TC-20 Instructions — Utah Corporation Franchise & Income Tax Return

UTAH
Utah State Tax Commission • 210 North 1950 West • Salt Lake City, Utah 84134 • tax.utah.gov Forms and Instructions

# Contents

General Instructions and Information … 1 TC-20 - Utah Corporation Franchise and Income Tax Return … 6 Schedule A - Utah Net Taxable Income and Tax Calculation … 8 Schedule B - Additions to Unadjusted Income … 13 Schedule C - Subtractions from Unadjusted Income … 15 Schedule D - Utah Contributions Deduction … 16 Schedule H - Nonbusiness Income Net of Expenses … 18 Schedule J - Apportionment Schedule … 20 Schedule M - Corporations Included in Combined Filings … 23 Common Return Errors … 25
File the Right Corporate Forms

TC-20 if Corporation ﬁ led federal form 1120, 1120-IC-DISC
TC-20S if S Corporation ﬁ led federal form 1120S
TC-20MC if Corporation ﬁ led federal forms 1120-H, 1120-RIC, 1120-REIT, 990-T or 8023

E-Filing is Easier!
E-ﬁ ling is the easiest and most accurate way to ﬁ le. Ask your tax preparer about e-ﬁ ling your individual, ﬁ duciary, partnership, C corporation and S corporation returns, or use commercial tax software.
Utah is Online
Utah oﬀ ers many online services for individual and business ﬁ lers, including: t tap.utah.gov

Pay by e-check or credit card.
Manage your Utah tax account.
Request payment plans. t tax.utah.gov
Download forms and instructions for all Utah tax types.
Link to free business resources and other services.

E-Verify for Employers
Employers can help prevent identity theft by verifying the Social Security numbers of job applicants. E-Verify is a free service of the U.S.
Department of Homeland Security that veriﬁ es employment eligibility through the Internet. Employers can use E-Verify at everify.uscis.gov.
Cover art by Randolph Prawitt
Utah Taxpayer Advocate Service
The Taxpayer Advocate Service helps taxpayers who have made multiple, unsuccessful attempts to resolve concerns with the Tax Commission. This service helps resolve problems when normal agency processes break down, identiﬁ es why problems occurred, and suggests solutions. See tax.utah.gov/contact, or contact us to ﬁ nd out if you qualify for this service at 801-297-7562 or 1-800-662-4335, ext. 7562, or by email at taxpayeradvocate@utah.gov.
Do not use the Taxpayer Advocate Service to bypass normal methods for resolving issues or disputes.
Need more information?
Questions 801-297-2200 or
1-800-662-4335 (outside the Salt Lake area) Research Utah rules, bulletins and Commission decisions:
Utah Code Ann. (UCA): le.utah.gov Internal Revenue Code (IRC): law.cornell.edu/uscode/26 If you need an accommodation under the Americans with Disabilities Act, email taxada@utah.gov, or call 801-297-3811 or TDD
801-297-2020. Please allow three working days for a response.

# General Instructions and Information

What's New
What's New
• Utah Tax Rate: The 2025 Utah Legislature passed HB 106, lowering the corporate income tax rate from 4.55 percent to 4.5 percent.

Tax Credit for Employer-provided Daycare: The 2025 Utah Legislature passed HB 106, creating two tax credits for employers that provide daycare services. See page 10.

# Reminders

Market Sourcing of Revenues from Performance of Services by Multi-state Taxpayers: Corporations performing a service both in and outside of Utah must calculate the sales factor numerator on Schedule J by considering the service income to be in Utah if the buyer receives a greater beneﬁ t of the service in Utah than in any other state. See Schedule J - Apportionment Schedule on page 20.
Foreign Operating Company Changes: A foreign operating company must have a minimum of at least $1,000,000 in payroll located outside the United States and at least $2,000,000 in property located outside the United States.

In addition, income generated from transactions between members of the unitary group, or from intangible property or an asset held for investment does not qualify for the 50 percent foreign operating company income exclusion on Schedule C. See pages 4 and 14.

Method of Apportioning Income: To determine if you qualify as an optional apportionment taxpayer or a sales factor weighted taxpayer, see Schedule J - Apportionment Schedule on page 19.
Current year IRC 965(a) Installment Amount: If you were liable for Utah tax on deferred foreign income (IRC §965(a)) and chose to pay the tax in installments, include the applicable amount on Schedule A, line 20. See page 8.

# Electronic Filing

Utah corporation returns may be ﬁ led electronically under a joint program between the Internal Revenue Service and the Utah State Tax Commission.
The federal and state information is submitted at the same time and the IRS extracts its federal data and forwards the state data to the Tax Commission. No papers need to be mailed to the agencies when ﬁ ling electronically.
Check with your software provider to see if they oﬀ er electronic corporation ﬁ ling.
Learn more about ﬁ ling your corporation return electronically at tax.utah.gov/developers/mef.

# Identiﬁ cation Numbers

The corporation's federal Employer Identiﬁ cation Number
(EIN) is the Utah identiﬁ cation number. The Utah Department of Commerce also issues a registration number upon incorporation or qualiﬁ cation in Utah. Enter both the EIN and Utah Incorporation/Qualiﬁ cation number in the proper ﬁ elds. These numbers are used for identiﬁ cation of the corporate tax return.

# Corporation Changes

Report corporation changes (e.g., name change, physical and/or mailing address changes, merger, or ceasing to do business in Utah) in writing to:
UT Division of Corporations and Commercial Code Department of Commerce 160 E 300 S, 2nd Floor PO Box 146705 Salt Lake City, UT 84114-6705 and submit form TC-69C to:
Master Records
210 N 1950 W
Salt Lake City, UT 84134-3215

# Dissolution or Withdrawal

Corporations that cease to do business in Utah must either dissolve or withdraw the corporation.
Corporations incorporated in Utah must ﬁ le Articles of Dissolution with the Department of Commerce.
Corporations incorporated outside of Utah must ﬁ le an Application for Withdrawal with the Department of Commerce.
The corporation must ﬁ le all its tax returns and pay all its taxes before the Department of Commerce will authorize the withdrawal.

# Rounding Oﬀ to Whole Dollars

Round oﬀ cents to the nearest whole dollar. Round down if cents are under 50 cents; round up if cents are 50 cents and above. Do not enter cents on the return.

# Negative Numbers

When reporting losses or other negative numbers, do not use parentheses. Always indicate a negative number with a minus sign (-).

# Liability for Filing and Paying

Tax Forms

Tax Forms
The Tax Commission does not mail forms for ﬁ ling corporate taxes. Get forms at tax.utah.gov/forms.
Note: See What to Attach and What to Keep on page 3 for what federal information you must include with your Utah return.

Franchise Tax

# Franchise Tax

Every C corporation incorporated in Utah (domestic), qualiﬁ ed in Utah (foreign), or doing business in Utah, whether qualiﬁ ed or not, must ﬁ le a corporate franchise tax return. C corporation returns are ﬁ led on form TC-20. Every corporation that ﬁ les form TC-20 must pay a minimum tax (privilege tax) of $100, regardless of whether or not the corporation exercises its right to do business.

S Corporation

S Corporation
Every S corporation (as deﬁ ned in IRC §1361(a)) that has ﬁ led a proper and timely election under IRC §1362(a) must ﬁ le form TC-20S, so long as the federal election remains in eﬀ ect. The minimum tax does not apply to S corporations.

Income Tax

# Income Tax

Corporate income tax ﬁ lers use form TC-20.
Corporations required to ﬁ le under the income tax provisions are those that derive income from Utah sources, but are not qualiﬁ ed to do business in Utah and have no regular and established place of business in Utah, either owned or rented, and do not maintain an inventory or have employees located at a place of business in Utah.
Example 1:
Example 1:
A trucking company, operated in or through Utah by a foreign corporation not qualiﬁ ed to do business in Utah, is subject to income tax rather than franchise tax.
Example 2:
Example 2:
A lender issuing credit cards to Utah customers from outside Utah that is not qualiﬁ ed to do business in Utah and has no place of business in Utah is subject to income tax rather than franchise tax.
A $100 minimum tax applies to the corporate income tax.

Federal Form 1120-IC-DISC

# Federal Form 1120-IC-DISC

If the corporation is ﬁ ling a federal form 1120-IC-DISC and is not owned 50 percent or more by another corporation, none of its income is taxable to the corporation but must be passed-through to the DISC corporation shareholders who would report and pay tax on the distribution on their personal or business tax returns.

# Tax Year

The tax year for Utah tax purposes must match the tax year used for federal tax purposes. When the tax year changes for federal purposes, the tax year must be changed for Utah purposes. See Filing Return When Period Changed below.

# Filing Return When Period Changed

When changes are made to the tax year, as indicated under Tax Year, above, a short-period return is required. The shortperiod return must cover the period of less than 12 months between the prior tax year-end and the new tax year. The tax rates as provided in UCA §§59-7-104 and 59-7-201 apply to short-period returns, which includes a minimum tax of $100.

# Where to File

Mail your return to:
210 N 1950 W
Salt Lake City, UT 84134-0300

# Due Date

A return must be ﬁ led on or before the 15th day of the fourth month following the close of the tax year or the due date of the federal return, whichever is later. If the due date falls on a Saturday, Sunday or legal holiday, the due date becomes the next business day.

# Filing Extension

Corporations are automatically allowed an extension of up to six months to ﬁ le a return without ﬁ ling an extension form.
This is NOT an extension of time to pay your taxes - it is only an extension of time to ﬁ le your return. To avoid penalty, the prepayment requirements must be met on or before the original return due date, and the return must be ﬁ led within the six-month extension period.

# Extension Prepayments

must equal 90 percent of the current year's tax liability (or the $100 minimum tax, whichever is greater) or 100 percent of the previous year's tax liability.
The tax used to compute the 90 percent amount includes the interest on installment sales and the recapture of low-income housing credit on the return.
Use form TC-559, Corporation/Partnership Payment Coupon to make the estimated prepayments.

# Quarterly Payments

Every corporation having a Utah tax liability of $3,000 or more in the current tax year, or a tax liability of $3,000 or more in the previous tax year, must make quarterly estimated tax payments. In addition, a parent company ﬁ ling a combined report with aﬃ liated companies must make the quarterly payment when the aggregate tax amount is $3,000 or more for all companies listed on Schedule M, including those paying only the minimum tax.
A corporation does not need to make quarterly estimated tax payments the ﬁ rst year it ﬁ les in Utah if it pays the minimum tax on or before the due date, without the extension.
Quarterly estimated payments are due on the 15th day of the 4th, 6th, 9th and 12th months of the corporation's tax year, unless federal action changes the federal quarterly due dates.
Corporations may elect to make the quarterly estimated tax payments equal to 100 percent of the prior year's tax in four equal payments, or 90 percent of the current year's tax based on the percentages below. As deﬁ ned in UCA §59-7-504(2), the applicable percentage of the required payment for annualized income installments, for adjusted seasonal installments, and for estimated tax payments based on the current year tax liability is:
Installment
Installment Percentage
Percentage
1st 22.5
2nd 45.0
3rd 67.5
4th 90.0

If you use a diﬀ erent annualization period than the period used for federal purposes, you must make an election with the Tax Commission at the same time as provided in IRC §6655.
Make estimated tax payments with form TC-559, Corporation/ Partnership Payment Coupon.
Corporations that do not make the required tax prepayments are subject to a penalty. See Penalties, below.

# Penalties

Utah law (UCA §59-1-401) provides penalties for not ﬁ ling tax returns by the due date, not paying tax due on time, not making suﬃ cient prepayment on extension returns, and not ﬁ ling information returns or supporting schedules. See tax.utah.gov/billing/penalties-interest and Pub 58, Utah Interest and Penalties, at tax.utah.gov/forms.
The Tax Commission will calculate the penalty for underpayment of required prepayments.

