LEGISLATIVE GENERAL COUNSEL S.B. 142
6 Approved for Filing: A.V. Arthur 6 1st Sub. (Green)
6 02-06-24 2:30 PM 6
Senator Stephanie Pitcher proposes the following substitute bill:
1 LAWN EQUIPMENT TAX CREDIT AMENDMENTS
2 2024 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Stephanie Pitcher
5 House Sponsor: ____________
6
7 LONG TITLE
8 General Description:
9 This bill creates a nonrefundable income tax credit for sales of new, electric-powered
10 lawn equipment.
11 Highlighted Provisions:
12 This bill:
13 < defines terms;
14 < enacts a nonrefundable income tax credit for sellers that sell new, electric-powered
15 lawn equipment at a discount to a commercial purchaser;
16 < schedules the repeal of the tax credit but requires legislative review before repeal;
17 and
18 < makes technical and conforming changes.
19 Money Appropriated in this Bill:
20 None 1st Sub. S.B. 142
21 Other Special Clauses:
22 This bill provides retrospective operation.
23 Utah Code Sections Affected:
24 AMENDS:
25 63I-1-259, as last amended by Laws of Utah 2023, Chapter 52
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1st Sub. (Green) S.B. 142 02-06-24 2:30 PM
26 ENACTS:
27 59-7-627, Utah Code Annotated 1953
28 59-10-1048, Utah Code Annotated 1953
29
30 Be it enacted by the Legislature of the state of Utah:
31 Section 1. Section 59-7-627 is enacted to read:
32 59-7-627. Nonrefundable tax credit for seller of electric lawn equipment.
33 (1) As used in this section:
34 (a) "Commercial purchaser" means a person that:
35 (i) uses lawn equipment primarily for the operation of a business; and
36 (ii) is incorporated in a county within the state that is in a nonattainment area status as
37 classified by the EPA's 8-Hour Ozone (2015) National Ambient Air Quality Standards.
38 (b) "Discount" means the subtraction of 30% or more off of the purchase price for
39 which a seller normally offers an item of lawn equipment for purchase to a commercial
40 purchaser.
41 (c) "Lawn equipment" means a chainsaw, an edger, a lawn mower, a leaf blower, a leaf
42 vacuum, a trimmer, or a snowblower.
43 (d) "Purchase price" means the same as that term is defined in Section 59-12-102.
44 (e) "Retail sale" means the same as that term is defined in Section 59-12-102.
45 (2) For a taxable year beginning before January 1, 2027, a taxpayer may claim a
46 nonrefundable tax credit equal to 30% of the purchase price for all retail sales of new,
47 electric-powered lawn equipment that the taxpayer sold at a discount to a commercial
48 purchaser during the taxable year.
49 (3) (a) A taxpayer may carry forward, to the next five taxable years, the amount of the
50 tax credit that exceeds the taxpayer's tax liability for the taxable year.
51 (b) A taxpayer may not carry back the amount of the tax credit that exceeds the
52 taxpayer's tax liability for the taxable year.
53 (4) Lawn equipment is sold within the state if the taxpayer sources the sale to the state
54 in accordance with Sections 59-12-211 through 59-12-215.
55 Section 2. Section 59-10-1048 is enacted to read:
56 59-10-1048. Nonrefundable tax credit for seller of electric lawn equipment.
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02-06-24 2:30 PM 1st Sub. (Green) S.B. 142
57 (1) As used in this section:
58 (a) "Commercial purchaser" means the same as that term is defined in Section
59 59-7-627.
60 (b) "Discount" means the same as that term is defined in Section 59-7-627.
61 (c) "Lawn equipment" means the same as that term is defined in Section 59-7-627.
62 (d) "Purchase price" means the same as that term is defined in Section 59-12-102.
63 (e) "Retail sale" means the same as that term is defined in Section 59-12-102.
64 (2) For a taxable year beginning before January 1, 2027, a claimant may claim a
65 nonrefundable tax credit equal to 30% of the purchase price for all retail sales of new,
66 electric-powered lawn equipment that the claimant sold at a discount to a commercial
67 purchaser during the taxable year.
68 (3) (a) A claimant may carry forward, to the next five taxable years, the amount of the
69 tax credit that exceeds the claimant's tax liability for the taxable year.
70 (b) A claimant may not carry back the amount of the tax credit that exceeds the
71 claimant's tax liability for the taxable year.
72 (4) Lawn equipment is sold within the state if the claimant sources the sale to the state
73 in accordance with Sections 59-12-211 through 59-12-215.
74 Section 3. Section 63I-1-259 is amended to read:
75 63I-1-259. Repeal dates: Title 59.
76 (1) Section 59-1-213.1 is repealed May 9, 2024.
77 (2) Section 59-1-213.2 is repealed May 9, 2024.
78 (3) Subsection 59-1-403(4)(aa), which authorizes the State Tax Commission to inform
79 the Department of Workforce Services whether an individual claimed a federal earned income
80 tax credit, is repealed July 1, 2029.
81 (4) Subsection 59-1-405(1)(g) is repealed May 9, 2024.
82 (5) Subsection 59-1-405(2)(b) is repealed May 9, 2024.
83 (6) Section 59-7-618.1 is repealed July 1, 2029.
84 (7) Section 59-7-627 is repealed December 31, 2027.
85 [(7)] (8) Section 59-9-102.5 is repealed December 31, 2030.
86 [(8)] (9) Section 59-10-1033.1 is repealed July 1, 2029.
87 (10) Section 59-10-1048 is repealed December 31, 2027.
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88 Section 4. Effective date.
89 This bill takes effect on May 1, 2024.
90 Section 5. Retrospective operation.
91 (1) The following sections have retrospective operation for a taxable year beginning on
92 or after January 1, 2024:
93 (a) Section 59-7-627; and
94 (b) Section 59-10-1048.
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Statutes affected: Introduced: 63I-1-259, 59-1-213.1, 59-1-213.2, 59-1-214, 59-7-618.1, 59-7-627, 59-9-102.5, 59-10-1033.1, 59-10-1048
S.B. 142 1st Substitute (Not Adopted) Text: 63I-1-259, 59-1-213.1, 59-1-213.2, 59-7-618.1, 59-7-627, 59-9-102.5, 59-10-1033.1, 59-10-1048