Tax Commission, Auditing

Section R865-6F-27

Order of Credits Applied Against Utah Corporate Franchise Tax Due Pursuant to Utah Code Ann. Sections 9-2-413, 59-6-102, 59-7-601 through 59-7-614, and 59-13-202

Notice of Proposed Rule

(Amendment)

DAR File No.: 33693
Filed: 06/01/2010 01:30:24 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The proposed amendment updates statutory citations and recognizes the addition of new corporate tax credits.

Summary of the rule or change:

The proposed amendment updates the statutory references to corporate tax credits to include renumbering of existing credits, and additional credits added since the rule was last updated.

State statutory or constitutional authorization for this rule:

• Section 59-6-102
• Section 59-13-301
• Title 63M, Chapter 1
• Section 59-13-202
• Title 59, Chapter 7

Anticipated cost or savings to:

the state budget:

None--All corporate tax credits have been authorized by the Legislature in legislation. In addition, this amendment reflects Tax Commission practice since the new credits were added.

local governments:

None--All corporate tax credits have been authorized by the Legislature in legislation. In addition, this amendment reflects Tax Commission practice since the new credits were added.

small businesses:

None--All corporate tax credits have been authorized by the Legislature in legislation. In addition, this amendment reflects Tax Commission practice since the new credits were added.

persons other than small businesses, businesses, or local governmental entities:

None--All corporate tax credits have been authorized by the Legislature in legislation. In addition, this amendment reflects Tax Commission practice since the new credits were added.

Compliance costs for affected persons:

None--The proposed amendment updates the rule to include all credits authorized by the Legislature and reflects Tax Commission practice.

Comments by the department head on the fiscal impact the rule may have on businesses:

None.

Michael J. Cragun, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Tax Commission
Auditing
210 N 1950 W
SALT LAKE CITY, UT 84134

Direct questions regarding this rule to:

• Michael Cragun at the above address, by phone at 801-297-3907, by FAX at 801-297-3919, or by Internet E-mail at mcragun@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

07/15/2010

This rule may become effective on:

07/22/2010

Authorized by:

R. Bruce Johnson, Tax Commission Chair

R865. Tax Commission, Auditing.

R865-6F. Franchise Tax.

R865-6F-27. Order of Credits Applied Against Utah Corporate Franchise Tax Due Pursuant to Utah Code Ann. Sections [9-2-413, ]59-6-102, [59-7-601 through 59-7-614, and ]59-13-202, and 59-13-301, and Title 59, Chapter 7, and Title 63M, Chapter 1.

[A.] Taxpayers shall deduct credits authorized by [Sections 9-2-413,]Section 59-6-102, [59-7-601 through 59-7-614, and]Section 59-13-202 , Section 59-13-301, Title 59, Chapter 7, and Title 63M, Chapter 1 against Utah corporate franchise tax due in the following order:

[1.](1) nonrefundable credits;

[2.](2) nonrefundable credits with a carryforward;

[3.](3) refundable credits.

 

KEY: taxation, franchises, historic preservation, trucking industries

Date of Enactment or Last Substantive Amendment: [ September 17, 2009 ] 2010

Notice of Continuation: March 8, 2007

Authorizing, and Implemented or Interpreted Law: 9-2-401 through 9-2-415; 59-6-102; 59-7-601 through 59-7-614; 59-7; 59-13-202; 59-13-301; 63-38f-401 through 63-38f-414 ; 63M-1