HB 252

01-14 12:34  H.B. 252
1Tariff Payment Tax Credit
  2026 GENERAL SESSION
  STATE OF UTAH
  Chief Sponsor: Andrew Stoddard
  Senate Sponsor:
2
3   LONG TITLE
4   General Description:
5This bill enacts an individual income tax credit for certain tariff payments.
6   Highlighted Provisions:
7This bill:
8▸ defines terms;
9▸ enacts a nonrefundable individual income tax credit for a business entity's payment of
10   tariffs, the costs of which have not been passed to customers, in an amount that
11   corresponds to the total amount of qualifying tariff payments made by the business
12   entity during the taxable year;
13▸ requires a qualifying claimant, before claiming a tax credit, to apply for and receive a
14   written certification from the Governor's Office of Economic Opportunity (office)
15   certifying the qualifying claimant's eligibility for the tax credit and the tax credit amount;
16▸ requires the office to annually report to the State Tax Commission on recipients of a
17   written certification for the tax credit;
18▸ authorizes the office to make rules for administering the certification requirements for the
19   tax credit; and
20▸ makes technical and conforming changes.
21   Money Appropriated in this Bill:
22None
23   Other Special Clauses:
  H.B. 252
24This bill provides retrospective operation.
25   Utah Code Sections Affected:
26   AMENDS:
2759-10-1002.2 (Effective 05/06/26) (Applies beginning 01/01/26), as last amended by
28Laws of Utah 2025, Chapter 407
2963N-1a-301 (Effective 05/06/26), as last amended by Laws of Utah 2025, Chapter 512
30   ENACTS:
H.B. 252  01-14 12:34
31      59-10-1049 (Effective 05/06/26) (Applies beginning 01/01/26), Utah Code Annotated
32      1953
33
34  Be it enacted by the Legislature of the state of Utah:
35Section 1. Section 59-10-1002.2 is amended to read:
3659-10-1002.2 (Effective 05/06/26) (Applies beginning 01/01/26). Apportionment
37  of tax credits.
38  (1) A nonresident individual or a part-year resident individual that claims a tax credit in
39      accordance with Section 59-10-1017, 59-10-1018, 59-10-1019, 59-10-1022, 59-10-1023,
40      59-10-1024, 59-10-1028, 59-10-1042, 59-10-1043, 59-10-1044, 59-10-1046, 59-10-1047, [
41      or ]59-10-1048, or 59-10-1049 may only claim an apportioned amount of the tax credit
42      equal to:
43      (a) for a nonresident individual, the product of:
44(i) the state income tax percentage for the nonresident individual; and
45(ii) the amount of the tax credit that the nonresident individual would have been
46allowed to claim but for the apportionment requirements of this section; or
47      (b) for a part-year resident individual, the product of:
48(i) the state income tax percentage for the part-year resident individual; and
49(ii) the amount of the tax credit that the part-year resident individual would have been
50allowed to claim but for the apportionment requirements of this section.
51  (2) A nonresident estate or trust that claims a tax credit in accordance with Section
52      59-10-1017, 59-10-1020, 59-10-1022, 59-10-1024, 59-10-1028, [or ]59-10-1048, or
53      59-10-1049 may only claim an apportioned amount of the tax credit equal to the product
54      of:
55      (a) the state income tax percentage for the nonresident estate or trust; and
56      (b) the amount of the tax credit that the nonresident estate or trust would have been
57allowed to claim but for the apportionment requirements of this section.
58Section 2. Section 59-10-1049 is enacted to read:
5959-10-1049 (Effective 05/06/26) (Applies beginning 01/01/26). Nonrefundable tax
60  credit for qualifying tariff payments -- Written certification from Governor's Office of
61  Economic Opportunity.
62  (1) As used in this section:
63      (a) "Office" means the Governor's Office of Economic Opportunity created in Section
6463N-1a-301.
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65(b) "Qualifying claimant" means a claimant, estate, or trust that:
66(i) is a business entity;
67(ii) makes a qualifying tariff payment during the taxable year; and
68(iii) receives a written certification from the office in accordance with Subsection (3).
69(c) "Qualifying tariff payment" means a tariff payment made by a business entity:
70(i) for an item of tangible personal property that the business entity:
71(A) holds for sale in the ordinary course of business; or
72(B) uses in the provision of the business entity's business activity; and
73(ii) for which the business entity does not pass the costs to customers.
74(d) "Tariff payment" means payment for a customs duty imposed under federal law on
75the importation of tangible personal property.
76   (2) A qualifying claimant may claim a nonrefundable tax credit in the amount listed on the
77written certification that the office issues to the qualifying claimant under Subsection (3).
78   (3)(a) A claimant, estate, or trust that seeks to claim a tax credit under this section shall
79apply to the office for a written certification certifying:
80(i) that the claimant, estate, or trust meets the requirements to receive a tax credit
81under this section; and
82(ii) subject to Subsection (4), the amount of the tax credit for which the claimant,
83estate, or trust qualifies to receive for the taxable year.
84(b) The office shall:
85(i) issue to a qualifying claimant a written certification on a form approved by the
86commission; and
87(ii) beginning in 2027, by no later than January 31 of each year, submit to the
88commission an electronic report that includes:
89(A) the name and identifying information of each qualifying claimant to which the
90office issued a written certification in the calendar year immediately before the
91calendar year in which the report is due;
92(B) for each qualifying claimant described in Subsection (3)(b)(ii)(A), the amount
93of the tax credit listed on the written certification; and
94(C) any other information requested by the commission.
