SB 315 modifies Utah's tax credit rules for donations to the Carson Smith Opportunity Scholarship Program, directly affecting individuals and businesses that donate to this scholarship initiative. The bill allows donors to claim any portion of their tax credit amount (instead of requiring full use) and permits carrying forward or back unused credit amounts for up to three years. This change makes the tax credit more flexible for donors who cannot fully utilize it in a single tax year. The bill takes effect retroactively for taxable years beginning January 1, 2026, and applies to existing tax credit certificates issued under the program.
SB 279 creates a 50% nonrefundable tax credit for property owners within one mile of designated "homeless services campuses" (facilities offering emergency shelter, mental health services, and support in one location, excluding correctional centers or microshelters). It directly affects qualifying property owners who receive annual tax notices for their land near these campuses. The credit equals half the property taxes paid in the year the tax notice is issued, applied to the owner’s state tax return. This policy aims to offset costs for neighbors of these facilities through a direct tax reduction.
SB 112 modifies Utah's Exemptions Act to protect certain federal tax refunds from being seized by creditors. It specifically allows individuals with unsecured debt to keep the full amount of federal income tax refunds linked to the Earned Income Tax Credit (EITC) or Child Tax Credit, whether the refund is refundable or reduces their tax liability. This change directly affects low-income Utah residents who rely on these credits, ensuring these refunds remain exempt from collection efforts. The bill makes no other policy changes beyond this targeted exemption and technical updates to existing law.
HB 252 creates a nonrefundable individual income tax credit for Utah businesses that pay tariffs on imported goods but do not pass those costs to customers. It applies to businesses importing items held for sale or used in operations, such as manufacturers or retailers. To claim the credit, businesses must first obtain written certification from the Governor's Office of Economic Opportunity verifying their eligibility and the credit amount, which equals the total qualifying tariff payments multiplied by a set percentage. The credit is limited to the business's tax liability for the year and cannot be carried forward, with certification requirements effective retroactively from January 1, 2026.
HB 190 expands Utah's tax credit for employers providing child care by increasing the credit rate for small businesses to 30% (from 10%) of eligible child care costs and allowing credits for off-site child care facilities employers don't own. It removes a previous requirement that employers must have claimed a construction-related credit to qualify for the child care credit. The bill directly affects Utah employers who provide child care for employees, particularly small businesses meeting IRS Section 45F criteria. The changes apply retroactively and make no new state funding appropriations.
HB 159 creates a nonrefundable income tax credit for Utah residents who volunteer as first responders. It provides $250 for 100-199 volunteer hours or $500 for 200+ hours per year, directly benefiting certified first responder volunteers who meet the hour requirements. To claim the credit, volunteers must obtain a certification from their agency documenting their hours and retain this record for tax purposes. The credit applies retroactively to taxable years beginning January 1, 2026, and takes effect May 6, 2026. This policy incentivizes community service by reducing tax liability for qualifying volunteers.
HB 210 modifies Utah's Individual Income Tax Act to reduce tax burdens for certain filers. It removes marriage penalties by setting half the income phaseout limits for single, head of household, and married filing separately filers compared to joint filers, and creates a new nonrefundable tax credit for married filers. The bill directly affects Utah taxpayers with these filing statuses, particularly married couples who file separately. It applies retroactively to prior tax years, requires no new state funding, and amends multiple tax code sections to implement these changes.
HB 290 expands Utah's child tax credit by raising income thresholds where the credit begins to phase out. It increases the phaseout limits to $30,500 for married filing separately, $49,000 for single/head of household, and $61,000 for joint filers (up from $27,000, $43,000, and $54,000, respectively). This change directly affects Utah taxpayers with qualifying children who previously saw their credit reduced due to higher income. The bill maintains the $1,000-per-child credit amount but allows more families to claim the full credit, with retrospective effect for 2026 tax years. The change takes effect May 6, 2026, and requires no new state funding.
SB 16 amends the process for agricultural businesses to claim tax refunds on motor fuel used for nonhighway farming activities. It requires claimants to retain original invoices as proof and limits each business to one annual refund claim. The bill specifies that refunds are processed only after commission approval of the claim. This directly affects farmers and agricultural operations purchasing fuel for off-highway use, streamlining their existing refund procedure without creating new tax credits.
