According to the Utah income tax booklet, the following changes have been made to Utah's tax code regarding 2023 income taxes.
Credits
Solar Energy Systems Phase-Out: The maximum Renewable Residential Energy Systems Credit (credit 21) for solar power systems installed in 2023 is $400
Nonresident exemption: The 2022 Utah Legislature passed SB 39, providing an income tax exemption for certain nonresidents who work in Utah 20 days or less during the year
Utah tax rate: The 2023 Utah Legislature passed HB 54, lowering the individual income tax rate from 4.85 percent to 4.65 percent
Utah earned income tax credit: The 2023 Utah legislature passed HB 54, limiting the Utah earned income tax credit to the amount of Utah income earned
Additional dependent for taxpayer tax credit: The 2023 Utah legislature passed HB 54, allowing an additional personal exemption in the year of a qualifying dependent’s birth, for purposes of calculating the Utah taxpayer tax credit
Tax credits for adoption expenses: The 2023 Utah Legislature passed HB 130, repealing the Special Needs Adoption tax credit (credit 41) and enacting a Refundable Adoption Expenses tax credit (credit ME) and a Nonrefundable Adoption Expenses tax credit (credit AS)
Income Additions:
Payroll Protection Program (PPP) grant or loan addback: In certain situations, you must add to your income the amount of PPP grants or loans forgiven in 2023.
For more information regarding these changes, please see TC-40 Instructions.