# Exceptions to Penalty on Estimated Tax

Annualized Exception
Annualized Exception
A corporation may annualize its income before determining the amount of each estimated tax installment. Follow federal guidelines to determine annualized income. If the corporation meets the annualized exception at the federal level for any installment, check the appropriate box(es) on form TC-20, line 15.
Recurring Seasonal Exception
Recurring Seasonal Exception
A corporation with recurring seasonal income may annualize its income before determining the amount of each estimated tax installment. Follow federal guidelines to determine seasonal income. If the corporation meets the seasonal exception at the federal level for any installment, check the appropriate box(es) on form TC-20, line 15.
Prepayment of Minimum Tax
Prepayment of Minimum Tax
Corporations that meet the prepayment requirement in the current year and had a tax liability of $100 (the minimum tax) for the previous year may choose to prepay the $100 minimum tax on the 15th day of the 12th month instead of four payments of $25.
Corporations that met the prepayment requirement in the previous year and have a tax liability of $100 (the minimum tax) in the current year may choose to prepay the minimum tax amount of $100 on the 15th day of the 12th month instead of four payments of $25. In this case, the corporation must pay $100, not 90 percent.

# Interest (in addition to penalties due)

(in addition to penalties due)
Interest is assessed on underpayments from the due date until the liability is paid in full. The interest rate for the 2026 calendar year is 6 percent.
For more information, get Pub 58, Utah Interest and Penalties, at tax.utah.gov/forms.

# Suspension for Failure to Pay Tax Due

Utah law provides for suspension of a corporation's right to do business in Utah if it fails to pay taxes due before 5:00 p.m. on the last day of the 11th month after the due date.
If you cannot pay the full amount you owe, you can request a payment plan. Log into your TAP account at tap.utah.gov.
From the Corporate/Partnership panel, click "Request waiver, payment plan, or payment plan email."
You may also:

complete form TC-804B, Business Tax Payment Agreement Request (tax.utah.gov/forms), or
call the Tax Commission at 801-297-7703 or 1-800-662-4335 ext. 7703.

# What to Attach and What to Keep

Include the following with your Utah TC-20. Also, keep copies of these with your tax records.
• Utah Corporation Return Schedules: Attach applicable Utah schedules A, B, C, D, E, H, J, and/or M.

Federal Return: Attach only pages 1 through 6 of your federal corporation return, plus Schedule M-3 and IRS form 1125-A, if applicable.

Do not send a copy of your entire federal return, credit schedules, worksheets, or other documentation with your
Utah return unless otherwise stated in these instructions.
Keep these in your ﬁ les. We may ask you to provide them later to verify entries on your Utah return.

# Combined Reports

Any corporation owned by another corporation, or owning more than 50 percent of another corporation, or a group of corporations related through common ownership (i.e., certain brother/sister corporations) and engaged in unitary business activity, must ﬁ le a combined report showing the combined income of all such corporations.
A captive real estate investment trust must be included as a member of a unitary group. A real estate investment trust
(REIT) is a captive real estate investment trust if the shares or beneﬁ cial interests of the REIT are not regularly traded on an established securities market and more than 50 percent of the voting power or value of the shares or beneﬁ cial interests of the REIT are directly, indirectly, or constructively owned or controlled by a controlling entity of the REIT.

# Unitary Business

A unitary business exists if the activities of the corporations (subsidiary or aﬃ liated corporations related through common ownership) are economically interdependent as demonstrated by the following factors:

Strong centralized management
Functional integration
Attainment of operational economies of scale

# Investment Trusts

The income and factors for a captive real estate investment trust are included in a manner similar to other unitary corporations in the combined group. Utah statutes include taxable income from federal form 1120-REIT before the net operating loss deduction and the deduction for dividends paid. A Utah deduction is allowed for the IRC §857(b)(2)(E) deduction.
A subtraction is also allowed for dividends received from a captive real estate investment trust by a member of the unitary group. This subtraction is essentially an intercompany elimination since the 1120-REIT taxable income is included before the federal dividends paid deduction.
The property, payroll and sales of a REIT are included in the factors of the combined group to the extent otherwise provided in Utah laws and rules. Intercompany transactions between a captive REIT and any member of the unitary group must be removed from the sales factor. Similarly, intercompany rents must be removed from the combined property factor.
Water's Edge Combined Report
Water's Edge Combined Report
A unitary group must ﬁ le on a water's edge basis unless the worldwide combination method has been elected. A water's edge combined report includes the income and activities of all members of a unitary group that are:

corporations organized or incorporated in the United States, including those corporations qualifying for the Puerto Rico and Possession Tax Credit as provided in IRC §936; and
corporations organized or incorporated outside of the United States meeting the threshold level of business activity.

Water's Edge Election
Water's Edge Election
A group of corporations that are not otherwise a unitary group may elect to ﬁ le a water's edge combined report under UCA §59-7-402(2) if each member of the group is:

doing business in Utah,
part of the same aﬃ liated group, and
qualiﬁ ed under IRC §1501 to ﬁ le a federal consolidated return.

Each corporation within the aﬃ liated group doing business in Utah must consent to ﬁ ling the combined report. If an aﬃ liated group elects to ﬁ le a combined report, each corporation within the aﬃ liated group doing business in Utah must be included in the combined report.
Corporations that elect to ﬁ le a water's edge combined report under this section may not thereafter elect to ﬁ le a separate return without the consent of the Tax Commission.

# Worldwide

A unitary group may elect to ﬁ le a worldwide combined report.
When the worldwide combined reporting method is elected, the income or loss of each corporation within the unitary group must be included regardless of the country in which the corporations are incorporated or conduct business.
Corporations electing to ﬁ le a worldwide combined report may not later elect to ﬁ le a return on a basis other than a worldwide combined report without the consent of the Tax Commission.

# Threshold Level of Business Activity

Foreign corporations that conduct 20 percent or more of their business activity in the United States, as measured by the average of the property and payroll factors, must be included 100 percent in a water's edge combined report. Any business activity in Utah will subject a foreign corporation to Utah franchise tax. The combined reporting threshold test determines whether the foreign corporation is a member of a unitary group.

# Foreign Dividends

Fifty percent of unitary foreign dividends are included in adjusted income. The remaining 50 percent, less certain expenses, are excluded. (See UCA §59-7-106(1)(k) and (3).) A portion of the property, payroll and sales of each dividendpaying subsidiary is allowed to be included in the combined apportionment denominators at the ratio the amount of the dividend included in Utah adjusted income bears to the total earnings and proﬁ ts for each dividend-paying subsidiary.

# Preparation of Combined Report(s)

A group ﬁ ling a combined report will calculate adjusted income of the combined group by:

determining which corporations are unitary;
computing unadjusted income on a separate return basis;
combining income or loss of the members included in the combined report;
making appropriate eliminations and adjustments between members included in the combined report to arrive at unadjusted income on a combined basis; and
making additions and subtractions to unadjusted income as outlined in Schedules B, C and D to arrive at adjusted income.

Corporations that ﬁ le either a water's edge or worldwide combined report must eliminate all intercompany sales or other intercompany transactions between corporations included in the combined report in determining the sales factor on TC-20, Schedule J. Similarly, corporations ﬁ ling a Utah combined report may not include intercompany rents or other intercompany transactions between those corporations in determining the property factor. See UCA §59-7-404.5.
A unitary group of corporations is considered a single taxpayer for purposes of the assignment of sales in the sales factor of the apportionment calculation. Therefore, sales of tangible personal property by any member of the unitary group delivered or shipped into Utah are includable in the Utah sales numerator. Conversely, such sales originating in Utah, which are delivered or shipped to another state, will not be included in the Utah sales numerator if any member of the unitary group has a taxable presence (nexus) in that state. See Tax Commission Rule R865-6F-24.

# IRC Sections 338, 338(h)(10)

) and 336(e) and 336(e)
You must complete your Utah return in a manner consistent with the election you make under IRC §§338, 338(h)(10) and 336(e).

# IRC Section 338

If a federal election is made under IRC §338, the target corporation must ﬁ le a separate entity one-day tax return for Utah purposes, as required for federal purposes. The target corporation must include the gain or loss on the deemed sale of assets in its adjusted income. See UCA §59-7-114 for further details.
Get form TC-20MC, Utah Tax Return for Miscellaneous Corporations, at tax.utah.gov/forms.

# IRC Section 338(h)(10)

If an election is made for federal purposes under IRC §338(h)(10), the following apply:

If the target corporation is a member of a unitary group immediately preceding the acquisition date, the target corporation must be included in a combined report to the extent of its income through the acquisition date. The gain or loss on the deemed sale of assets is included in the combined income of the unitary group.
If the target corporation is not a member of a unitary group immediately preceding the acquisition date, the target corporation must ﬁ le a short-period return for the period ending on the acquisition date and must include the gain or loss on the deemed sale of assets in its adjusted income.
Any gain or loss on stock sold or exchanged by a member of a selling consolidated group (as deﬁ ned in IRC §338) which is not recognized for federal purposes may not be included in the adjusted income of the selling corporation.
The target corporation is treated as a new corporation as of the day after the acquisition date.

# IRC Section 336(e)

If an election is made under IRC §336(e), the transaction must be treated as follows:

If the corporation is treated for federal purposes as having disposed of all of its assets and is a member of a unitary group immediately preceding the date of sale, the corporation must be included in a combined return to the extent of its income through the date of sale. The gain or loss on the deemed disposal of assets is included in the combined income of the unitary group.
If the corporation is treated for federal purposes as having disposed of all of its assets and is not a member of a unitary group immediately preceding the date of sale, the corporation must ﬁ le a short-period return for the period ending on the date of sale and must include the gain or loss on the deemed disposal of assets in its adjusted income.
Any gain or loss not recognized for federal purposes on stock sold, exchanged or distributed by a corporation pursuant to IRC §336(e) may not be included in adjusted income.
The new basis of assets of the corporation treated as having disposed of its assets is the same as determined for federal purposes.
The corporation treated as having disposed of its assets is treated as a new corporation as of the day after the date of sale.

# Installment Sales

If a corporation is no longer required to ﬁ le a Utah corporate return, any taxes owed by that corporation on installment sales entered into by that corporation shall accelerate and be due on the corporation's last return ﬁ led in Utah.

# Online

Easily and securely pay your tax online with your credit card, an electronic check (ACH debit), or other electronic options. Online payments may include a service fee. Pay at tap.utah.gov.

# Check or Money Order

To pay by check or money order, mail your check or money order with your return. Make payable to the "Utah State Tax Commission" and write your daytime phone number and "2025 TC-20" on the check. Do not staple to your return.
Remove any check stub before sending. Do not mail cash with your return. The Tax Commission is not liable for cash lost in the mail.
If paying by mail, include a TC-559 coupon with your payment. See form TC-559 on page 24 of these instructions.

TC-20 - Utah Corporation Franchise and Income TC-20 - Utah Corporation Franchise and Income

# Filing Period

File the 2025 return for calendar year 2025 and ﬁ scal years beginning in 2025 and ending in 2026. If the return is for a ﬁ scal year or a short tax year (less than 12 months), ﬁ ll in the tax year beginning and end dates at the top of the form using the format mm/dd/yyyy.

# Corporation Name & Address

Enter the corporation name, address and telephone number, including area code. If the address has changed, see Corporation Changes on page 1.

# Zip Code

Enter your ZIP Code, including the "plus four" at the end, without a hyphen.

# Foreign Country

If your address is in a foreign country, enter the mailing address where indicated. Enter the foreign city, state/province and postal code in the City ﬁ eld. Abbreviate if necessary. Leave the State and ZIP Code ﬁ elds blank. Enter only the foreign country name in the "Foreign country" ﬁ eld.

# Qualiﬁ cation Number

Enter your federal EIN and Utah Incorporation/Qualiﬁ cation Number issued by the Department of Commerce in the appropriate ﬁ elds.

