SB 315

 02-20 13:39  S.B. 315
1Tax Credit Modifications
                                        2026 GENERAL SESSION
                                              STATE OF UTAH
                                     Chief Sponsor: Brady Brammer
                                                House Sponsor:
2
3   LONG TITLE
4   General Description:
5This bill modifies income tax credits for donations to the Carson Smith Opportunity
6   Scholarship Program.
7   Highlighted Provisions:
8This bill:
9▸ allows claimants for the nonrefundable corporate and individual income tax credits for
10   donations to the Carson Smith Opportunity Scholarship Program to:
11●   claim any portion of the tax credit amount listed on the tax credit certificate for a
12   taxable year; and
13●   carry forward or carry back the amount of the tax credit that is unclaimed; and
14▸ makes technical changes.
15   Money Appropriated in this Bill:
16None
17   Other Special Clauses:
18This bill provides retrospective operation.
19   Utah Code Sections Affected:
20   AMENDS:
2159-7-625, as last amended by Laws of Utah 2024, Chapter 466
2259-10-1041, as last amended by Laws of Utah 2024, Chapter 466
23
                                                                                                            S.B. 315
24   Be it enacted by the Legislature of the state of Utah:
25Section 1. Section 59-7-625 is amended to read:
2659-7-625 . Nonrefundable tax credit for a donation to the Carson Smith
27   Opportunity Scholarship Program.
28   (1) A taxpayer that makes a donation to the Carson Smith Opportunity Scholarship Program
29established in Section 53E-7-402 may claim a nonrefundable tax credit equal to [100%]
30any portion of the amount stated on a tax credit certificate issued in accordance with
 S.B. 315  02-20 13:39
31      Section 53E-7-407.
32  (2) If [the] any amount of a tax credit listed on the tax credit certificate [exceeds a taxpayer's
33      liability under this chapter] is unclaimed for a taxable year, the taxpayer:
34      (a) may carry forward the unclaimed amount of the tax credit [exceeding the liability ]
35for a period that does not exceed the next three taxable years; and
36      (b) may carry back the unclaimed amount of the tax credit [that exceeds the taxpayer's
37tax liability ]to the previous taxable year.
38Section 2. Section 59-10-1041 is amended to read:
3959-10-1041 . Nonrefundable tax credit for a donation to the Carson Smith
40  Opportunity Scholarship Program.
41  (1) Except as provided in Subsection (3), a claimant, estate, or trust that makes a donation
42      to the Carson Smith Opportunity Scholarship Program established in Section 53E-7-402
43      may claim a nonrefundable tax credit equal to [100%] any portion of the amount stated
44      on a tax credit certificate issued in accordance with Section 53E-7-407.
45  (2) If [the] any amount of a tax credit listed on the tax credit certificate [exceeds a
46      claimant's, estate's, or trust's tax liability under this chapter ] is unclaimed for a taxable
47      year, the claimant, estate, or trust:
48      (a) may carry forward the unclaimed amount of the tax credit [exceeding the liability ]
49for a period that does not exceed the next three taxable years; and
50      (b) may carry back the unclaimed amount of the tax credit [that exceeds the claimant's,
51estate's, or trust's tax liability ]to the previous taxable year.
52  (3) A claimant, estate, or trust may not claim a credit described in Subsection (1) to the
53      extent the claimant, estate, or trust claims a donation described in Subsection (1) as an
54      itemized deduction on the claimant's, estate's, or trust's federal individual income tax
55      return for that taxable year.
56Section 3. Effective Date.
57  This bill takes effect on May 6, 2026.
58Section 4. Retrospective operation.
59  This bill has retrospective operation for a taxable year beginning on or after January 1,
60  2026.
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