§ 59-7-608. Targeted jobs tax credit.

(1) As used in this section, "individual with a disability" means an individual who:

(a) has been receiving services:

(i) from a day-training program that is:

(A) for persons with disabilities; and

(B) certified by the Department of Human Services as a qualifying program; and

(ii) for at least six consecutive months prior to working for the employer claiming the tax credit under this section; or

(b) is eligible for services from the Division of Services for People with Disabilities at the time the individual begins working for the employer claiming the tax credit under this section.

(2) For taxable years beginning on or after January 1, 1995, there is allowed a nonrefundable tax credit against tax otherwise due under this chapter for an employer that:

(a) meets the unemployment and workers' compensation requirements of Title 34A, Utah Labor Code; and

(b) hires an individual with a disability who:

(i) works in this state for at least 180 days in a taxable year for that employer; and

(ii) is paid at least minimum wages by that employer.

(3) The tax credit shall be in an amount equal to:

(a) 10% of the gross wages earned in the first 180 days of employment by the individual with a disability from the employer seeking the tax credit; and

(b) 20% of the gross wages earned in the remaining taxable year by the individual with a disability from the employer seeking the tax credit.

(4) The tax credit which may be taken by an employer under this section shall be:

(a) limited to $3,000 per year per individual with a disability; and

(b) allowed only for the first two years the individual with a disability is employed by the employer.

(5) Any amount of tax credit remaining may be carried forward two taxable years following the taxable year of the employment eligible for the tax credit provided in this section.

(6)

(a) The Division of Services for People with Disabilities shall certify that an employer qualifies for the tax credit provided in this section on a form provided by the commission.

(b) The form described in Subsection (6)(a) shall include the name and Social Security number of the individual for whom the tax credit is claimed.

(c) The Division of Services for People with Disabilities shall provide the employer described in Subsection (6)(a) with a copy of the form described in this Subsection (6).

(d) The employer described in Subsection (6)(a) shall retain the form described in this Subsection (6).

Amended by Chapter 198, 2003 General Session