# Amended Returns

Do not submit a copy of your original return with your amended return.
To amend a previously ﬁ led return, use the tax forms and instructions for the year you are amending. Get prior year forms and instructions at tax.utah.gov/forms-pubs/previousyears.
Enter your current address on an amended return.
Amend your return if:

you discover an error on your Utah or federal return after it has been ﬁ led, or
your federal return is examined or adjusted by the IRS and the examination or adjustment aﬀ ects your Utah return.

You must amend your Utah return within 90 days of the IRS's ﬁ nal determination.
To qualify for a refund or credit, an amended return must be ﬁ led by the later of three years after the original return was due or two years from the date the tax was paid. A return ﬁ led before the due date is considered ﬁ led on the due date.
To amend a previously ﬁ led return, at the top of page 1, on the "Amended Return" line, enter the code number from the following list that best describes your Reason for Amending:
Reason-for-Amending Codes
Reason-for-Amending Codes
1 You ﬁ led an amended federal return with the IRS.
Attach a copy of your amended federal return.
2 You made an error on your Utah return. Attach an explanation of the error.
3 Your federal return was changed by an IRS examination or adjustment that aﬀ ects your Utah return. Attach a copy of the IRS adjustment.
4 Other. Attach an explanation to your return.
Enter the corrected ﬁ gures on the return and/or schedule.
Enter all other amounts as shown on your original return. If you received a refund on your original return, subtract the previous refund (exclude refund interest) from the amount of any tax paid with the original return and/or subsequent payments of the tax prior to ﬁ ling the amended return. Enter the net amount on Schedule A, page 2, line 30. Enter a net refund as a negative amount (preceded by a minus sign).

# Federal Form 8886

If you ﬁ led federal form 8886, Reportable Transactions Disclosure Statement, with the Internal Revenue Service, enter an "X" at the top of TC-20, where indicated.

# Subsection 59-7-303(3) Election

To make an irrevocable election to treat nonbusiness income resulting from the sale of intangible property as business income, enter an "X" at the top of TC-20, where indicated.
Attach a statement explaining the transaction and breaking down the total income between the sales of intangible and tangible property. See the instructions on page 20.

# Current Annual Report

If this corporation has ﬁ led a current annual report with the Division of Corporations, enter an "X" in the ﬁ eld to the right of the address block, where indicated.

# Line 1

Enter an "X" on line 1 if this corporation conducted business in Utah during the tax year.

# Line 2

Enter an "X" on line 2 if the federal form 1120 ﬁ led for the same tax period was a consolidated return.

# Line 3

Enter an "X" to indicate whether the return is: a. A water's edge combined report, or b. A water's edge election made under UCA §59-7-402(2), or c. A worldwide combined report.
See Combined Reports on page 3 for information on the proper ﬁ ling method.

# Line 4

Enter an "X" if an election has been made under IRC §§338, 338(h)(10) or 336(e). See IRC §§338, 338(h)(10) and 336(e) on page 4 for information about these elections.

# Line 5

Enter an "X" on line 5 if this corporation is, or includes, a ﬁ nancial institution as deﬁ ned in Tax Commission Rule R865-6F-32.

# Line 6

Enter the ultimate U.S. parent corporation's name and federal EIN.
Line 7 - Total Tax
Line 7 - Total Tax
Enter the total tax from Schedule A, page 2, line 27.
Line 8 - Total Refundable Credits and Line 8 - Total Refundable Credits and

# Prepayments

Enter the total refundable credits and prepayments from Schedule A, page 2, line 31.
Line 9 - Tax Due
Line 9 - Tax Due
If line 7 is larger than line 8, subtract line 8 from line 7.
Line 10 - Penalties and Interest Line 10 - Penalties and Interest Enter any penalties and interest that apply to this return. See Pub 58, Utah Interest and Penalties.
Line 11 - Total Due - Pay This Amount Line 11 - Total Due - Pay This Amount Add lines 9 and 10. Pay at tap.utah.gov, or send a check or money order with your return (make payable to the Utah State Tax Commission). Do not mail cash. The Tax Commission assumes no liability for loss of cash placed in the mail.
Line 12 - Overpayment
Line 12 - Overpayment
If line 8 is larger than the sum of line 7 and line 10, subtract the sum of line 7 and line 10 from line 8.
Line 13 - Amount of Overpayment to be Line 13 - Amount of Overpayment to be

# Applied to Next Tax Year

All or part of any overpayment shown on line 12 may be applied as an advance payment for the next tax year. Enter the amount to be applied (may not exceed the overpayment on line 12).
Line 14 - Refund
Line 14 - Refund
Subtract line 13 from line 12. This is the amount to be refunded to you.
Line 15 - Quarterly Estimated Prepayments Line 15 - Quarterly Estimated Prepayments

# Meeting Exception

Check any boxes corresponding to the four quarters to which a federal penalty exception applies. See Prepayment Requirements on page 2 for exceptions to the penalty on underpayments. Attach supporting documentation.

# Signature and Date Lines

Sign and date the return. We will not issue a refund without a signature.

# Paid Preparer Authorization

If the corporation wants to allow the Tax Commission to discuss this return with the paid preparer who signed it, enter an "X" in the box on the right-hand side of the signature area of the return where indicated.
This authorization applies only to the individual whose signature appears in the Paid Preparer's Section of the return.
It does not apply to the ﬁ rm, if any, shown in that section. If you enter an "X" in the box, the corporation is authorizing the Tax Commission to call the paid preparer to answer any questions that may arise during the processing of the return.
The paid preparer is also authorized to:

give the Tax Commission any information that is missing from the return;
call the Tax Commission for information about the processing of the return or the status of any refund or payment(s); and
respond to certain Tax Commission notices about math errors, oﬀ sets and return preparation.

The corporation is not authorizing the preparer to receive any refund, bind the entity to anything (including any additional tax liability), or otherwise represent the entity before the Tax Commission. The authorization will automatically end no later than the due date (without regard to extensions) for ﬁ ling next year's tax return.
If you want to expand the preparer's authorization, complete and submit form TC-737, Power of Attorney and Declaration of Representative (tax.utah.gov/forms). If you want to revoke the authorization before it ends, submit your request in writing to the Utah State Tax Commission, attention Taxpayer Services, 210 N 1950 W, SLC, UT 84134.

# Paid Preparer

The paid preparer must enter his or her name, address and PTIN in the section below the corporate oﬃ cer's signature on the return.

# Preparer Penalties

(UCA §§59-1-401(11)-(12))
(UCA §§59-1-401(11)-(12))
The person who prepares, presents, procures, advises, aids, assists or counsels another on a return, aﬃ davit, claim or similar document administered by the Tax Commission, and who knows or has reason to believe it may understate a tax, fee or charge is subject to both a civil penalty ($500 per document) and criminal penalties (second degree felony with a ﬁ ne from $1,500 to $25,000).

# Supplied by All Corporations

All corporations must complete the information on page 2 of the TC-20.

Schedule A - Utah Net Taxable Income and Tax Schedule A - Utah Net Taxable Income and Tax

# Calculation

Line 1 - Unadjusted Income/Loss Line 1 - Unadjusted Income/Loss Enter the federal taxable income from line 28 of your federal form 1120.
If any member of the unitary group is a "controlling entity of a captive real estate investment trust," include taxable income from line 21 of each federal form 1120-REIT on this line. A "controlling entity of a captive real estate investment trust" is an entity that:

is treated as an association taxable as a corporation under the Internal Revenue Code;
is not exempt from federal income tax under IRC §501(a); and
directly, indirectly or constructively holds more than 50 percent of the voting power or value of shares or beneﬁ cial interests of a captive real estate investment trust.

Line 2 - Additions to Unadjusted Income Line 2 - Additions to Unadjusted Income Enter the total additions from Schedule B, line 19.
Line 3 - Add line 1 and line 2 Line 3 - Add line 1 and line 2 Line 4 - Subtractions from Unadjusted Line 4 - Subtractions from Unadjusted

# Income

Enter the total subtractions from Schedule C, line 21.
Line 5 - Adjusted Income/Loss
Line 5 - Adjusted Income/Loss
Subtract line 4 from line 3.
Line 6 - Utah Net Nonbusiness Income Line 6 - Utah Net Nonbusiness Income Enter the nonbusiness income allocated to Utah from Schedule H, line 14.
Line 7 - Non-Utah Net Nonbusiness Income Line 7 - Non-Utah Net Nonbusiness Income Enter the nonbusiness income allocated outside Utah from Schedule H, line 28.
Line 8 - Total Nonbusiness Income Line 8 - Total Nonbusiness Income Add line 6 and line 7.
Line 9 - Apportionable Income/Loss Before Line 9 - Apportionable Income/Loss Before

# Contributions Deduction

Subtract line 8 from line 5.
Line 10 - Utah Contributions Deduction Line 10 - Utah Contributions Deduction Enter the amount of Utah contributions allowable for the tax year from Schedule D, line 6.
Line 11 - Apportionable Income/Loss Line 11 - Apportionable Income/Loss Subtract line 10 from line 9.
Line 12 - Apportionment Fraction (Decimal) Line 12 - Apportionment Fraction (Decimal) Enter 1.000000, or the fraction (decimal) from Schedule J, line 9 or 10, if applicable.
Line 13 - Apportioned Income/Loss Line 13 - Apportioned Income/Loss Multiply the apportionable income on line 11 by the apportionment fraction on line 12.
Line 14 - Utah Net Nonbusiness Income Line 14 - Utah Net Nonbusiness Income Enter the amount from line 6, above.
Line 15 - Utah Income/Loss Before Utah Line 15 - Utah Income/Loss Before Utah

# Net Loss Deduction

Add line 13 and line 14.
Line 16 - Utah Net Loss Carried Forward Line 16 - Utah Net Loss Carried Forward from Prior Years from Prior Years Enter Utah net operating loss carried forward from the prior year.
Losses may not exceed 80 percent of your Utah taxable income on line 15.
Attach documentation to the return to support the losses.
Line 17 - Net Utah Taxable Income/Loss Line 17 - Net Utah Taxable Income/Loss Subtract line 16 from line 15.
Line 18 - Tax Amount
Line 18 - Tax Amount
Enter the greater of line 18a or line 18b.

# Line 18a

Multiply line 17 by 4.5% (.045). Do not enter an amount less than zero.

# Line 18b

Enter the total minimum tax from Schedule M, line b. If Schedule M does not apply, enter $100.
Line 19 - Interest on Installment Sales Line 19 - Interest on Installment Sales Generally, interest must be paid on the deferred tax related to installment sales if the contract was entered into on or after
Jan. 1, 1994.
The interest rate must be determined according to IRC §453A.
Enter the interest as an additional tax on Schedule A, line 19.
The deferred tax liability for Utah purposes must be calculated in a manner similar to that outlined in IRC §453A(c), except:

The tax rate applied must be 4.5 percent; and
In the case of multi-state corporations, the amount of Utah gain that has not been recognized must be determined by multiplying the deferred gain that has not been recognized for federal purposes by the current year apportionment fraction. Line 20 - Current Year IRC §965(a) Line 20 - Current Year IRC §965(a)

# Installment Amount

If you were liable for Utah tax on deferred foreign income described in IRC §965(a) and you chose to pay the tax in eight yearly installments, enter the current-year installment amount on line 20. The installment is a percentage of the total Utah tax due, as reported on line 17 of form TC-20R.