95   (4)(a) The amount of the tax credit is equal to the product of:
96(i) the total amount of qualifying tariff payments made by the qualifying claimant
97during the taxable year; and
98(ii) the percentage listed in Subsection 59-10-104(2).
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99      (b) The office may authorize a tax credit with respect to a qualifying tariff payment only
100for the taxable year in which the qualifying claimant makes the qualifying tariff
101payment.
102  (5) A qualifying claimant that receives a written certification under this section shall retain
103      the written certification for the same time period a person is required to keep books and
104      records under Section 59-1-1406.
105  (6) A qualifying claimant may not carry forward or carry back the amount of a tax credit
106      under this section that exceeds the qualifying claimant's tax liability for the taxable year.
107  (7) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
108      office may make rules establishing:
109      (a) procedures and requirements for applying for and receiving a written certification
110under this section; and
111      (b) criteria and standards for determining whether a business entity has passed or not
112passed the costs of a tariff payment to customers, for purposes of certifying a tariff
113payment as a qualifying tariff payment.
114Section 3. Section 63N-1a-301 is amended to read:
11563N-1a-301 (Effective 05/06/26). Creation of office -- Responsibilities.
116  (1) There is created the Governor's Office of Economic Opportunity.
117  (2) The office is:
118      (a) responsible for creating and implementing the statewide economic development
119strategy that:
120(i) unifies and coordinates economic development efforts in the state;
121(ii) includes key performance indicators for long-term progress toward the state
122strategic goals;
123(iii) establishes reporting and accountability processes for the key performance
124indicators; and
125(iv) ensures the success of statewide economic development; and
126      (b) the industrial and business promotion authority of the state.
127  (3) The office shall:
128      (a) consistent with the statewide economic development strategy, coordinate and align
129into a single effort the activities of the economic opportunity agencies in the field of
130economic development;
131      (b) provide support and direction to economic opportunity agencies in establishing
132goals, metrics, and activities that align with the statewide economic development
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133strategy;
134      (c) administer and coordinate state and federal economic development grant programs;
135      (d) promote and encourage the economic, commercial, financial, industrial, agricultural,
136and civic welfare of the state;
137      (e) develop the statewide economic development strategy consistent with the state water
138policy described in Section 73-1-21, including the state's commitment to appropriate:
139(i) conservation;
140(ii) efficient and optimal use of water resources;
141(iii) infrastructure development and improvement;
142(iv) optimal agricultural use;
143(v) water quality;
144(vi) reasonable access to recreational activities;
145(vii) effective wastewater treatment; and
146(viii) protecting and restoring health ecosystems;
147      (f) at least once every five years, identify which industry or groups of industries shall be
148targeted for economic development in the state;
149      (g) promote and encourage the employment of workers in the state and the purchase of
150goods and services produced in the state by local businesses;
151      (h) act to create, develop, attract, and retain business, industry, and commerce in the
152state:
153(i) in accordance with the statewide economic development strategy; and
154(ii) subject to the restrictions in Section 11-41-103;
155      (i) act to enhance the state's economy;
156      (j) analyze the state's projected long-term population and economic growth and plan for
157the anticipated impacts of the projected growth in a manner that improves quality of
158life and is consistent with the statewide economic development strategy and state
159strategic goals;
160      (k) act to assist strategic industries that are likely to drive future economic growth;
161      (l) assist communities in the state in developing economic development capacity and
162coordination with other communities;
163      (m) develop strategies and plans to ensure comprehensive economic development efforts
164are targeted to the unique needs of rural areas of the state;
165      (n) identify areas of education and workforce development in the state that can be
166improved to support economic and business development;
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167      (o) develop core strategic priorities for the office, which may include:
168(i) enhancing statewide access to entrepreneurship opportunities and small business
169support;
170(ii) focusing industry recruitment and expansion of targeted industries;
171(iii) ensuring that in awarding competitive economic development incentives the
172office accurately measures the benefits and costs of the incentives; and
173(iv) assisting communities with technical support to aid those communities in
174improving economic development opportunities;
175      (p) submit an annual written report as described in Section 63N-1a-306; and
176      (q) perform other duties as provided by the Legislature.
177  (4) To perform the office's duties under this title, the office may:
178      (a) enter into a contract or agreement with, or make a grant to, a public or private entity,
179including a municipality, if the contract or agreement is not in violation of state
180statute or other applicable law;
181      (b) except as provided in Subsection (4)(c), receive and expend funds from a public or
182private source for any lawful purpose that is in the state's best interest; and
183      (c) solicit and accept a contribution of money, services, or facilities from a public or
184private donor, but may not use the contribution for publicizing the exclusive interest
185of the donor.
186  (5) Money received under Subsection (4)(c) shall be deposited into the General Fund as
187      dedicated credits of the office.
188  (6) The office shall certify a taxpayer's eligibility for a tax credit under Section 59-10-1049.
189Section 4. Effective Date.
190  This bill takes effect on May 6, 2026.
191Section 5. Retrospective operation.
192  The following sections have retrospective operation for a taxable year beginning on or
193  after January 1, 2026:
194  (1) Section 59-10-1002.2 (Effective 05/06/26) (Applies beginning 01/01/26); and
195  (2) Section 59-10-1049 (Effective 05/06/26) (Applies beginning 01/01/26).
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