All Roll Calls
Yes: 200 • No: 0
UtahH.B. 602025 General SessionHouseWALLET
State Tax Amendments
Sponsored By: Steve Eliason (Republican)
Signed by Governor
Department of Workforce ServicesWorkforce ServicesCorporate TaxIncome TaxState Tax CommissionRevenue and TaxationIndividual Income TaxTax Credits
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Bill Overview
Analyzed Economic Effects
14 provisions identified: 5 benefits, 8 costs, 1 mixed.
Income test sets individual tax exemption
Beginning January 1, 2026, an income test determines whether you are exempt from the covered Utah individual income taxes. Your modified adjusted gross income must not exceed your personal exemptions plus your standard deduction. The income calculation starts with federal adjusted gross income and includes Utah’s required additions and subtractions.
Tax relief for repaid Social Security
Beginning January 1, 2026, you can subtract qualifying Social Security repayments from Utah adjusted gross income. The repayment must cover benefits received in an earlier tax year. You must claim a federal tax credit for the repayment in the current year. You must not have claimed Utah’s Social Security benefits credit for the year you received those benefits. The subtraction equals the qualifying repayment.
Business owners get longer credit carryforwards
Starting with tax years beginning January 1, 2026, eligible owners get longer to use unused pass-through tax credits. The carryforward period grows from five to ten tax years. The credit covers Utah tax a qualifying pass-through business paid on income attributed to the owner. Owners must add that tax to adjusted gross income. The credit is nonrefundable and cannot be carried back to earlier years.
Medical savings accounts lose tax exemption
Beginning May 7, 2025, the law removes a tax exemption for medical care savings accounts. The removed exemption covered contributions, earned interest, and reimbursements for eligible medical expenses. Account holders lose that protection from tax.
Social Security credit has income limits
Effective January 1, 2026, the Social Security credit phaseout applies to tax years beginning January 1, 2025, or later. The credit falls 2.5 cents per dollar of modified adjusted gross income above your filing-status limit. Limits are $37,500 for married filing separately, $45,000 for single filers, and $75,000 for joint or head-of-household filers. This applies to recipients whose Social Security benefits count in federal adjusted gross income.
Business incentive credits end in stages
The targeted business income tax credit ended December 31, 2024. Enterprise zone credits are available only for tax years beginning before January 1, 2025, and require a state-issued credit certificate. Unused enterprise zone credits exceeding the tax bill can carry forward for up to the next three tax years. The enterprise zone tax credit provisions are repealed December 31, 2026. The Enterprise Zone Act and its funding provision also end that day.
Residences lose commercial energy credit eligibility
Beginning January 1, 2025, a residence cannot qualify as a commercial unit for Utah commercial energy system tax credits. A qualifying commercial unit must be a nonresidential building or structure used by an entity to conduct business.
Filing timing affects sales tax refunds
Beginning January 1, 2026, qualifying sales and use tax refunds earn interest under Utah’s tax interest rules. For director-certified exemptions, claims are due by the earlier of three years after certification or six years after payment. File within 180 days after certification to earn interest from the tax-payment date; later claims earn interest starting 30 days after filing. A separate three-year claim window applies when the exemption is otherwise established. Those refunds earn interest starting 30 days after filing.
Qualifying bank insurance premiums remain deductible
Beginning January 1, 2026, taxpayers can subtract qualifying FDIC premiums from Utah adjusted gross income. Premiums must be paid or incurred during the tax year and denied a federal deduction under the applicable federal rule. The amendment removes the prior wording limiting the subtraction to tax years beginning January 1, 2020, or later.
Amended tax refunds face interest cap
For interest accruing beginning January 1, 2026, covered amended-return overpayments have a $100 interest cap per calendar year. The cap does not apply to overpayments provided to federally recognized tribes or caused by Tax Commission error. It limits interest, not the refund of overpaid tax.
Rarely used tax credits face removal
Effective May 7, 2025, the law requires removal of covered tax credits that meet two low-use tests. Annual claims must total less than $10,000, with fewer than 10 claimants, estates, and trusts using the credit. Both tests must hold for three straight tax years beginning January 1, 2025, or later. Removal and the ban on claims start two tax years after both tests are met. The Tax Commission must publish notice and report the removal to lawmakers.
Small business corporations must file annually
Beginning in 2026, electing small business corporations must file a Utah return each tax year. Returns must report income, deductions, shareholders, shares owned, distributions, and other information required by the Tax Commission.