Installment Table
Installment Table
First installment: 8% (paid with TC-20R) Second Installment: 8% Third installment: 8% Fourth installment: 8% Fifth installment: 8% Sixth installment: 15% Seventh installment: 20% Eighth installment: 25% Line 21 - Recapture of Low-Income Line 21 - Recapture of Low-Income

# Housing Credit

Use these codes for lines 24a through 24f
Use these codes for lines 24a through 24f
06 Historic Preservation Credit 12 Credit for Increasing Research Activities in Utah 15 Utah Municipal, U.S. and Agency Bond Interest Credit 21 Carryforward of Renewable Residential Energy Systems Credit
AF Guaranty Association Assessment Credit
AG Carson Smith Opportunity Scholarship
Program Credit
AW Employer-provided Childcare Construction Credit
AX Employer-provided Childcare Expenses Credit Owners of a low-income housing project and other taxpayers who have taken the low-income housing credit and disposed
(06) Historic Preservation Credit (UCA §59-7-609)
(06) Historic Preservation Credit (UCA §59-7-609) of the building or an ownership interest may be required to recapture any credits that reduced their tax liability in a pre- Complete form TC-40H, Historic Preservation Tax Credit with vious year. If you are required to recapture a portion of your the State Historic Preservation Oﬃ ce certiﬁ cation verifying the federal low income housing credit, you must also recapture a portion of your Utah low income housing credit.
Complete the following worksheet.
Tax from Recapture of Low-Income
Tax from Recapture of Low-Income
Housing Credit Worksheet
Housing Credit Worksheet

Federal net recapture tax

(federal form 8611, line 10) 1 __

Credits subject to recapture (federal form 8611, line 3) 2 __
Divide line 1 by line 2 3 __
Total low-income housing credits actually taken over the life of the project on all Utah returns 4 __
Total - multiply line 3 by line 4 5 __ Enter this amount on Schedule A, line 21. credit is approved. Do not send form TC-40H with your return.

Keep this form and all related documents with your records to provide the Tax Commission upon request.
The credit is for restoration costs of any residential certiﬁ ed historic building. Unused credits may be carried forward ﬁ ve years as a credit against Utah tax due.
For more information, contact:
Utah State Historic Preservation Oﬃ ce 3760 S Highland Drive Salt Lake City, UT 84106 801-245-7277 ushpo.utah.gov/shpo/ﬁ nancial-incentives/
(12) Credit for Increasing Research Activities in Utah
(12) Credit for Increasing Research Activities in Utah
(UCA §59-7-612)
(UCA §59-7-612)
The credit is:

5 percent of your qualiﬁ ed expenses for increasing research activities in Utah above a base amount,
5 percent of certain payments made to a qualiﬁ ed organization increasing basic research in Utah above a base Attach a schedule showing the calculation of the credit recaptured.

Line 22 - Total Tax
Line 22 - Total Tax amount, and

7.5 percent of your qualiﬁ ed research expenses in Utah for the current tax year.

Add the amounts on lines 18, 19, 20 and 21. Carry this total to Schedule A, page 2, line 23.

# Line 23

Enter the total tax from Schedule A, page 1, line 22.

Line 24 - Nonrefundable Credits

# Line 24 - Nonrefundable Credits

Note: Any credit for 1 or 2 above that is more than the tax liability may be carried forward for the next 14 years. Any credit for 3 above may not be carried forward.
There is no form for this credit. Keep all related documents with your records.
(15) Utah Municipal, U.S. and Agency
(15) Utah Municipal, U.S. and Agency

Bond Interest Credit

# Bond Interest Credit

Nonrefundable credits cannot be used to pay the minimum tax and cannot result in a refund. (UCA §59-7-601) (UCA §59-7-601) You may claim a credit of 1 percent of Utah municipal inter-If you claim any of the following nonrefundable credits, write est and federal interest included in Utah taxable income. For the code and amount of each credit you claim on lines 24a multi-state corporations, the amount of Utah municipal and through 24f. Enter the sum of all nonrefundable credits on line federal interest included in Utah taxable income is calculated

An explanation of each nonrefundable credit is listed below. by multiplying the total amount of that interest by the current year apportionment fraction.

Attach a schedule showing the calculation of the credit. Keep a copy of the schedule and all related documents with your records.

Note: Any credit that is more than the tax liability may be carried back to the previous three years, or carried forward for ﬁ ve years.
(21) Carryforward of Renewable Residential Energy
(21) Carryforward of Renewable Residential Energy

Systems Credit

# Systems Credit

(UCA §59-7-614)
(UCA §59-7-614)
The renewable residential energy systems credit is no longer available. The four-year carryforward remains for credit earned before 2022. If you have unused credit from a year prior to 2022, you may carry it forward through tax year 2025 or until the credit is used up (whichever comes ﬁ rst). The carryforward must not be more than your tax liability in the year you claim it.
You may not claim this carryforward if you are claiming the credit described in UCA §59-7-614.8.
(AF) Guaranty Association Assessment Credit
(AF) Guaranty Association Assessment Credit
(UCA §59-7-623)
(UCA §59-7-623)
An insurer that is not subject to the premium tax on health care insurance may claim a nonrefundable tax credit equal to 20 percent of a guaranty association assessment payment for each of the ﬁ ve years following the assessment.
Note: Any credit that is more than the tax liability may be carried forward.
(AG) Carson Smith Opportunity Scholarship
(AG) Carson Smith Opportunity Scholarship

Program Credit

# Program Credit

(UCA §59-7-625)
(UCA §59-7-625)
You may claim a credit for a donation made to the Carson Smith Opportunity Scholarship Program. You will receive a tax credit certiﬁ cate from the program, listing the amount of the credit. You may not claim this credit if you claimed the donation as an itemized deduction on your federal return.
Do not send the certiﬁ cate with your return. Keep the certiﬁ cate and all related documents with your records.
Warning: If you take this credit, do not also subtract it as a charitable contribution on TC-20 Schedule D.
Note: You may carry back one year or forward for the next three years any credit that is more than your tax liability.
(AW) Employer-provided Childcare Construction Credit
(AW) Employer-provided Childcare Construction Credit
(UCA §59-7-627(2))
(UCA §59-7-627(2))
WARNING: You do not qualify for this credit unless you ! are an employer who is taking the federal employerprovided childcare tax credit (IRC Sec. 45F) this tax year.
A qualifying employer may claim a tax credit that is 20 percent of the cost to acquire, build, rehabilitate or expand a qualiﬁ ed childcare center during the tax year.
Recapture
Recapture
If you do not operate the childcare center for at least ﬁ ve consecutive years after taking this credit, you must repay a percentage of it. The repayment must occur in the same tax year you stop providing childcare. The percentage to repay is as follows:

100 percent if you stop providing childcare within two years.
75 percent if you stop providing childcare within three years.
50 percent if you stop providing childcare within four years.
25 percent if you stop providing childcare within ﬁ ve years.

Note: You may carry forward for the next ﬁ ve years any credit that is more than your tax liability.
There is no form for this credit. Keep all related documents with your records.
(AX) Employer-provided Childcare Expenses Credit
(AX) Employer-provided Childcare Expenses Credit
(UCA §59-7-627(3))
(UCA §59-7-627(3))
WARNING: You may only claim this credit if you have ! already claimed the Employer-provided ChildCare Construction Credit (credit AW).
A qualifying employer may claim a tax credit that is 10 percent of the costs to operate a qualiﬁ ed childcare center during the tax year.
Recapture
Recapture
If you do not operate the childcare center for at least ﬁ ve consecutive years, you must repay a percentage of the total credit taken. The whole repayment must occur in the same tax year you stop providing childcare. The percentage to repay is as follows:

100 percent if you stop providing childcare within two years.
75 percent if you stop providing childcare within three years.
50 percent if you stop providing childcare within four years.
25 percent if you stop providing childcare within ﬁ ve years.

Note: You may not carry forward or back any credit that is more than your tax liability.
There is no form for this credit. Keep all related documents with your records.

Line 25 - Net Tax

Line 25 - Net Tax
Subtract line 24 from line 23. Enter the result, but not less than the minimum tax shown on line 18b or less than zero.

Line 26 - Utah Use Tax

# Line 26 - Utah Use Tax

Use tax is a tax on goods and taxable services purchased for use, storage or other consumption in Utah. Use tax applies only if sales tax was not paid at the time of purchase. If you purchased an item from an out-of-state seller (including Internet, catalog, radio and TV purchases) and the seller did not collect sales tax on that purchase, you must pay the use tax directly to the Tax Commission.
If you have a Utah sales tax license/account, report the use tax on your sales tax return. If you do not have a Utah sales tax license/account, report the use tax on line 26 of TC-20, Schedule A.
You may take a credit for sales or use tax paid to another state (but not a foreign country). If the other state's tax rate is lower than Utah's, you must pay the diﬀ erence. If the other state's tax rate is more than Utah's, no credit or refund is given. If sales tax was paid to more than one state, complete the Use Tax Worksheet below for each state. Add lines 8 on all worksheets and enter the total on line 26.
Sales and use tax rates vary throughout Utah. Use the Use Tax Rate Chart below to get the rate for the location where the merchandise was delivered, stored, used or consumed.
Use the county tax rate if the city is not listed.

Grocery food bought through the Internet or catalog is taxed

# Use Tax Worksheet

at 3 percent. The grocery food must be sold for ingestion

Amount of purchases (except grocery food) or chewing by humans and consumed for the substance's taste or nutritional value. The reduced rate does not apply to subject to use tax 1 __ alcoholic beverages or tobacco. See Pub 25, Sales and Use
Use tax rate

Tax, at tax.utah.gov/forms.
(decimal from Use Tax Rate Chart) 2 .

Multiply line 1 by line 2 3 __ Use Tax Rate Chart (Effective Dec. 31, 2025) .0635 Beaver County .0845 Conv. Centr. Zone, Fairpark
Amount of grocery food purchases subject to use tax 4 __

Beaver City, UIPA Min. Mt - .0735

Beaver City .0665 Box Elder County Dist., Inland Port SLC, Salt Lake City, SLC Conv.

Hotel, SLC HTRZ

Multiply line 4 by 3% (.03) 5 _ Brigham City, Mantua, Perry, .0695 .1005 MIDA MVP - SLC 6. Add line 3 and line 5 6 _ Willard, MIDA NG - Brigham, UIPA GS - Brigham .0765 Snowville .0700 Cache County .0635 .0675 .0745 .0635 .0645

San Juan County

Blanding, Monticello
Bluff

Sanpete County

Centerfield, Mayfield

Credit for sales tax paid to another state on use tax purchases 7 __
Use tax due (subtract line 7 from line 6) 8 __

Cache Valley Transit, Hyde .0725 Park, Lewiston, Millville .0675 Ephraim, Fairview, Gunnison, (If less than zero, enter "0.") Hyrum, Logan, Nibley, N. Logan, .0730 Mt. Pleasant, Providence, Richmond, River Heights, Smithfield, MIDA NG - Logan .0635 Carbon County .0645 Helper .0675 Price .0665 Wellington, UIPA CC - Wellington .0765 Daggett County .0875 Dutch John .0715 Davis County .0725 .0665 .0665 .0675 .0695 .0705 .0765 .0955 .0795 .0660 .0690

MIDA NG - Mt. Pleasant

Manti, Sterling, MIDA NG - Manti

Sevier County

Aurora, Redmond

Koosharem, Monroe
Richfield, Salina, MIDA NG - Richfield

Summit County

Park City

Snyderville Basin Transit

Tooele County

Erda, Lakepoint City, Lakepoint

Line 27 - Total Tax

Line 27 - Total Tax
Add line 25 and line 26. Carry this amount to TC-20, page 1, line 7.

