Utah Code 53E-7-407. Tax credit certificates issued by a scholarship granting organization
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(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 .
Terms Used In Utah Code 53E-7-407
- Equal: means , with respect to biological sex, of the same value. See Utah Code 68-3-12.5
- Person: means :(24)(a) an individual;(24)(b) an association;(24)(c) an institution;(24)(d) a corporation;(24)(e) a company;(24)(f) a trust;(24)(g) a limited liability company;(24)(h) a partnership;(24)(i) a political subdivision;(24)(j) a government office, department, division, bureau, or other body of government; and(24)(k) any other organization or entity. See Utah Code 68-3-12.5
- Process: means a writ or summons issued in the course of a judicial proceeding. See Utah Code 68-3-12.5
- program: means the program established in Section
53E-7-402 . See Utah Code 53E-7-401- Scholarship: means a grant awarded to an eligible student:
(13)(a) by a scholarship granting organization out of program donations; and(13)(b) for the purpose of paying for a scholarship expense. See Utah Code 53E-7-401- Scholarship granting organization: means an organization that is:
(15)(a) qualified as tax exempt under Section 501(c)(3), Internal Revenue Code; and(15)(b) recognized through an agreement with the state board as a scholarship granting organization, as described in Section53E-7-404 . See Utah Code 53E-7-401- State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
- State board: means the State Board of Education. See Utah Code 53E-1-102
(2)(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.(2)(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)(3)(a) Before accepting a donation to the program from a person, the scholarship granting organization shall provide the person with notice:(3)(a)(i) that the donation may not be eligible for a tax credit;(3)(a)(ii) of the process described in Subsection (3)(b); and(3)(a)(iii) of the total amount of tax credit certificates that the scholarship granting organization has issued for the calendar year.(3)(b) During a calendar year, a scholarship granting organization shall:(3)(b)(i) issue tax credit certificates in the order that the scholarship granting organization received a corresponding donation; and(3)(b)(ii) track the total amount of program donations received during the year as corresponding tax credit certificates are issued.(3)(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)(4)(a) The program donations cap for the 2021 calendar year is $5,940,000.(4)(b) For a calendar year after 2021, the state board shall calculate the program donations cap as follows:(4)(b)(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(4)(b)(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 Section59-1-1406 .