Tax Credit Modifications

7
59-7-625
59-10-1041
0
Tax Credit Modifications
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Brady Brammer
House Sponsor:
LONG TITLE
General Description:
This bill modifies income tax credits for donations to the Carson Smith Opportunity
Scholarship Program.
Highlighted Provisions:
This bill:
allows claimants for the nonrefundable corporate and individual income tax credits for
donations to the Carson Smith Opportunity Scholarship Program to:
claim any portion of the tax credit amount listed on the tax credit certificate for a
taxable year; and
carry forward or carry back the amount of the tax credit that is unclaimed; and
makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides retrospective operation.
Utah Code Sections Affected:
AMENDS:
59-7-625
, as last amended by Laws of Utah 2024, Chapter 466
59-10-1041
, as last amended by Laws of Utah 2024, Chapter 466
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
59-7-625
is amended to read:
59-7-625
. Nonrefundable tax credit for a donation to the Carson Smith
Opportunity Scholarship Program.
(1)
A taxpayer that makes a donation to the Carson Smith Opportunity Scholarship Program
established in Section
53E-7-402
may claim a nonrefundable tax credit equal to
100%
any portion
of the amount stated on a tax credit certificate issued in accordance with
Section
53E-7-407
.
(2)
If
the
any
amount of a tax credit listed on the tax credit certificate
exceeds a taxpayer's
liability under this chapter
is unclaimed
for a taxable year, the taxpayer:
(a)
may carry forward the
unclaimed
amount of the tax credit
exceeding the liability
for a period that does not exceed the next three taxable years; and
(b)
may carry back the
unclaimed
amount of the tax credit
that exceeds the taxpayer's
tax liability
to the previous taxable year.
Section 2. Section
59-10-1041
is amended to read:
59-10-1041
. Nonrefundable tax credit for a donation to the Carson Smith
Opportunity Scholarship Program.
(1)
Except as provided in Subsection
(3)
, a claimant, estate, or trust that makes a donation
to the Carson Smith Opportunity Scholarship Program established in Section
53E-7-402

may claim a nonrefundable tax credit equal to
100%
any portion
of the amount stated
on a tax credit certificate issued in accordance with Section
53E-7-407
.
(2)
If
the
any
amount of a tax credit listed on the tax credit certificate
exceeds a
claimant's, estate's, or trust's tax liability under this chapter
is unclaimed
for a taxable
year, the claimant, estate, or trust:
(a)
may carry forward the
unclaimed
amount of the tax credit
exceeding the liability
for a period that does not exceed the next three taxable years; and
(b)
may carry back the
unclaimed
amount of the tax credit
that exceeds the claimant's,
estate's, or trust's tax liability
to the previous taxable year.
(3)
A claimant, estate, or trust may not claim a credit described in Subsection
(1)
to the
extent the claimant, estate, or trust claims a donation described in Subsection
(1)
as an
itemized deduction on the claimant's, estate's, or trust's federal individual income tax
return for that taxable year.
Section 3.
Effective Date.
This bill takes effect on
May 6, 2026
.
Section 4.
Retrospective operation.
This bill has retrospective operation for a taxable year beginning on or after
January 1,
2026
.
2-20-26 1:39 PM