Line 28 - Refundable Credits

Line 28 - Refundable Credits
Bountiful, Centerville, Clearfield,

# Transit, Lincoln, Stansbury Park

Add lines 28a through 28d.
Clinton, Farmington, Kaysville, .0700 Grantsville, Tooele City, Layton, N. Salt Lake, S. Weber, Syracuse, W. Bountiful, Woods Cross .0635 Duchesne County .0645 Duchesne City .0675 Roosevelt .0635 Emery County .0825 .0645 .0695 .0735 .0745 MIDA NG - Tooele City, UIPA Twenty Wells

Uintah County

Naples, Vernal

Utah County

# Alpine, American Fork, Cedar

Hills, Highland, Lehi, Lindon, Claim any of the following refundable credits that apply. Write the code and amount of each credit you are claiming on lines 28a through 28d. Enter the sum of these credits on line 28.
Each refundable credit is explained below.
Green River, UIPA CC - Gr. River .0735 Garfield County .0835 Boulder, Panguitch, Tropic .0855 Bryce Canyon .0845 Escalante, Hatch .0685 Grand County .0885 Moab .0665 Iron County .0865 Brian Head .0675 Cedar City, Parowan, MIDA NG - Cedar City .0665 Juab County .0695 Eureka .0705 Mona, Nephi .0700 Santaquin South .0735 Kane County .0845 Kanab .0835 Orderville .0635 Millard County .0895 .0725 .0755 .0835 .0865 .0915 Mapleton, MIDA NG - Lehi, MIDA NG - American Fork, MIDA NG - Spanish Fork, Orem, Payson, Pleasant Grove, Provo, Santaquin, Saratoga Springs, Spanish Fork, Springville, Vineyard, ULA Lehi, ULA

Lindon, ULA Provo, ULA

Vineyard, Vineyard HTRZ
MIDA MVP - Ut. Co.

Wasatch County
Heber
Independence, Mil. Rec.
Wasatch, Mil. Rec. Hideout,
Mil. Rec. MWR Hotel, Mil. Rec. GAEC PID Midway

Park City East
Codes for lines 28a through 28d
Codes for lines 28a through 28d

39 Renewable Commercial Energy Systems Credit

43 Pass-through Entity Withholding Tax Credit

46 Mineral Production Withholding Tax Credit

47 Agricultural Oﬀ -highway Gas/Undyed Diesel

Fuel Credit

48 Farm Operation Hand Tools Credit
(39) Renewable Commercial Energy Systems Credit
(39) Renewable Commercial Energy Systems Credit
(UCA §59-7-614)
(UCA §59-7-614)

Get form TC-40E, Renewable Residential and Commercial

Energy Systems Tax Credits, from the Governor's Oﬃ ce of Energy Development with their certiﬁ cation stamp. Do not

Fillmore, MIDA NG - Fillmore, .0675 UIPA HC - Fillmore .0665 Scipio .0670 Morgan County .0695 Morgan City .0635 Piute County .0665 Rich County .0825 Garden City .0745 Salt Lake County .0905 Alta .0855 Brighton .0765 .0645 .0675 .0805 .0745 .0765 .0795 .0725 .0745

Washington County
Hurricane, Ivins, La Verkin,
St. George, Santa Clara,
Washington City, MIDA NG - St. George Springdale Virgin

Wayne County

Bicknell, Loa, Torrey

# Weber County

Falcon Hill Riverdale, Riverdale send this form with your return. Keep the form and all related documents with your records to provide the Tax Commission upon request.
You may not claim this credit if you are claiming the credit described in UCA §59- 7-614.8.
For more information, contact:

# Governor's Oﬃ ce of Energy Development (OED)

PO Box 144845
Murray, So. S.L., So. S.L. HTRZ .0825 Huntsville Salt Lake City, UT 84114 801-538-8682 energy.utah.gov/renewable-energysystems-tax-credit

(43) Pass-through Entity Withholding Tax Credit
(43) Pass-through Entity Withholding Tax Credit
(UCA §59-7-614.4)
(UCA §59-7-614.4)
If a pass-through entity is required to withhold Utah income tax on any income attributable to this corporation under §59-10-1403.2, the pass-through entity must provide a Utah Schedule K-1 showing the amount of Utah withholding paid on behalf of this corporation. Enter this amount as a refundable credit using code 43.
Attach copies of Utah Schedule K-1(s) to the return to receive proper credit.
(46) Mineral Production Withholding Tax Credit
(46) Mineral Production Withholding Tax Credit
(UCA §59-6-102)
(UCA §59-6-102)
Enter the total of the mineral production tax withheld as shown on forms TC-675R or Utah Schedule K-1(s) for the tax year.
For a ﬁ scal year corporation, the credit is claimed on the corporate return that is required to be ﬁ led during the year following the December closing period of the form TC-675R.
Attach copies of form TC-675R or Utah Schedule K-1(s) to the return to receive proper credit.
(47) Agricultural Oﬀ -Highway Gas/Undyed
(47) Agricultural Oﬀ -Highway Gas/Undyed

Diesel Fuel Credit

# Diesel Fuel Credit

(UCA §59-13-202)
(UCA §59-13-202)
You may claim a credit of 38.5 cents per gallon for motor fuel and undyed diesel fuel bought in Utah during 2025 and used to operate stationary farm engines and self-propelled farm machinery used solely for commercial non-highway agricultural use if the fuel was taxed at the time it was bought.
This does not include golf courses, horse racing, boat operations, highway seeding, vehicles registered for highway use, hobbies, personal farming and other non-agricultural use.
Credit calculation:
Credit calculation:

# Gallons _ x .385 = Credit _

There is no form for this credit. Keep all related documents with your records to provide the Tax Commission upon request.
(48) Farm Operation Hand Tools Credit
(48) Farm Operation Hand Tools Credit
(UCA §59-7-614.1)
(UCA §59-7-614.1)
This credit is for sales and use tax paid on hand tools purchased and used or consumed primarily and directly in a farming operation in Utah. The credit only applies if the purchase price of a tool is more than $250.
There is no form for this credit. Keep all related documents with your records to provide the Tax Commission upon request.

Line 29 - Prepayments from Schedule E

# Line 29 - Prepayments from Schedule E

Credit is allowed for advance payments made as quarterly estimated tax payments, prepayments and extension payments (form TC-559). Include any overpayment from a prior year that was applied to this year. Use Schedule E to compute the total prepayment.

Line 30 - Amended Return Only

# Line 30 - Amended Return Only

This line is only for amended returns. Enter the amount of tax paid with the original return and/or subsequent payments made prior to ﬁ ling this amended return less any previous refunds (exclude refund interest). Enter a net refund as a negative amount (preceded by a minus sign).

Line 31 - Total Refundable Credits and

# Prepayments

Add lines 28 through 30. Carry this amount to TC-20, page 1, line 8.

Schedule B - Additions to Unadjusted Income Schedule B - Additions to Unadjusted Income Line 1 - Interest from State Obligations Line 1 - Interest from State Obligations Enter interest from bonds, notes and other evidences of indebtedness issued by any state of the United States, including any agency and instrumentality of a state of the United States.
Lines 2a - 2e - Add Taxes Deducted to

# Determine Income

Amounts included in federal taxable income from refunds of the following taxes should be netted against similar taxes on the appropriate lines.
Line 2a - Income Taxes Paid to Any State Line 2a - Income Taxes Paid to Any State Enter taxes imposed by and paid to any state that are measured by income.
Line 2b - Franchise or Privilege Taxes Paid Line 2b - Franchise or Privilege Taxes Paid to Any State to Any State Enter franchise taxes paid by a corporation to any state for the privilege of doing business or exercising its corporate franchise.
Line 2c - Corporate Stock Taxes Paid Line 2c - Corporate Stock Taxes Paid to Any State to Any State Enter corporate stock taxes paid to any state.
Line 2d - Taxes Paid to a Foreign Country Line 2d - Taxes Paid to a Foreign Country Enter any income, franchise, or capital stock taxes imposed by a foreign country, a United States possession or the Commonwealth of Puerto Rico and paid during the tax year.
Line 2e - Business and Occupation Taxes Paid Line 2e - Business and Occupation Taxes Paid to Any State to Any State Enter business and occupation taxes deducted for federal purposes.
Line 3 - Safe Harbor Lease (SHL) Line 3 - Safe Harbor Lease (SHL)

# Adjustments

SHLs originated from adjustments primarily available to businesses during the years 1981 and 1982 under ERTA. These provisions allowed transfers of certain tax beneﬁ ts for federal tax purposes. However, Utah did not adopt these provisions, and the eﬀ ects of any remaining SHL adjustments must be reversed for Utah purposes.
Add to income:
Add to income:
SHL Purchaser/Lessor

Interest expense
Depreciation claimed on SHL property

SHL Seller/Lessee

Amount of gain on the sale of federal tax beneﬁ ts
Rental expense on SHL property Line 4 - Capital Loss Carryover Line 4 - Capital Loss Carryover Enter any capital losses deducted on a Utah corporate return in previous years but used to oﬀ set capital gains on this year's federal return.

Line 5 - Federal Deductions Taken Previously Line 5 - Federal Deductions Taken Previously on a Utah Return on a Utah Return Enter any deduction on this year's federal return that was deducted on a prior year Utah return.
Line 6 - Federal Charitable Contributions Line 6 - Federal Charitable Contributions Enter any federal charitable contributions from federal form 1120, line 19.
Line 7 - Gain/Loss on Sections Line 7 - Gain/Loss on Sections 338(h)(10) or 336(e) 338(h)(10) or 336(e) Enter the amount of any gain or loss determined under UCA §59-7-114(3) regarding a target corporation under IRC §338, if that gain or loss has not been included in income, and the amount of any gain or loss determined under UCA §59-7-115 regarding corporations treated for federal purposes as having disposed of its assets under IRC §336(e), if that gain or loss has not been included in income.
The purpose of this addition is to make sure the gain or loss on IRC §§338(h)(10) and 336(e) transactions are treated similarly for Utah and federal purposes as a deemed sale of assets. The gain or loss is only added if it has not already been included in income.
Line 8 - Adjustments Due to Basis Diﬀ erence Line 8 - Adjustments Due to Basis Diﬀ erence Utah laws generally follow the Internal Revenue Code for depreciation, amortization and basis. However, basis diﬀ erences occasionally arise due to diﬀ erences between Utah and federal laws in limited instances. Some examples include the sale of an asset for which an IRC §338 election was made in a tax year beginning prior to Jan. 1, 1994 (Utah did not follow IRC §§338 or 338(h)(10) for tax years prior to 1994); and adjustments attributed to the federal consolidated rules under IRC §1502. A company may not deduct basis diﬀ erences generated by errors in prior returns in years when Utah and federal depreciation or amortization amounts are required to be the same.
Line 9 - Expenses Attributable to 50 percent Line 9 - Expenses Attributable to 50 percent

# Unitary Foreign Dividend Exclusion

Enter any expenses directly and indirectly attributable to the dividends from subsidiaries excluded on Schedule C, line 7 (i.e., 50 percent exclusion of dividends from unitary foreign subsidiaries). To calculate indirect interest expense attributable to excluded dividends:

Divide the taxpayer's average investment in dividend paying subsidiaries by the taxpayer's average investment in total assets.
Multiply the result by the total interest expense.

Line 10 - Installment Sales Income Previously Line 10 - Installment Sales Income Previously

# Purposes

Add any installment sales income from installment sales made in tax years beginning before Jan. 1, 1994, if the Utah installment provisions of former UCA §59-7-119 were used. If the Utah installment provisions were used on the Utah return, then a timing diﬀ erence was created between federal and Utah.

