Utah State Tax Commission
Employers Who Hire Persons With Disabilities Tax Credit
Clear form TC-40HD
Get forms online - tax.utah.gov
Utah law allows a nonrefundable tax credit against the corporate franchise or income tax for employers who hire persons with disabilities who work for the employer for at least six months in a taxable year. Do not send this form with your return. Keep this form and all related documents with your records.
Name of employer claiming credit Address City Employer's identification number Telephone number State ZIP Code
PART B - Certification To be completed by the Division of Services for People with Disabilities I certify the individuals listed below (1) have been receiving services from a day training program or from a supported employment program for persons with disabilities, certified by the Department of Human Services as a qualifying program, for at least six consecutive months in the taxable year prior to working for the employer claiming the tax credit, or (2) were eligible for services from the Division of Services for People with Disabilities at the time the individuals began working for the employer.
Authorized signature Title Date
PART C - Summary Worksheet For Disabled Employees Credit Worksheet Instructions on back
Name of disabled employee Number First six months of Remainder of gross of months Social security number gross wages paid to wages paid to of disabled employee disabled employee disabled employee worked in for taxable year for taxable year the taxable (see instructions) (see instructions) year
10% of Column D 20% of Column E Add columns F and G
Limited to $3,000 per disabled employee
Total Credit Allowed $
1. Amount of credit applied to the tax year the credit was earned (must not exceed the amount of tax due on your return)
IMPORTANT - PLEASE READ Refer to the instructions for your CORPORATE TAX (TC-20) return to determine the line number on which you will record this credit. The credit code is "09" for all returns.
Credit amounts in excess of the current year tax liability may be carried forward 2 years after the first year.
Carryforward Amounts 2. Amount of tax credit carried forward - first year 3. Amount of tax credit carried forward - second year 2 3 Applied to tax year:
General Procedures and Instructions An employer may take a nonrefundable credit against the corporate franchise or income tax based on amounts paid to persons with disabilities who work for the employer. The credit applies only to the wages paid by an employer to individuals with disabilities. The credit shall be equal to 10 percent of the gross wages earned in the first six months of the taxable year by the employee with disabilities; plus 20 percent of the gross wages earned in the remainder of the taxable year by the employee with disabilities.
For example, if an employee with disabilities begins working with an employer March 1, and the employer is a calendar year filer, the employer shall calculate its credit using the following steps: (1) multiply the wages earned by the employee from March 1 through August 31 by 10 percent; (2) multiply the wages earned by the employee from September 1 through December 31 by 20 percent; and (3) add those two amounts.
For purposes of this credit, individuals with disabilities are defined as individuals who : (1) have been receiving services from a day training program or from a supported employment program for persons with disabilities, which is certified by the Department of Human Services as a qualifying program, for at least six consecutive months prior to working for the employer who is claiming the tax credit; or (2) were eligible for services from the Division of Services for People with Disabilities at the time the individual began working for the employer claiming the tax credit. An employer qualifies for this credit only if the individual with a disability: (1) works in this state for at least six months in a taxable year for the employer; and (2) is paid at least minimum wage by the employer. The credit is limited to $3,000 per disabled employee during the taxable year. The credit is allowed only for the first two years the individual with a disability is employed by the employer. Credit amounts greater than Utah corporation tax liability in the tax year in which credit is earned may be carried forward to each of the following two tax years. Carryforward credits shall be applied against the tax liability of any year before the application of any credits earned in the tax year on a first-earned first-used basis. Do not send this form with your return. Keep this form and all related documents with your records. PART B of this form, must be completed and signed by an authorized representative of the Division of Services for People With Disabilities.
PART C - Worksheet Instructions Column A: Column B: Column C: Column D: Column E: Column F: Column G: Column H: List the individuals you employ that meet the definition of an individual with a disability. Enter the number of months the disabled employee worked in the taxable year for the business. Provide the social security number of the individuals listed in column A. Enter the first six months of gross wages paid to employees with disabilities for taxable year. Enter the remainder of gross wages paid to employees with disabilities for taxable year. Enter 10 percent of the amount listed in Column D. Enter 20 percent of the amount listed in Column E. Add columns F and G. If the amount of credit for the employee with disabilities is greater than $3,000, enter only $3,000. Add the amounts in Column H and enter the results in the Total Credit Allowed box.
Division of Services for People with Disabilities 120 N 200 W #411 SLC, UT 84103 Telephone 801-538-4200 www.hsdspd.utah.gov