59-7-615 - Removal of tax credit from tax form and prohibition on claiming or carrying forward a tax credit -- Conditions for removal and prohibition on claiming or carrying forward a tax credit -- Co
59-7-615. Removal of tax credit from tax form and prohibition on claiming orcarrying forward a tax credit -- Conditions for removal and prohibition on claiming orcarrying forward a tax credit -- Commission reporting requirements.
(1) As used in this section:
(a) "Tax credit" means a nonrefundable tax credit listed on a tax return.
(b) "Tax return" means:
(i) a corporate return as defined in Section 59-7-101 filed in accordance with thischapter; or
(ii) a tax return filed in accordance with Chapter 8, Gross Receipts Tax on CertainCorporations Not Required to Pay Corporate Franchise or Income Tax Act.
(2) Beginning two taxable years after the requirements of Subsection (3) are met:
(a) the commission shall remove a tax credit from each tax return on which the tax creditappears; and
(b) a person filing a tax return may not claim or carry forward the tax credit.
(3) The commission shall remove a tax credit from a tax return and a person filing a taxreturn may not claim or carry forward a tax credit as provided in Subsection (2) if:
(a) the total amount of the tax credit claimed or carried forward by all persons filing taxreturns is less than $10,000 per year for three consecutive taxable years beginning on or afterJanuary 1, 2002; and
(b) less than 10 persons per year for the three consecutive taxable years described inSubsection (3)(a), file a tax return claiming or carrying forward the tax credit.
(4) The commission shall, on or before the November interim meeting of the year afterthe taxable year in which the requirements of Subsection (3) are met:
(a) report to the Revenue and Taxation Interim Committee that in accordance with thissection:
(i) the commission is required to remove a tax credit from each tax return on which thetax credit appears; and
(ii) a person filing a tax return may not claim or carry forward the tax credit; and
(b) notify each state agency required by statute to assist in the administration of the taxcredit that in accordance with this section:
(i) the commission is required to remove a tax credit from each tax return on which thetax credit appears; and
(ii) a person filing a tax return may not claim or carry forward the tax credit.
Enacted by Chapter 62, 2002 General Session