Line 11 - Nonqualiﬁ ed Withdrawal from Utah Line 11 - Nonqualiﬁ ed Withdrawal from Utah my529 Account (UCA §59-7-105(10)) my529 Account (UCA §59-7-105(10)) If you withdrew an amount from a Utah my529 account but did not use it for qualiﬁ ed education expenses, and the withdrawal did not meet an exception under IRC §529(c) or §530(d), enter that amount to the extent the amount was deducted on the current or a previously ﬁ led Utah tax return.
If you are a my529 account owner, you will receive form TC-675H, my529 Tax Statement for Contributions, Withdrawals, and Transfers, from my529. Keep this form with your records. If you have any questions about my529 accounts, call my529 at 800-418-2551, or visit my529.org.
Line 12 - Income/Loss From IRC Section 936 Line 12 - Income/Loss From IRC Section 936

# Corporations

IRC §936 corporations are fully includable in the combined report. Add any income or loss from IRC §936 corporations.
Line 13 - Foreign Income/Loss For Worldwide Line 13 - Foreign Income/Loss For Worldwide

# Combined Filers

Corporations electing to ﬁ le a worldwide combined report must include income and losses of each corporation in the unitary group regardless of the country in which the corporation is incorporated or conducts business. Add any income or loss before extraordinary items and prior period adjustments and before the provision for income, war proﬁ ts and excess proﬁ ts taxes as reported on federal form 5471 for foreign corporations.
Line 14 - Income/Loss of Unitary Corporations Line 14 - Income/Loss of Unitary Corporations

# Return

Add any income and loss of unitary corporations owned greater than 50 percent whose income or loss is not included on the federal consolidated return. See Combined Reports on page 3 for additional information on unitary combined ﬁ lings.
Line 15 - Deductions for a Royalty or Other Line 15 - Deductions for a Royalty or Other

# Common Ownership

Enter the amount of any deduction taken on a Utah return for a royalty or other expense that a corporation pays to an entity related by common ownership for the use of an intangible asset where the intangible asset is owned by the entity, unless the entity is subject to income taxes on the royalty or other expense in Utah, another state or a foreign government that has an income tax treaty with the United States in the same tax year.
Line 16 - Payroll Protection Program Grant or Line 16 - Payroll Protection Program Grant or

# Loan Addback

If you received a COVID-19 Payroll Protection Program (PPP) grant or loan, enter any amount that:

was forgiven during the 2025 tax year,
is exempt from federal income tax, and
you used for expenses that you deducted on your federal tax return.

If you own an interest in an LLC, partnership, S corporation or trust that received a PPP grant or loan meeting these requirements, include your distributed share on this line. (See the "Other Income" line of Utah Schedule K-1 received from the LLC, partnership, S corporation or trust.) Line 17 - RESERVED Line 17 - RESERVED Line 18 - RESERVED Line 18 - RESERVED Line 19 - Total Additions Line 19 - Total Additions Add lines 1 through 18. Enter the result on line 19 and on Schedule A, line 2.

Schedule C - Subtractions from Unadjusted Income Schedule C - Subtractions from Unadjusted Income Line 1 - Intercompany Dividend Elimination Line 1 - Intercompany Dividend Elimination Enter dividends received from U.S. corporations owned greater than 50 percent whose income is included on this return and whose dividend has not been previously eliminated.
Line 2 - Foreign Dividend Gross-up Line 2 - Foreign Dividend Gross-up Enter the foreign dividend gross-up included in gross income for federal income tax purposes under IRC §78.
Line 3 - Net Capital Loss
Line 3 - Net Capital Loss
You must enter your capital losses if you elected to take a deduction for capital losses incurred in the tax year. If a current year deduction is not taken, you must carry the loss forward as provided in IRC §1212(a)(1)(B) and (C).
Line 4a - Federal Jobs Credit Salary Reduction Line 4a - Federal Jobs Credit Salary Reduction Enter the amount of any salary expense reduction due to claiming the federal jobs credit under IRC §51.
Line 4b - Federal Research and Development Line 4b - Federal Research and Development

# Credit Expense Reduction

Enter any qualiﬁ ed research and basic research expense reduction due to claiming the research and development credit under IRC §41.
Line 4c - Federal Orphan Drug Credit Clinical Line 4c - Federal Orphan Drug Credit Clinical

# Testing Expense Reduction

Enter any qualiﬁ ed clinical testing expense reduction due to claiming the federal orphan drug credit under IRC §45C.
Line 4d - Expense Reduction for Other Federal Line 4d - Expense Reduction for Other Federal

# Credits

Enter any expense reduction attributable to claiming any other federal credit. Attach applicable federal form.
Line 4e - Federal Qualiﬁ ed Tax Credit Bond Line 4e - Federal Qualiﬁ ed Tax Credit Bond

# Credit, Income Increase

Enter any increase in interest income for federal tax purposes due to claiming the qualiﬁ ed tax credit bond credit under IRC §54A.
Line 4f - Federal Qualiﬁ ed Zone Academy Line 4f - Federal Qualiﬁ ed Zone Academy

# Bond Credit, Income Increase

Enter any gross income increase for federal tax purposes due to claiming the qualiﬁ ed zone academy bond credit under IRC §1397E.
Line 5 - Safe Harbor Lease (SHL) Line 5 - Safe Harbor Lease (SHL)

# Adjustments

You must reverse the eﬀ ects of any remaining SHL adjustments for Utah purposes. For general SHL information, see the instructions for Schedule B, line 3.
Subtract from income:
Subtract from income:
SHL Purchaser/Lessor

Rental income
Amortization of the purchase price of tax beneﬁ ts (purchase price of tax beneﬁ ts must be capitalized)

SHL Seller/Lessee

Interest income
Depreciation on SHL property Line 6 - Federal Income Previously Line 6 - Federal Income Previously

# Taxed by Utah

Enter any income on the federal corporate return, form 1120, that was previously taxed by Utah. Attach supporting schedules and documentation.
Line 7 - Fifty percent Exclusion for Dividends Line 7 - Fifty percent Exclusion for Dividends from Unitary Foreign Subsidiaries from Unitary Foreign Subsidiaries Enter 50 percent of the dividends received or deemed received from subsidiaries that are members of the unitary group and are organized or incorporated outside of the United States, unless those subsidiaries are included in a combined report.
In that case, the dividends are eliminated as an intercompany transaction on line 1.
For corporations ﬁ ling a water's edge combined report, the 50-percent exclusion includes dividends from unitary foreign corporations, IRC Section 965(a) income, IRC 951A (GILTI) income, and subpart F income.
Line 8 - Fifty percent Exclusion of Foreign Line 8 - Fifty percent Exclusion of Foreign

# Operating Company Income/Loss

If you are ﬁ ling a water's edge combined report, enter 50 percent of the adjusted income or loss of a foreign operating company. The exclusion is determined after:

the removal of all intercompany transactions between the foreign operating company and any other entity within the water's edge group,
the exclusion of all income generated from intangible property, and
the exclusion of all income from assets held for investment and not from a regular business trading activity.

A foreign operating company is a corporation (other than an IRC §936 corporation) incorporated in the United States with 80 percent or more of its business activity, based on the average of the property and payroll factors, conducted outside the United States, and which has at least:

$1,000,000 of payroll (as included in the payroll factor) located outside of the United States, and
$2,000,000 of property (as included in the property factor) located outside of the United States.

Line 9 - Gain/Loss on Certain Stock Sales Line 9 - Gain/Loss on Certain Stock Sales Enter the gain or loss on the sales of stock included in taxable income, yet not taxable for federal purposes because the transaction is considered to be a deemed sale of assets under IRC §§338(h)(10) or 336(e).
The purpose of this subtraction is to avoid the double taxation that would occur if both the gain on the stock sale and the gain on the deemed sale of assets were included in income.
Utah law follows the federal statute that taxes the gain on the deemed sale of assets.

Line 10 - Adjustments Due to Basis Diﬀ erence Line 10 - Adjustments Due to Basis Diﬀ erence Enter adjustments to gains, losses, depreciation expense, amortization expense and similar items due to a diﬀ erence between basis for federal and Utah purposes as explained in instructions for Schedule B, line 8.
Line 11 - Interest Expense
Line 11 - Interest Expense
Enter interest expense not deducted on the federal corporate return under IRC §§265(b) or 291(e).
Line 12 - Dividends from Admitted Insurance Line 12 - Dividends from Admitted Insurance

# Company Subsidiaries

Enter dividends received from admitted insurance company subsidiaries exempt under UCA §59-7-102(1)(c).
Line 13 - Contributions to Utah my529 Line 13 - Contributions to Utah my529

# Account(s) (UCA §59-7-106(1)(r))

If a qualiﬁ ed contribution was made to your my529 account, you may claim a deduction on line 13. To qualify, the contribution must be made during the tax year and not deducted on your federal return.
If you are a my529 account owner, you will receive form TC-675H, my529 Tax Statement for Contributions, Withdrawals, and Transfers, from my529. Enter on line 13 the amount from form TC-675H, box 1C.
Keep form TC-675H with your records. If you have any questions about my529 accounts, call my529 at 1-800-418-2551, or visit my529.org.
Line 14 - RESERVED
Line 14 - RESERVED
Line 15 - Dividends Received from a Captive Line 15 - Dividends Received from a Captive

# Member of the Unitary Group

If any member of the unitary group is a "controlling entity of a captive real estate investment trust," include the dividends received or deemed received from each captive real estate investment trust.
Line 16 - IRC Section 857(b)(2)(E) Deduction Line 16 - IRC Section 857(b)(2)(E) Deduction from a Captive REIT from a Captive REIT Enter the amount of any federal deduction taken under IRC §857(b)(2)(E) on federal form 1120-REIT for each captive real estate investment trust included in the Utah combined group.
Line 17 - FDIC Payments
Line 17 - FDIC Payments
Enter any FDIC premiums that were not allowed as a deduction on the federal return under IRC §162(r).
Lines 18-20 - RESERVED
Lines 18-20 - RESERVED
Line 21 - Total Subtractions
Line 21 - Total Subtractions
Add lines 1 through 20. Enter the result on line 21 and on Schedule A, line 4.
Schedule D - Utah Contributions Deduction Schedule D - Utah Contributions Deduction Utah allows a deduction for charitable contributions (UCA §59-7-109).
Line 1 - Apportionable Income Before Line 1 - Apportionable Income Before

# Contributions Deduction

Enter amount from Schedule A, line 9. If this is a loss, no contribution deduction is allowed.

Line 2 - Utah Contribution Limitation

# Line 2 - Utah Contribution Limitation

Charitable contributions for the current year, including excess contributions carried forward from a prior year, cannot exceed 10 percent of the apportionable income before contributions.
(See UCA §59-7-109(2).)
Multiply line 1 by 10% (.10) and enter the limitation amount.

Line 3 - Current Year Contributions

# Line 3 - Current Year Contributions

Enter charitable contributions made for the current year.

Line 4 - Utah Contribution Carryforward

# Line 4 - Utah Contribution Carryforward

Charitable contributions which exceed the allowable deduction for Utah may be carried forward to the ﬁ ve succeeding tax years in the same manner as allowed under federal law.
Enter the excess Utah contributions carried forward to this tax year. Attach a schedule showing contributions made that exceed the Utah contribution limitation and that have not been previously deducted and are available to be carried forward to the current year.

Line 5 - Total Contributions Available

# Line 5 - Total Contributions Available

Add line 3 and line 4.

Line 6 - Utah Contributions Deduction

# Line 6 - Utah Contributions Deduction

Enter the lesser of line 2 or line 5 here and on Schedule A, line 10.

Line 7 - Contribution Carryover to Next Year

# Line 7 - Contribution Carryover to Next Year

Subtract line 6 from line 5. This is the amount of your Utah contribution carryover to the next tax year.

Schedule E - Prepayments of Any Type

Line 1 - Overpayment Applied from Prior Year

# Line 1 - Overpayment Applied from Prior Year

Enter the amount of any refund applied from the prior year to the current year's tax liability.

Line 2 - Extension Prepayment

# Line 2 - Extension Prepayment

List the date and amount of any extension prepayment. Enter the check number if a payment was not made electronically.

Line 3 - Other Prepayments

# Line 3 - Other Prepayments

List the date and amount of each prepayment made for the ﬁ ling period. Enter the check number if a payment was not made electronically. Enter the total amount on line 3. Attach additional pages, if necessary.

Line 4 - Total Prepayments

# Line 4 - Total Prepayments

Add lines 1, 2 and 3. Enter the total on this line and on Schedule A, line 29.

