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Category: Utah

Utah Apportionable Nonrefundable Credits

These credits will appear on the state return (TC-40) on line 23. They will also be broken out in detail on the attached TC-40A Part III.

Apportionable Nonrefundable Credits can reduce your income tax to zero, but cannot result in a refund.

Capital Gain Transactions Credit

You may claim a credit for the short-term and long-term capital gain on a transaction if:

a. The gain occurs on or after January 1, 2008;

b. At least 70% of the gross proceeds of the capital gain transaction are used to purchase stock in a qualified Utah small business corporation within 12 months from when the gain was recognized; and

c. You did not have an ownership interest in the qualified Utah small business corporation at the time of investment.

For more information and detailed definitions, visit the Tax Commission website, or refer to UC §59-10-1022.

Note: Any credit that is more than the tax liability may not be carried back or forward.

Utah Educational Savings Plan (UESP) 529 Plan Credit

If a qualified contribution was made to your Utah Educational Savings Plan (UESP) account, you may claim a nonrefundable credit. To qualify, the contribution must be made during the taxable year and not have been deducted on your federal return. The credit is 5 percent of the lesser of the investment made during the tax year or $1,860 per individual beneficiary. If married filing jointly, the credit is 5% of contributions made (up to $3,720 per beneficiary) during the tax year, with a maximum credit of $1,860 per beneficiary.

A UESP account holder should receive form TC-675H, Statement of Contributions and Disbursements for the Utah Educational Savings Plan, from UESP. Your allowable credit amount is shown on 1A or line 1B of form TC-675H, whichever applies. Enter this credit amount.

Keep form TC-675H with your records. If you have any questions about UESP, call 801-321-7188 or 1-800-418-2551, or

Note: Any UESP credit in excess of the tax liability may not be carried back or carried forward.

Medical Care Savings Account (MSA) Credit

If you made a qualified investment in a Medical Care Savings Account (MSA) and did NOT deduct that investment on your federal form 1040, you may use the MSA amounts to calculate your Utah credit.

The Utah resident account holder of an MSA should receive a form TC-675M, Statement of Withholding for Utah Medical Savings Account, from the account administrator. Include the sum of lines 5 and 6 from form TC-675M on line 1 of the calculation below. Keep form TC-675M with your records.

Calculation of Medical Care Savings Account Tax Credit:

1)Eligible amount for credit from line 5 & 6 of form TC-675M......$__________

2)Multiply line 1 by .05. This is your MSA credit.....................$________

Any Medical Savings Account credit in excess of the tax liability may not be carried back or carried forward.

Health Benefit Plan Credit

Amounts itemized or otherwise deducted in determining federal taxable income, or used to claim a federal credit, cannot be used for this Utah credit. You may claim a credit of 5% of the amount paid for a health benefit plan only if you, your spouse on a joint return, or any dependent claimed on your return is not insured under a health benefit plan maintained and funded in whole or in part by your, your spouse’s or your dependent’s current or former employer, or another person’s employer. You cannot claim this credit if you choose not to participate in a plan maintained and funded by a current or former employer. You also cannot use pre-tax deductions from wages through employer-sponsored programs, such as a cafeteria or flex plan, to claim the credit.

Excluded Amounts

The credit is 5% of amounts paid for health benefit plans (but not self-insurance) less the total of the following:

1. Credit for health insurance costs of eligible individuals (IRC Section 35),

2. Income exclusions for employer-provided coverage under an accident or health plan (IRC Section 106),

3. Cafeteria or employer plans covering all employees who may choose among two or more cash and qualified benefits ts (IRC Section 125),

4. Trade or business expenses for self-employed individuals up to 100% of premiums paid, but not more than your net business income (IRC Section 162),

5. Medical and dental expenses deducted on federal Schedule A that are more than 7.5% of your federal adjusted gross income (IRC Section 213), and

6. All dental, vision, supplemental health, or Medicare supplemental policies if not part of your health benefit plan.

The maximum credit is:

• $300 for a single taxpayer (including married filing separately, head of household, and qualifying widow(er)) with no dependents,

• $600 for a married couple filing jointly with no dependents,


• $900 for all taxpayers (any filing status) with dependents.

There is no form for this credit. Keep all related documents

with your records.

Note: Any credit that is more than the tax liability may not be carried back or forward.
See for more information

Qualifying Solar Project Credit

(UC §59-10-1024)

You may claim a credit of 25% of the amount paid to buy one or more solar units from a qualifying political subdivision, up to a maximum credit of $2,000. This is in addition to any other energy credit you claim. A qualifying solar unit is a portion of the electrical output of an active solar project constructed, controlled or owned by a qualifying political subdivision, which generates electricity furnished to and for the benefit of one or more residential units, and is sold to the taxpayer in exchange for a credit on the taxpayer's electric bill.

Note: Any credit that is more than the tax liability or in excess of $2,000 may be carried forward for the next four years.

There is no form for this credit. Keep all related documents with your records. Contact your city or electrical utility provider or refer to UC §59-10-1024 for more information.

Gold and Silver Coin Sale Credit

Capital gains recognized on the sale or exchange of gold and silver coins issued by the United States government (referred to as specie legal tender) and reported on an individual or fiduciary federal income tax return are eligible for an apportionable non-refundable credit against Utah tax.

You may also include any gold and silver coin or bullion, other than that issued by the United States, if a court of competent jurisdiction issued a final, unappealable judgment or order determining that Utah may recognize the gold or silver coin or bullion as legal tender in the state, or congress enacts legislation expressly providing that such coin or bullion is legal tender. 

To qualify for the credit, all of the following condition must be met:

  1. The capital gain transaction must be for the sale or exchange of gold or silver coin issued by the federal government for another form of legal tender;
  2. The capital gain transaction must result in a short-term or long-term capital gain §1222) that is reported on Schedule D of your federal individual or fiduciary return;
  3. Any eligible capital gain must first be offset by any capital loss recognized for the year for federal purposes from the sale of gold and/or silver coin; and
  4. The transaction must be made in taxable years beginning on or after January 1, 2012.For addition information, please click here.