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Senate approves bill to decouple Utah corporate tax from federal GILTI treatment
Summary
The Senate voted to advance SB 53, which would remove global intangible low‑taxed income (GILTI) from Utah's corporate tax base and return the state to its prior definition of taxable corporate income; the fiscal note estimates an $11 million annual revenue reduction to education funds.
Sen. Fillmore moved and the Senate advanced Senate Bill 53 on a roll-call showing 21 yeas and 8 nays, approving a measure to decouple Utah's corporate income tax from the federal GILTI (global intangible low‑taxed income) treatment.
The bill would restore Utah's previous definition of corporate income, excluding certain foreign‑source earnings that were included under the federal Tax Cuts and Jobs Act of 2017. "This simply takes us back to the way things were 2 years ago," Sen. Fillmore said, arguing the change would preserve Utah’s competitiveness in locating businesses. He told colleagues the fiscal note lists a revenue impact of "$11,000,000" that the state would lose by returning to the older definition.
Opponents pressed the sponsor on the fiscal effects and alternative approaches. Sen. Escamilla said most states that tax GILTI do so at partial rates and asked why Utah would move to 0 percent; he said, "there's only 1 state that has done GILTI at a 0%" and urged consideration of a 50% approach instead. Sen. Hilliard and others raised broader questions about how federal tax changes have affected Utah revenue overall and whether the single fiscal‑note figure captures the full picture.
Supporters emphasized state policy control and the prospect of increased business competitiveness. In closing, the sponsor argued the change "lets the Utah legislature set Utah policy for what Utah based income is." The Senate recorded the third‑reading advancement after the roll call.