Schedule H - Nonbusiness Income Net of Expenses

# Schedule H - Nonbusiness Income Net of Expenses

Complete TC-20, Schedule H to determine nonbusiness income allocated to Utah and outside Utah.
Business income is all income that is apportionable under the U.S. Constitution and is not allocated under Utah law. It includes income arising from transactions or activity performed in the regular course of the taxpayer's trade or business. It also includes any tangible and intangible property if the acquisition, management, employment, development or disposition is or was related to the operation of the taxpayer's trade or business during the tax year.
Nonbusiness income is all income other than business income. The burden of proof is on the taxpayer to justify how the income is claimed on the return.
Business income also includes income that would be allocable to Utah under the U.S. Constitution, but is apportioned rather than allocated if an election is made. This election is irrevocable.
If a transaction results from the sale of property that would otherwise meet the deﬁ nition of nonbusiness income, you may elect to treat only the sales from intangible property as business income by marking the box on page 1 of the return on or before the ﬁ ling deadline. Also attach a statement to the return explaining the transaction and showing a breakdown of the total income between the sales of tangible and intangible property.
If the transaction creating the income meets the deﬁ nition of nonbusiness income, the election only applies for sales resulting from the intangible property. You must treat any income from the sale related to tangible property as nonbusiness income, include it on Schedule H, and allocate it as in UCA §§59-7-307 - 310.
Interest income is business income where the intangible with respect to which the interest was received arises out of or was created in the regular course of the taxpayer's trade or business operations, or where the purpose for acquiring and holding the intangible is an integral, functional, or operative component of the taxpayer's trade or business operations, or otherwise materially contributes to the production of business income of the trade or business operations. See Tax Commission Rule R865-6F-8(2)(e)(iii).
Dividends are business income where the stock with respect to which the dividends were received arose out of or was acquired in the regular course of the taxpayer's trade or business operations or where the acquiring and holding of the stock is an integral, functional, or operative component of the taxpayer's trade or business operations, or otherwise materially contributes to the production of business income of the trade or business operations. See Tax Commission Rule R865-6F-8(2)(e)(iv).
Gain or loss from the sale, exchange, or other disposition of real property or of tangible or intangible personal property constitutes business income if the property while owned by the taxpayer was used in, or was otherwise included in the property factor of the taxpayer's trade or business. See Tax Commission Rule R865-6F-8(2)(e)(ii).
Rental income from real and tangible property is business income if the property with respect to which the rental income was received is or was used in the taxpayer's trade or business and therefore is includable in the property factor. See Tax Commission Rule R865-6F-8(2)(e)(i).
Complete Schedule H as follows:

Complete lines 1a through 14 if you are claiming only Utah nonbusiness income.
Complete lines 15a through 28 if you are claiming only non-Utah nonbusiness income.
Complete lines 1a through 28 if you are claiming both Utah and non-Utah nonbusiness income.

Use additional pages or supporting schedules in the same format, if necessary, to provide complete information, including a description of the business purpose for making the investment, the transactions creating the nonbusiness income, and the use of revenues generated by the nonbusiness investment.

# Utah Nonbusiness Income

Lines 1a-1e - Utah Nonbusiness Income Complete the information in each column and enter the gross Utah nonbusiness income from each class of income being allocated. Use additional pages or supporting schedules in the same format, if necessary, to provide complete information about additional sources of nonbusiness income.
Line 2 - Total of Columns C and D Line 2 - Total of Columns C and D Enter the total of the amounts on lines 1a through 1e in column C and column D.
Line 3 - Total Utah Nonbusiness Income Line 3 - Total Utah Nonbusiness Income Enter the total of column E, lines 1a through 1e.
Lines 4a-4e - Direct Related Expenses Describe and enter amounts of direct expenses on the same letter line as the corresponding Utah nonbusiness income is listed on lines 1a through 1e. Direct related expenses include wages, interest, depreciation, etc. (UCA §59-7-101).
Line 5 - Total Direct Related Expenses Line 5 - Total Direct Related Expenses Enter the sum of direct related expenses by adding lines 4a through 4e.
Line 6 - Utah Nonbusiness Income Net of Line 6 - Utah Nonbusiness Income Net of

# Ending Asset Values

Add lines 7 and 8 for each respective column.
Line 10 - Average Asset Value
Line 10 - Average Asset Value
Divide line 9 by 2 for each column.
Line 11 - Utah Nonbusiness Asset Ratio Line 11 - Utah Nonbusiness Asset Ratio Divide line 10, column A by line 10, column B. Round the result to four decimal places. Do not enter a decimal greater than 1.0000, and do not enter a negative number.
Line 12 - Interest Expense
Line 12 - Interest Expense
Enter the total amount of interest deducted on federal form 1120, line 18 and elsewhere on the federal return.
Line 13 - Indirect Related Expenses for Utah Line 13 - Indirect Related Expenses for Utah

# Nonbusiness Income

Multiply line 12 by the ratio on line 11.
Line 14 - Total Utah Nonbusiness Income Line 14 - Total Utah Nonbusiness Income

# Net of Expenses

Subtract line 13 from line 6. Enter the amount here and on Schedule A, page 1, line 6.

# Non-Utah Nonbusiness Income

Lines 15a-15e - Non-Utah Nonbusiness Income Complete the information in each column and enter the gross non-Utah nonbusiness income from each class of income being speciﬁ cally allocated. Use additional pages or supporting schedules in the same format, if necessary, to provide complete information about additional sources of non-Utah nonbusiness income.
Line 16 - Total of Columns C and D Line 16 - Total of Columns C and D Enter the total of the amounts on lines 15a through 15e in column C and column D.
Line 17 - Total Non-Utah Nonbusiness Income Line 17 - Total Non-Utah Nonbusiness Income Enter the total of the amounts on lines 15a through 15e in column E.
Lines 18a-18e - Direct Related Expenses Describe and enter amounts of direct expenses on the same letter line as the corresponding non-Utah nonbusiness income on lines 15a through 15e. Direct related expenses include wages, interest, depreciation, etc. (UCA §59-7-101).
Line 19 - Total Direct Related Expenses Line 19 - Total Direct Related Expenses Enter the sum of direct related expenses by adding lines 18a through 18e.
Line 20 - Non-Utah Nonbusiness Income Line 20 - Non-Utah Nonbusiness Income

# Asset Values

Add lines 21 and 22 for each respective column.
Line 24 - Average Asset Values Line 24 - Average Asset Values Divide line 23 by 2 for each column.
Line 25 - Non-Utah Nonbusiness Asset Ratio Line 25 - Non-Utah Nonbusiness Asset Ratio Divide line 24, column A by line 24, column B. Round the result to four decimal places. Do not enter a decimal greater than 1.0000, and do not enter a negative number.
Line 26 - Interest Expense
Line 26 - Interest Expense
Enter the total amount of interest deducted on federal form 1120, line 18 and elsewhere on the federal return.
Line 27 - Indirect Related Expenses for Line 27 - Indirect Related Expenses for

# Non-Utah Nonbusiness Income

Multiply line 26 by the ratio on line 25.
Line 28 - Total Non-Utah Nonbusiness Income Line 28 - Total Non-Utah Nonbusiness Income

# Net of Expenses

Subtract line 27 from line 20. Enter amount here and on Schedule A, page 1, line 7.

Schedule J - Apportionment Schedule Schedule J - Apportionment Schedule Use TC-20, Schedule J to calculate the portion of the taxpayer's income attributable to Utah, if the taxpayer does business both within and outside of Utah.
Complete TC-20, Schedule J to determine the apportionment fraction (decimal). The factors express a ratio for property in Utah to total property everywhere, for wages and salaries in Utah to total wages and salaries everywhere, and for sales in Utah to total sales everywhere. Use these factors or ratios to arrive at the Utah apportionment fraction calculated to six decimals. Then apply this fraction (decimal) to the apportionable income (or loss) on Schedule A to arrive at the amount of income (or loss) apportioned to Utah. In cases where one or more of the factors is omitted due to peculiar aspects of the business operations, use the number of factors present to determine the Utah apportionment fraction.
Your economic activities, and your method of apportioning income in the previous year, dictate the apportionment method you may use.

# Pass-through Entity Taxpayers

Partners, shareholders and beneﬁ ciaries of pass-through entities (an entity taxed as a partnership, S corporation or trust) must include their pro rata share of the pass-through entity's property, payroll and sales in their calculation of the apportionment factor on TC-20, Schedule J, page 1.
If a corporation holds direct and indirect ownership interests in tiered pass-through entities, it must include its pro rata share of the apportionment factors (property, payroll and sales) of the pass-through entities, applying the respective ownership percentages. For example, a corporation that holds 50 percent interest in Partnership A that in turn holds 20 percent interest in Partnership B would include 50 percent of the factors of Partnership A, and 10 percent (50 percent of 20 percent) of the factors of Partnership B.

# Apportionment Method

To determine if you must apportion income using the sales factor formula or if you qualify as an optional apportionment taxpayer, take into account the economic activities of each of the entities included in the return. Include the economic activities of any pass-through entities whose income and factors are included in the return.

# Sales Factor Weighted Taxpayers

A sales factor weighted taxpayer may only use the sales factor fraction to apportion income.
You must use the sales factor formula if you:

apportioned income using the sales factor formula during the prior tax year,
do not meet the deﬁ nition of an optional apportionment taxpayer (see instructions below), or
generate more than 50 percent of total sales everywhere from economic activities in any NAICS codes OTHER THAN these identiﬁ ed NAICS codes:
Sector 21, Mining
Industry Group 2212, Natural Gas Distribution
Sector 31-33, Manufacturing EXCEPT:
Industry Group 3254, Pharmaceutical and Medicine Manufacturing
Industry Group 3333, Commercial and Service Industry Machinery Manufacturing
Subsector 334, Computer and Electronic Product Manufacturing
Code 336111, Automobile Manufacturing
Sector 48-49, Transportation and Warehousing
Sector 51, Information EXCEPT:
Subsector 519, Other Information Services
Sector 52, Finance and Insurance Report property and payroll factors on Schedule J, page 1, but do not use them to calculate the apportionment of sales factor weighted taxpayers.

Sales factor weighted taxpayers must calculate the apportionment fraction on Schedule J, Page 2 using Part 2 - Sales Factor Formula.

# Optional Apportionment Taxpayers

If you did not use the sales factor fraction in the prior year, and you do not generate more than 50 percent of total sales everywhere from economic activities in any NAICS codes OTHER THAN the identiﬁ ed NAICS codes listed above, determine if you are an optional apportionment taxpayer by ﬁ rst calculating the following two fractions:

Property factor fraction: Add together the value of property in Utah attributable to economic activities that are classi- ﬁ ed in an excluded NAICS code. Divide this number by the value of all property in Utah. Remove property from this calculation if the property is attributable to economic activities in both excluded NAICS codes and non-excluded NAICS codes.
Payroll factor fraction: Add together the amount of payroll in Utah attributable to economic activities that are classi- ﬁ ed in an excluded NAICS code. Divide this number by the total amount of payroll in Utah. A taxpayer engaged in activities in an excluded NAICS code must remove an individual's payroll from this calculation of the payroll factor fraction if the individual's payroll may be attributed to economic activities in both excluded NAICS codes and NAICS codes that are not excluded, or to providing management, information technology, ﬁ nance, accounting, legal or human resource services.