Payment companies must report Utah transactions
Beginning January 1, 2026, covered payment settlement companies must send Utah the same transaction information required in federal reports. This applies to participating payees with Utah addresses. Companies must file electronically in an approved format within 30 days after the federal report is due. This reporting duty falls on the payment company, not the payee.
Workforce Services gains tax data access
Beginning May 7, 2025, the Tax Commission must share specified tax information with Workforce Services. Workforce Services can use relevant return information to check public-assistance eligibility, institutional-care payment responsibility, and related program matters. Federal law must allow the sharing, and Workforce Services must treat the information as private. These rules do not themselves change benefit eligibility or create a household payment duty.
Sponsors & Cosponsors
Sponsor
Steve Eliason
Republican • House
Cosponsors
Daniel McCay
Republican • Senate
Roll Call Votes
House vote • 3/5/2025
House/ concurs with Senate amendment
Yes: 69 • No: 0
Senate vote • 3/3/2025
Senate/ circled
Yes: 0 • No: 0
Senate vote • 3/3/2025
Senate/ circled
Yes: 0 • No: 0
Senate vote • 3/3/2025
Senate/ uncircled
Yes: 0 • No: 0
Senate vote • 3/3/2025
Senate/ floor amendment
Yes: 0 • No: 0
Senate vote • 3/3/2025
Senate/ uncircled
Yes: 0 • No: 0
Senate vote • 3/3/2025
Senate/ passed 3rd reading
Yes: 26 • No: 0
Senate vote • 2/13/2025
Senate/ passed 2nd reading
Yes: 26 • No: 0
Senate vote • 2/13/2025
Senate/ substituted
Yes: 0 • No: 0
Senate vote • 2/3/2025
Senate Comm - Substitute Recommendation
Yes: 4 • No: 0
Senate vote • 2/3/2025
Senate Comm - Favorable Recommendation
Yes: 5 • No: 0
House vote • 1/28/2025
House/ uncircled
Yes: 0 • No: 0
House vote • 1/28/2025
House/ passed 3rd reading
Yes: 70 • No: 0
House vote • 1/23/2025
House/ circled
Yes: 0 • No: 0
House vote • Unknown
House/ circled
Yes: 0 • No: 0
Senate vote • Unknown
Senate/ floor amendment
Yes: 0 • No: 0
Senate vote • Unknown
Senate/ uncircled
Yes: 0 • No: 0
Senate vote • Unknown
Senate/ circled
Yes: 0 • No: 0
Senate vote • Unknown
Senate/ substituted
Yes: 0 • No: 0
Senate vote • Unknown
Senate/ circled
Yes: 0 • No: 0
House vote • Unknown
House/ uncircled
Yes: 0 • No: 0
Senate vote • Unknown
Senate/ uncircled
Yes: 0 • No: 0
Actions Timeline
Governor Signed
3/25/2025House/ to Governor
3/12/2025HouseHouse/ received enrolled bill from Printing
3/12/2025HouseHouse/ enrolled bill to Printing
3/7/2025HouseEnrolled Bill Returned to House or Senate
3/7/2025Draft of Enrolled Bill Prepared
3/5/2025Bill Received from House for Enrolling
3/5/2025House/ signed by Speaker/ sent for enrolling
3/5/2025HouseHouse/ received from Senate
3/5/2025HouseSenate/ to House
3/5/2025SenateSenate/ signed by President/ returned to House
3/5/2025SenateSenate/ received from House
3/5/2025SenateHouse/ to Senate
3/5/2025HouseHouse/ concurs with Senate amendment
3/5/2025HouseHouse/ placed on Concurrence Calendar
3/4/2025HouseHouse/ received from Senate
3/4/2025HouseSenate/ to House with amendments
3/3/2025SenateSenate/ passed 3rd reading
3/3/2025SenateSenate/ uncircled
3/3/2025SenateSenate/ circled
3/3/2025SenateSenate/ floor amendment
3/3/2025SenateSenate/ uncircled
3/3/2025SenateSenate/ circled
3/3/2025SenateSenate/ placed back on 3rd Reading Calendar
3/3/2025SenateSenate/ placed on 3rd Reading Calendar table
2/13/2025Senate
Bill Text
Enrolled
3/7/2025
Amended 3/4/2025 08:03:837
3/4/2025
Substitute #4
2/8/2025
Substitute #3
2/3/2025
Substitute #2
1/31/2025
Substitute #1
1/20/2025
Introduced
12/20/2024