Committee approves bill to remove interstate tax‑credit from five‑year review and make technical fixes

SALT LAKE CITY — The Revenue and Taxation Interim Committee on Sept. 16 voted to favorably recommend a bill that removes an income‑tax credit for taxes paid to another state from the five‑year tax‑credit review cycle and makes several technical and administrative changes to the review schedule.

Andrea (managing associate general counsel for the committee) presented the bill file and said the committee had earlier determined the credit for taxes paid to another state was unlikely to be substantially changed by the Legislature and therefore should be removed from the five‑year review cycle. Andrea described three additional changes in the draft:

- Remove an obsolete, one‑time reporting requirement for pass‑through entities claiming excess withholding.

- Align an agricultural motor‑fuel income‑tax credit’s review schedule with the committee’s five‑year cycle (the motor‑fuel credit’s language still referenced a three‑year review).

- Remove obsolete repealer language regarding a tax credit that had previously been scheduled to phase out.

Representative Ward made a motion to favorably recommend the bill as a committee bill; the committee voted aye and the chair ruled the motion passed unanimously.

Why it matters: The changes simplify the tax‑credit review calendar and remove outdated reporting requirements, reducing administrative burden for staff and for entities subject to review. The bill will proceed as a committee bill into the interim drafting and potential session process.