Utah Code § 53E-7-407 — Utah Code / Title 53E / Chapter 53E-7 / § 53E-7-407
§ 53E-7-407. Tax credit certificates issued by a scholarship granting organization.
Status: in_force

(1) In accordance with this section, a scholarship granting organization shall provide a tax credit certificate, on a form provided by the State Tax Commission, to a person that makes a donation as described in Section 53E-7-405. (2) (a) The scholarship granting organization shall provide the information from a completed tax credit certificate to the State Tax Commission electronically and in a manner prescribed by the State Tax Commission on or before the end of each April following the close of the taxable year for which a tax credit certificate is issued. (b) A scholarship granting organization shall issue a tax credit certificate within 30 days after the day on which a person makes a donation to the program. (3) (a) Before accepting a donation to the program from a person, the scholarship granting organization shall provide the person with notice: (i) that the donation may not be eligible for a tax credit; (ii) of the process described in Subsection (3)(b); and (iii) of the total amount of tax credit certificates that the scholarship granting organization has issued for the calendar year. (b) During a calendar year, a scholarship granting organization shall: (i) issue tax credit certificates in the order that the scholarship granting organization received a corresponding donation; and (ii) track the total amount of program donations received during the year as corresponding tax credit certificates are issued. (c) If a scholarship granting organization accepts a donation that, when added to the current total amount of program donations received that year, will exceed the program donations cap described in Subsection (4), the scholarship granting organization shall issue a tax credit certificate in the amount that is the difference between the program donations cap and the total amount of program donations received before the donation was received. (4) (a) The program donations cap for the 2021 calendar year is $5,940,000. (b) For a calendar year after 2021, the state board shall calculate the program donations cap as follows: (i) if the total program donations for the previous calendar year exceed 90% of the cap amount for that calendar year, the cap for the current calendar year is the cap amount for the previous calendar year increased by 10% plus a percentage equal to the percentage of growth in the participation of the program from the previous calendar year; or (ii) if the total program donations for the previous calendar year did not exceed 90% of the cap amount for that calendar year, the cap for the current calendar year is the same as the cap amount for the previous calendar year. (5) A person that receives a tax credit certificate in accordance with this section shall retain the certificate for the same time period a person is required to keep books and records under Section 59-1-1406. (6) Except as provided in Subsection (7), if a tax credit is issued under this Section for a donation, the tax credit shall be issued for the taxable year in which the donation is made. (7) Notwithstanding Subsection (6), if a tax credit is issued under this section for a donation, a tax credit may be issued for the previous taxable year if: (a) the donation is made on or before the fifteenth day of April following the end of the previous taxable year; (b) the person receiving the tax credit certifies in writing that they will not claim a deduction or credit on the person's federal income tax return for the donation amount to the extent that they claim a tax credit under Section 59-7-625 or Section 59-10-1041 for the same donation; and (c) the scholarship granting organization includes in the report described in Subsection (2), the date the donation was made. (8) For purposes of calculating the donation cap described in Subsection (4), a tax credit amount shall count against the donation cap for the year the tax credit may be claimed.