Note: When opening the Excel file, if you get a notice to update the links, click "no". Data with less than 10 participants cannot be shown, so only select credits for select years are chosen from a larger spreadsheet.
The Utah Legislature has authorized a variety of nonrefundable tax credits to, for example, promote cleaner air, encourage economic development and aid disabled Utahns. Nonrefundable credits can bring your tax liability to zero, but cannot result in a refund. Following is a history of these credits.
This Individual Income Tax credit is only for fuel purchased in Utah to operate stationary farm machinery used solely for commercial nonhighway agricultural use that was taxed at the time of purchase. Activities that would NOT qualify for this credit include, but are not limited to, the following: Golf courses, horse racing, boat operations, highway seeding, vehicles registered for highway use, hobbies, farming for personal use, etc.
This is a nonrefundable tax credit on Individual Income Tax and Corporate Franchise tax returns of 10 percent (up to $50) of the total of the purchase cost and installation services cost of EPA certified pellet burning stoves, high mass wood stoves, solid fuel burning devices, and natural gas or propane free standing fireplaces or inserts. For detailed instructions regarding the eligibility of a particular stove or fireplace, please see Form TC-40F, "Clean Fuel Alternative Tax Credit," or contact the Division of Air Quality, Department of Environmental Quality, 1950 W North Temple, SLC, UT 84114-4820; telephone (801) 536-4000. Credit is claimed using Form TC-40F, showing the amount of credit claimed and the Division of Air Quality certification.
This is a nonrefundable tax credit on Individual Income Tax and Corporate Franchise tax returns of:
For detailed instructions regarding the eligibility of a particular vehicle for this tax credit, please see Form TC-40V, "Clean Fuel Vehicle Tax Credit," or contact the Division of Air Quality, Department of Environmental Quality, 1950 W North Temple, SLC, UT 84114-4820; telephone (801) 536-4000. Credit is claimed using Form TC-40V, showing the credit amount and the Division of Air Quality certification.
To qualify for the Individual Income Tax energy credit, you must have installed an active or passive solar system, a wind system, a hydroenergy system, or a biomass system during the tax period. Insulation, storm windows, storm doors and other energy saving devices not mentioned above do not qualify for this credit.
The credit for residential units is 25 percent of the cost of the energy system, not to exceed $2,000 per residential unit. The credit for commercial units is 10 percent of the cost of the system, not to exceed $50,000 per commercial unit. You must attach a copy of form TC-40E, "Utah Energy Tax Credit for Energy Systems Installation" showing your computation, and the approval seal from the Utah Energy Office that the system has been installed and is a viable system for saving energy.
The energy systems installation credit is nonrefundable. The amount of the qualifying credit that may be claimed is limited to the amount of Utah income tax due. Any unused credit may be carried forward for up to four years to offset any future year's tax liability.
This is a nonrefundable tax credit on Individual Income Tax and Corporate Franchise tax returns. All enterprise zone credits will be subject to audit and will require verification upon request.
Tax incentives described herein are available only to business firms meeting the following qualifications:
The following state tax credits are applicable to qualifying businesses in an enterprise zone.
A business claiming a credit under paragraphs 1- 4, may claim a credit for 30 full-time employee positions or less in each of its taxable years.
A business may claim an additional credit for a full-time employee position under paragraphs 1 - 4 above if:
Tax credits not claimed by a business on its state income tax return within three years are forfeited. (Utah Code 9-2-401 through 9-2-414)
When Enterprise Zone credits are taken based on ownership in a partnership or S-corporation, calculated credits are allocated based on respective percentage of ownership. For more information call the Department of Community and Economic Development, 324 S State Street, SLC, UT 84111, telephone (801) 538-8782.
A nonrefundable tax credit is allowed on the corporate franchise return for 25 percent of the fair market value of high technology equipment contributions to public education, not to exceed the basis of the property contributed. Credit claimed here cannot be claimed as a charitable contribution deduction under Utah Code Ann. Section 59-7-106(10).
This a nonrefundable Individual Income Tax credit for employers based on amounts paid to individuals with disabilities hired by the employer.
The credit applies only to amounts paid to individuals with disabilities. Individuals with disabilities are defined as individuals who: (1) have been receiving services from a day-training program for persons with disabilities, which is certified by the Department of Human Services as a qualifying program for at least six consecutive months prior to working for the employer claiming the tax credit; or (2) are eligible for services from the Division of Services for People with Disabilities at the time the individuals begin working for the employer claiming the tax credit.
An employer qualifies for this credit only if the individual with a disability: (1) works in this state for at least 6 months in a taxable year for that employer; and (2) is paid at least minimum wage by that employer.
