§ 59-10-1002.1. Removal of tax credit from tax return and prohibition on claiming or carrying forward a tax credit -- Conditions for removal and prohibition on claiming or carrying forward a tax credit -- Commission reporting requirements.

(1) As used in this section, "tax return" means a tax return filed in accordance with this chapter.

(2) Beginning two taxable years after the requirements of Subsection (3) are met:

(a) the commission shall remove a tax credit allowed under this part from each tax return on which the tax credit appears; and

(b) a claimant, estate, or trust filing a tax return may not claim or carry forward the tax credit.

(3) The commission shall remove a tax credit allowed under this part from a tax return and a claimant, estate, or trust filing a tax return may not claim or carry forward the tax credit as provided in Subsection (2) if:

(a) the total amount of the tax credit claimed or carried forward by all claimants, estates, or trusts filing tax returns is less than $10,000 per year for three consecutive taxable years beginning on or after January 1, 2002; and

(b) less than 10 claimants, estates, and trusts per year for the three consecutive taxable years described in Subsection (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 after the taxable year in which the requirements of Subsection (3) are met:

(a) report to the Revenue and Taxation Interim Committee that in accordance with this section:

(i) the commission is required to remove a tax credit from each tax return on which the tax credit appears; and

(ii) a claimant, estate, or trust 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 tax credit that in accordance with this section:

(i) the commission is required to remove a tax credit from each tax return on which the tax credit appears; and

(ii) a claimant, estate, or trust filing a tax return may not claim or carry forward the tax credit.

Renumbered and Amended by Chapter 389, 2008 General Session