State Tax Day - Current, S.9, Utah—Corporate, Personal Income Taxes: Provisions Relating Carson Smith Opportunity Scholarship Program Amended, (Mar 23, 2026)

Enacted Utah legislation amends provisions related to the nonrefundable corporate income and personal income tax credit for donations to the Carson Smith Opportunity Scholarship Program. Specifically, the legislation does the following:

• eliminates the carry forward and carry back provisions for the tax credit beginning January 1, 2026;

• provides that a taxpayer may claim the tax credit for the taxable year indicated on the tax credit certificate issued beginning January 1, 2026;

• provides that a taxpayer may not claim the tax credit for a donation to the extent the taxpayer claims the donation as a deduction or credit against the taxpayer’s federal income taxes for any taxable year beginning January 1, 2026;

• eliminates income based eligibility requirements for the scholarship;

• removes scholarship eligibility for a sibling;

• aligns the scholarship requirements with the Utah Fits All Scholarship Program;

• allows the scholarship granting organization to approve qualified providers and private schools;

• requires the scholarship granting organization to ensure physical education and extracurricular caps are followed;

• amends the definition of scholarship expense to be the same across multiple scholarship programs;

• establishes primary residency verification to be eligible for a scholarship;

• creates a deadline for an eligible student to accept the scholarship that the scholarship granting organization determines; and

• clarifies entities that are not eligible to be a qualified provider under the scholarship Program.

Ch. 217 (S.B. 54), Laws 2026, effective May 6, 2026, except as noted