise and Income Taxes, Section 
59-7-624
; or
(B) for a business applicant that files a return under Title 59, Chapter 10, Individual
Income Tax Act, Section 
59-10-1112
; and
(iii) provide a duplicate copy of the targeted business income tax credit eligibility
certificate to the State Tax Commission.
(4) The total amount of the targeted business income tax credit eligibility certificates
that the office issues under this part for all business applicants may not exceed $300,000 in any
fiscal year.
(5) (a) A business applicant shall retain the targeted business income tax credit
eligibility certificate as issued under Subsection (3) for the same time period that a person is
required to keep books and records under Section 
59-1-1406
.
(b) The office may audit a business applicant to ensure:
(i) eligibility for a targeted business income tax credit; and
(ii) compliance with this section.