The credit authorized by law shall be in an amount equal to 10 percent of the gross wages earned in the first six months of employment by the individual with a disability, and 20 percent of the gross wages earned in the remaining taxable year by the individual with a disability.
The credit taken by an employer is limited to $3,000 per year per individual with a disability. The credit is allowed only for the first two years the individual with a disability is employed by the employer.
Credit amounts greater than the Utah tax liability in the tax year in which the credit is earned may be carried forward to each of the following two tax years. Carryforward credits shall be applied against the tax liability of any year before the application of any credits earned in the tax year.
Employers claiming the credit must use Form TC-40HD, "Tax Credit for Employers Who Hire Persons with Disabilities," showing the Division of Services for People with Disabilities certification, and the amount they are claiming.
This is a nonrefundable tax credit on Individual Income Tax and Corporate Franchise tax returns of 20 percent of qualified rehabilitation expenditures costing more than $10,000 incurred in connection with any residential certified historic building. Unused credits may be carried forward five years as a credit against Utah tax due. Enter the amount on line 34d. For detailed information regarding the eligibility of a rehabilitation project for this tax credit, please contact the State Historic Preservation Office, 300 Rio Grande, SLC, UT 84101; telephone (801) 533-3563. Credit is claimed using TC-40H, Historic Preservation Tax Credit, showing the amount of credit claimed and the State Historic Preservation Office certification.
This is a nonrefundable Individual Income Tax credit in an amount determined by the Utah Housing Finance Agency, for any housing sponsor that has received an allocation of the federal low-income housing tax credit and any applicant for an allocation of the federal low-income housing tax credit. Unused credits may be carried back three years or carried forward five years. For detailed instructions regarding the eligibility of a building for this tax credit, please contact the Utah Housing Finance Agency, 177 E 100 S, SLC, UT, telephone (801) 521-6950. Credit is claimed using Form TC-40TCAC, "Utah Low-Income Housing Tax Credit Allocation Certification," and TC-40LI, "Summary of Utah Low-Income Housing Tax Credit."
Cash contributions made on Individual Income Tax or Corporate Franchise tax returns within the tax year to a nonprofit rehabilitation sheltered workshop facility for the handicapped operating in Utah and certified by the Department of Human Services as a qualifying facility, are eligible for a credit against Utah income taxes. Check with the workshop to make sure they are a qualified sheltered workshop. The credit is equal to 50 percent of the total of cash contributions, not to exceed $200.
Contributions claimed as a tax credit under this section may not also be claimed as a charitable deduction in determining net taxable income (Utah Code 59-10-108).
For tax years beginning January 1, 1996 and ending December 31, 2000, the Utah Legislature has authorized a nonrefundable tax credit to individuals and corporations in a recycling market development zone as defined in Utah Code 9-2-1602. The credit consists of:
(a) 5 percent of the purchase price paid during the taxable year for machinery and equipment used directly in commercial composting, or manufacturing facilities or plant units that manufacture recycled items or reduce postconsumer waste material; and
(b) 20 percent of net expenditures, up to a maximum credit of $2,000, 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.
The total credit allowed may not exceed 40 percent of the entity's Utah tax liability. Any amount of the tax credit attributed to the purchase of machinery and equipment that exceed the current year tax liability, may be carried FORWARD three years as a credit against Utah tax due.
For detailed instructions regarding the eligibility of particular equipment and expenses for this tax credit, please see form TC-40R, "Recycling Market Development Zone Tax Credit," or contact the Department of Community and Economic Development, 324 So. State St., SLC, UT 84111, (801) 538-8872. Credit is claimed using form TC-40R, showing the Department of Community and Economic Development certification for machinery and equipment purchases and the amount you are claiming as a credit.
For taxable years beginning on or after January 1, 1993, there is allowed a Corporate Franchise Tax credit for an amount equal to $1 per ton for each ton of Utah steam coal sold from a permitted mine by the taxpayer to a purchaser outside of the United States in excess of the number of tons of Utah steam coal sold from a permitted mine by the taxpayer to a purchaser outside of the United States in the taxable year beginning on or after January 1, 1992, but before December 31, 1992. Unused credits may be carried forward 15 years. This credit is repealed effectively for tax years beginning on or after January 1, 2002.
This is a nonrefundable Individual Income Tax credit of 25 percent, up to $100, of the cost paid by the taxpayer for tutoring a disabled dependent. A "disabled dependent" is defined as a person who:
Tutoring does not include:
For more information regarding the tutoring tax credit for disabled dependents, please contact the Utah State Board of Education at (801) 538-7700.
