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S.B. 171
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INDIVIDUAL INCOME TAX AND CORPORATE FRANCHISE
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AND INCOME TAX CREDITS - CONTRIBUTIONS TO
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PROVIDERS OF SERVICES TO PERSONS WITH DISABILITIES
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2000 GENERAL SESSION
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STATE OF UTAH
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Sponsor: Robert F. Montgomery
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AN ACT RELATING TO CORPORATE FRANCHISE AND INCOME TAXES AND THE
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INDIVIDUAL INCOME TAX ACT; MODIFYING AND INCREASING INDIVIDUAL INCOME
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TAX AND CORPORATE FRANCHISE AND INCOME TAX CREDITS FOR CASH
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CONTRIBUTIONS TO PRIVATE NONPROFIT PROVIDERS OF SERVICES TO PERSONS
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WITH DISABILITIES; AND MAKING TECHNICAL CHANGES.
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This act affects sections of Utah Code Annotated 1953 as follows:
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AMENDS:
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59-7-602, as enacted by Chapter 169, Laws of Utah 1993
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59-10-108, as last amended by Chapter 183, Laws of Utah 1990
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
59-7-602
is amended to read:
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59-7-602. Credit for cash contributions to private nonprofit providers.
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(1) As used in this section, "private nonprofit provider" means an organization that:
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(a) is exempt from federal income taxation under Section 501(c)(3), Internal Revenue
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Code;
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(b) is:
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(i) a human services licensee as defined in Section
62A-2-101
; and
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(ii) licensed by the Department of Human Services under Title 62A, Chapter 2, Licensure
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of Programs and Facilities; and
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(c) provides services and supports to a person who is eligible to receive services and
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supports under Title 62A, Chapter 5, Services to People with Disabilities.
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[(1)] (2) (a) For [tax] taxable years beginning on or after January 1, [1983, and thereafter]
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2001, in computing the tax due [the state of Utah pursuant to] under Section
59-7-104
, [there shall
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be a tax] a taxpayer may claim a nonrefundable credit [allowed] as provided in this section for cash
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contributions made [within] during the taxable year to [nonprofit rehabilitation sheltered workshop
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facilities for the disabled operating in Utah which are certified by the Department of Human
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Services as a qualifying facility. The allowable credit is] a private nonprofit provider.
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(b) (i) Except as provided in Subsection (2)(b)(ii), the credit provided for in Subsection
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(2)(a) is in an amount equal to 50% of the aggregate amount of [the] a cash [contributions to
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qualifying rehabilitation facilities, but in no case shall the credit allowed exceed $1,000]
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contribution to a private nonprofit provider.
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(ii) Notwithstanding Subsection (2)(b)(i), the total amount of credit a taxpayer may claim
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for a taxable year may not exceed $2,000.
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[(2)] (3) If a taxpayer has subtracted an amount [for] of a cash [contributions] contribution
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to a [sheltered workshop when] private nonprofit provider in determining federal taxable income,
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that amount shall be added [back] to unadjusted income under Section
59-7-105
before a taxpayer
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may claim a credit [may be taken] under this section.
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(4) A taxpayer may not carry forward or carry back a credit under this section.
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Section 2.
Section
59-10-108
is amended to read:
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59-10-108. Credit for cash contributions to private nonprofit providers.
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(1) As used in this section, "private nonprofit provider" means an organization that:
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(a) is exempt from federal income taxation under Section 501(c)(3), Internal Revenue
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Code;
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(b) is:
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(i) a human services licensee as defined in Section
62A-2-101
; and
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(ii) licensed by the Department of Human Services under Title 62A, Chapter 2, Licensure
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of Programs and Facilities; and
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(c) provides services and supports to a person who is eligible to receive services and
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supports under Title 62A, Chapter 5, Services to People with Disabilities.
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(2) (a) For [tax] taxable years beginning on or after January 1, [1983, and thereafter] 2001,
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in computing the tax due [the state of Utah pursuant to] under Section
59-10-104
[there shall be
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a tax], a taxpayer may claim a nonrefundable credit [allowed] as provided in this section for cash
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contributions made [within] during the taxable year to [nonprofit rehabilitation sheltered workshop
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facilities for the handicapped operating in Utah which are certified by the Department of Human
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Services as a qualifying facility . The allowable credit is] a private nonprofit provider.
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(b) (i) Except as provided in Subsection (2)(b)(ii), the credit provided for in Subsection
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(2)(a) is in an amount equal to 50% of the aggregate amount of [the] a cash [contributions to the
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qualifying rehabilitation facilities, but in no case shall the allowed credit exceed $200. The
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amount of] contribution to a private nonprofit provider.
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(ii) Notwithstanding Subsection (2)(b)(i), the total amount of credit a taxpayer may claim
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for a taxable year may not exceed $500.
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(3) A cash contribution claimed as a [tax] credit [pursuant to] under this section may not
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also be claimed as a charitable deduction in determining [net] state taxable income.
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(4) A taxpayer may not carry forward or carry back a credit under this section.
Legislative Review Note
as of 2-8-00 3:34 PM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.