Add the property and payroll factor fractions and divide that sum by two. If either the property factor fraction or payroll factor fraction has a denominator of zero, or is otherwise excluded, divide by one. If the average is more than 50 percent, you are an optional apportionment taxpayer. If the average is not more than 50 percent, you are not an optional apportionment taxpayer and must apportion income to Utah using the sales factor.
Optional apportionment taxpayers may calculate the apportionment fraction using either the equally-weighted three factor formula (Schedule J, Part 1) or the sales factor formula (Schedule J, Part 2). If you choose to use the sales factor formula, you must ﬁ le using only the sales factor in the next tax year.
Excluded NAICS codes are NAICS codes of the 2017 North American Industry Classiﬁ cation System within:

Code 211120, Crude Petroleum Extraction
Industry Group 2121, Coal Mining
Industry Group 2212, Natural Gas Distribution
Subsector 311, Food Manufacturing
Industry Group 3121, Beverage Manufacturing
Code 327310, Cement Manufacturing
Subsector 482, Rail Transportation
Code 512110, Motion Picture and Video Production
Subsector 515, Broadcasting (except Internet)
Code 522110, Commercial Banking

# Business Activity

Brieﬂ y describe the nature and location(s) of your Utah business activities in the space provided at the top of this schedule.
Lines 1a - 1f - Property Factor Show the average cost value during the tax year of real and tangible personal property used in the business within Utah (including leased property) in column A and overall (including
Utah) in column B.
Property you own is valued at its original cost. Property you rent is valued at eight times the net annual rental rate. Net annual rental rate is the annual rental rate you pay less the annual rate you receive from sub-rentals.
The average value of property must be determined by averaging the cost values at the beginning and end of the tax period.
However, monthly values may be used or required if monthly averaging more clearly reﬂ ects your property's average value.
Attach a supporting schedule whenever you use monthly averaging.
If you are a pass-through entity taxpayer, add to line 1e any amounts listed on line J of any TC-65 Schedule K-1 you have received.
Enter totals of lines 1a through 1e in the respective columns on line 1f.
Line 2 - Property Factor Calculation Line 2 - Property Factor Calculation Determine the property factor (decimal) by dividing line 1f, column A by line 1f, column B.
Line 3 - Payroll Factor
Line 3 - Payroll Factor
Wages, salaries, commissions and other includable compensation paid to employees for personal services must be included in the Utah factor to the extent the services, for which the compensation was paid, were rendered in Utah.
Compensation is paid in Utah if:

the individual's service is performed entirely within Utah;
the individual's service is performed both within and outside Utah, but the service performed outside Utah is incidental to the individual's service within Utah; or
some of the service is performed in Utah and: a. the base of operations or, if there is no base of operations, the place where the service is directed or controlled, is within Utah; or b. the base of operations or the place where the service is directed or controlled is not in any state where some part of the service is performed, but the individual's residence is in Utah.

Amounts reportable for employment security purposes may ordinarily be used to determine the wage factor.
Overall wages, including Utah, are listed in column B.
If you are a pass-through entity taxpayer, add to line 3a any amounts listed on line K of any TC-65 Schedule K-1 you have received.
Line 4 - Payroll Factor Calculation Line 4 - Payroll Factor Calculation Determine the payroll factor (decimal) by dividing line 3a, column A by line 3a, column B.
Lines 5a - 5h - Sales Factor
The sales factor is the fraction the sales or charges for services within Utah for the tax year bear to the overall sales for the tax year. Gross receipts from the performance of services in Utah are assigned to the Utah sales numerator if the purchaser of the service receives a greater beneﬁ t of the service in Utah than in any other state.
Taxpayers that perform a service both in and outside Utah must include service income on line 5g in column A (Inside
Utah) if the purchaser of the service receives a greater beneﬁ t of the service in Utah than in any other state. The former "cost of performance" method no longer applies. (See UCA §59-7-319(3)(a).) Sales of tangible personal property are in Utah if the property is delivered or shipped to a purchaser within Utah regardless of the F.O.B. point or other conditions of the sale, or if the property is shipped from an oﬃ ce, store, warehouse, factory or other place of storage in Utah and:

the purchaser is the United States Government, or
the taxpayer is not taxable in the state of the purchaser.

Overall sales, including Utah, are listed in column B.
Note: Securities brokerage businesses must follow the provisions in UCA §59-7-319(6).
If you are a pass-through entity taxpayer, add to line 5g any amounts listed on line L of any TC-65 Schedule K-1 you have received.
Enter totals of lines 5a through 5g in their respective columns on line 5h.
Line 6 - Sales Factor Calculation Line 6 - Sales Factor Calculation Determine the sales factor (decimal) by dividing line 5h, column A by line 5h, column B.

# NAICS Code for Taxpayer

Line 7 - NAICS Code
Line 7 - NAICS Code
This is a mandatory ﬁ eld. Your NAICS code may dictate your apportionment method.
Enter on line 7 the NAICS code for the primary business activity. Do not use the holding company NAICS code.

# Apportionment Fraction

X Part 1 - Equally-Weighted Three Factor Part 1 - Equally-Weighted Three Factor Formula Formula If you are an optional apportionment taxpayer using the equally-weighted three factor formula, complete lines 8 and

Otherwise, leave lines 8 and 9 blank.

Line 8 - Total Factors
Line 8 - Total Factors
Enter the sum of the factors from lines 2, 4 and 6.
Line 9 - Apportionment Fraction Line 9 - Apportionment Fraction Calculate the apportionment fraction to six decimals by dividing line 8 by the number of factors used (typically 3 - property, payroll and sales).

If one or more of the factors are not present (i.e., there is a zero in the denominator on lines 1f, 3a or 5h in column B), divide by the number of factors present.
If the numerator is zero, but a denominator is present, include that factor in the number of factors present.

Enter the apportionment fraction (decimal) here and on Schedule A, line 12.
X Part 2 - Sales Factor Formula Part 2 - Sales Factor Formula See instructions above for the deﬁ nition and qualiﬁ cations of a taxpayer who must apportion income using the sales factor formula.
Leave line 10 blank if you are using the equally-weighted three-factor formula.
Line 10 - Apportionment Fraction Line 10 - Apportionment Fraction Enter the sales factor from line 6 of Schedule J, page 1. This is the apportionment fraction for this apportionment method.
(Property and payroll factors are not used in the calculation of the apportionment fraction for taxpayers who must apportion income using the sales factor formula.) Enter the apportionment fraction (decimal) here and on Schedule A, line 12.

# Laws and Rules

Specialized apportionment procedures apply for:

Trucking Companies (R865-6F-19)
Railroads (R865-6F-29)
Publishing Companies (R865-6F-31)
Financial Institutions (R865-6F-32)
Telecommunications (R865-6F-33)
Registered Securities or Commodities Broker or Dealer (R865-6F-36)
Airlines (UCA §§59-7-312 thru 319)
Sale of Management, Distribution or Administration Services to or on Behalf of a Regulated Investment Company (UCA §59-7-319(5))

Schedule M - Corporations Included in Schedule M - Corporations Included in

# Combined Filings

Any corporation ﬁ ling a combined report must complete Schedule M if one or more of the subsidiaries or aﬃ liated corporations is incorporated, qualiﬁ ed, or doing business in
Utah. Federal schedules are not acceptable as substitutes.
You may not use any other form as a substitute for Schedule M without prior approval from the Tax Commission. See Guidelines for Substitute Utah Tax Forms, at List only corporations incorporated, qualiﬁ ed or doing business in Utah. Corporations not listed on Schedule M will not be considered to have met the Utah ﬁ ling requirements. Use the Schedule M, Supplemental Sheet if you need more space.

# Minimum Tax

Line a - Number of Corporations Line a - Number of Corporations Enter on line "a" the total number of corporations incorporated, qualiﬁ ed and doing business in Utah (including the parent corporation if incorporated, qualiﬁ ed or doing business in
Utah) that are listed on the Schedule M.
Line b - Total Minimum Tax
Line b - Total Minimum Tax
Multiply the number of corporations listed on line "a" by $100 (the minimum tax). Also, enter this amount on Schedule A, line 18b.

# Payment Coupon

Use payment coupon TC-559 to make the following corporate/partnership tax payments:

Estimated tax payments
Extension payments
Return payments

Mark the circle on the coupon that shows the type of payment you are making.
Corporation Estimated Tax Requirements
Every corporation with a tax liability of $3,000 or more in the current or previous tax year must make quarterly estimated tax payments. A parent company filing a combined report must make the payment when the total tax is $3,000 or more for all affiliated companies, including those that pay only the minimum tax.
A corporation does not have to make estimated tax payments the first year it is required to file a Utah return if it makes a payment on or before the due date, without extension, equal to or greater than the minimum tax.
Estimated tax payments are due in four equal payments on the 15th day of the 4th, 6th, 9th and 12th months of the entity's taxable year. You may make quarterly payments equal to 90 percent of the current year tax or 100 percent of the previous year tax. A corporation that had a tax liability of $100 (the minimum tax) for the previous year may prepay the minimum tax amount of $100 on the 15th day of the 12th month instead of making four $25 payments.
The Tax Commission will charge an underpayment penalty to entities that fail to make or underpay the required estimated tax.
Extension Payment Requirements
A corporation/partnership has an automatic filing extension if it makes the necessary extension payment by the return due date. The estimated tax payments must equal at least the lesser of:

90 percent of the current year tax liability (or the $100 corporation minimum tax, if greater), or
100 percent of the previous-year tax liability.

The remaining tax, plus any penalty and interest, is due when the return is filed.
Note: A pass-through entity (partnership or S corporation) must pay 100 percent of any pass-through withholding by the original due date to avoid penalties and interest.

Penalties and Interest
If your tax payments do not equal the lesser of 90 percent of the current-year tax liability ($100 minimum tax for corporations) or 100 percent of the previous-year tax liability, we will assess a penalty of 2 percent of the unpaid tax for each month of the extension period. We will assess a late filing penalty if you file the return after the extension due date.
We will assess interest at the legal rate from the original due date until paid in full.
See Pub 58, Utah Interest and Penalties, at tax.utah.gov/forms.

# Where to File

Send your payment coupon and payment to :
Corporate/Partnership Tax Payment 210 N 1950 W Salt Lake City, UT 84134-0180
Electronic Payment
You may make estimated tax, extension and return payments at tap.utah.gov.
SEPARATE AND RETURN ONLY THE BOTTOM COUPON WITH PAYMENT. KEEP TOP PORTION FOR YOUR RECORDS.

# Corporation/Partnership

Mail to: Utah State Tax Commission, 210 N 1950 W, SLC UT 84134-0180

# Payment Coupon

Estimated payment:
Rev. 11/16
3rd qtr.
1st qtr.
Tax year ending (mm/dd/yyyy)
Extension payment
4th qtr.
2nd qtr. Return payment
EIN
Name of corporation/partnership Address City C P T State Zip code $
Payment amount enclosed
Make check or money order payable to the Utah State Tax Commission.
Make check or money order payable to the Utah State Tax Commission.
Do not send cash. Do not staple check to coupon. Detach check stub.
Do not send cash. Do not staple check to coupon. Detach check stub.

# Common Return Errors

Unitary businesses not ﬁ ling a combined report -Groups of corporations that are engaged in an integrated unitary business must ﬁ le on a combined basis. See instructions on page 3.
Utah sales factor on Schedule J - Out-of-state corporations qualiﬁ ed in Utah, but not doing business in Utah must ﬁ le a corporate return paying the minimum tax. However, sales into Utah are not required to be included in the gross receipts numerator, except as provided under Utah Rule R865-6F-24. Conversely, corporations making sales from Utah into a state where they are qualiﬁ ed but not doing business must include such sales in the Utah gross receipts numerator as throwback sales, except as provided under Utah Rule R865-6F-24.
Net capital losses may not be carried back - Capital losses may be deducted in full in the year incurred or may be carried forward. See UCA §59-7-106(2).
Dissolution or withdrawal - Corporations no longer in business or no longer doing business in Utah are required to legally dissolve or withdraw the corporation. See instructions on page 1.
Pass-through entity income and factors - Income or loss from partnership or joint venture interests must be included in income and apportioned to Utah. See instructions for Schedule J - Apportionment Schedule.

# Please arrange your return in the fol-

Please arrange your return in the following order: lowing order:

Utah form TC-20
Utah schedules A through M (if required), in alphabetical order
Federal extension form, if applicable
First six pages only of your federal return (plus Form 1120, Schedule M-3 and IRS form 1125-A, if applicable)
Other supporting documentation only as requested in these instructions Do not send a copy of your entire federal corporation return.