Utah § 59-10-1022 - Nonrefundable tax credit for capital gain transactions.

Full text of Utah Utah Code § 59-10-1022 — Nonrefundable tax credit for capital gain transactions., with citation guidance and answers to common questions.

§ 59-10-1022. Nonrefundable tax credit for capital gain transactions.

Effective 5/5/2021
59-10-1022. Nonrefundable tax credit for capital gain transactions.

(1)

As used in this section:

(a)

(i)

"Capital gain transaction" means a transaction that results in a:

(A)	short-term capital gain; or

(B)	long-term capital gain.

(ii)	In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the term "transaction."

(b)	"Commercial domicile" means the principal place from which the trade or business of a Utah small business corporation is directed or managed.

(c)	"Long-term capital gain" is as defined in Section 1222, Internal Revenue Code.

(d)

"Qualifying stock" means stock that is:

(i)

(A)	common; or

(B)	preferred;

(ii)

as defined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, originally issued to:

(A)	a claimant, estate, or trust; or

(B)

a partnership if the claimant, estate, or trust that claims a tax credit under this section:

(I)	was a partner on the day on which the stock was issued; and

(II)	remains a partner until the last day of the taxable year for which the claimant, estate, or trust claims a tax credit under this section; and

(iii)

issued:

(A)	by a Utah small business corporation;

(B)	on or after January 1, 2008; and

(C)

for:

(I)

money; or

(II)	other property, except for stock or securities.

(e)	"Short-term capital gain" is as defined in Section 1222, Internal Revenue Code.

(f)

(i)

"Utah small business corporation" means a corporation that:

(A)	except as provided in Subsection (1)(f)(ii), is a small business corporation as defined in Section 1244(c)(3), Internal Revenue Code;

(B)	except as provided in Subsection (1)(f)(iii), meets the requirements of Section 1244(c)(1)(C), Internal Revenue Code; and

(C)	has its commercial domicile in this state.

(ii)	The dollar amount listed in Section 1244(c)(3)(A) is considered to be $2,500,000.

(iii)

The phrase "the date the loss on such stock was sustained" in Sections 1244(c)(1)(C) and 1244(c)(2), Internal Revenue Code, is considered to be "the last day of the taxable year for which the claimant, estate, or trust claims a tax credit under this section."

(2)

For taxable years beginning on or after January 1, 2008, a claimant, estate, or trust that meets the requirements of Subsection (3) may claim a nonrefundable tax credit equal to the product of:

(a)	the total amount of the claimant's, estate's, or trust's short-term capital gain or long-term capital gain on a capital gain transaction that occurs on or after January 1, 2008; and

(b)	the percentage listed in Subsection 59-10-104(2).

(3)

For purposes of Subsection (2), a claimant, estate, or trust may claim the nonrefundable tax credit allowed by Subsection (2) if:

(a)

70% or more of the gross proceeds of the capital gain transaction are expended:

(i)	to purchase qualifying stock in a Utah small business corporation; and

(ii)	within a 12-month period after the day on which the capital gain transaction occurs; and

(b)	prior to the purchase of the qualifying stock described in Subsection (3)(a)(i), the claimant, estate, or trust did not have an ownership interest in the Utah small business corporation that issued the qualifying stock.

(4)	A claimant, estate, or trust may not carry forward or carry back a tax credit under this section.

(5)

In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules:

(a)	defining the term "gross proceeds"; and

(b)	prescribing the circumstances under which a claimant, estate, or trust has an ownership interest in a Utah small business corporation.

Amended by Chapter 367, 2021 General Session

Source: official Utah text · Last verified 2026-08-27

Frequently Asked Questions About Utah § 59-10-1022

What does Utah Code § 59-10-1022 cover?

Section 59-10-1022 ("Nonrefundable tax credit for capital gain transactions.") is part of the Utah Code, the codified statutory law of Utah. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.

How do I cite Utah § 59-10-1022?

A common citation format is "Utah Code § 59-10-1022" (Utah). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.

Is this the official text of Utah law?

No. This page is for research and education and may not include the most recent amendments. For official current law, check the Utah official source linked on this page or consult a licensed Utah attorney.

How does Utah § 59-10-1022 apply to my situation?

Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Utah can advise on how this section applies to you. Contact your state or local bar association for a referral.

Sources & Verification

Official text of § 59-10-1022 at the Utah source

Not legal advice. Verify against the official source and consult a licensed attorney in Utah.