Nonrefundable earned income tax credit

# (1)

As used in this section:

# (a)

"Federal earned income tax credit" means the federal earned income tax credit described in Section 32, Internal Revenue Code.

# (b)

"Qualifying claimant" means a resident or nonresident individual who:

(i) qualifies for and claims the federal earned income tax credit for the current taxable year; and

(ii) earns income in Utah that is reported on a W-2 form.

# (2)

Subject to Section 59-10-1002.2, a qualifying claimant may claim a nonrefundable earned income tax credit equal to the lesser of:

# (a)

20% of the amount of the federal earned income tax credit that the qualifying claimant was entitled to claim on a federal income tax return for the current taxable year; and

# (b)

the total Utah wages reported on the qualifying claimant's W-2 form for the current taxable year.

# (3)

A qualifying claimant may not carry forward or carry back the amount of the earned income tax credit that exceeds the qualifying claimant's tax liability.