1. (1) As used in this section:

   1. (a) "Joint filing status" means the same as that term is defined in Section 59-10-1018.
   2. (b) "Head of household filing status" means the same as that term is defined in Section 59-10-1018.

   3. (c) "Married filing separately status" means a married individual who:

      1. (i) does not file a single federal individual income tax return jointly with that married individual's spouse for the taxable year; and
      2. (ii) files a single federal individual income tax return for the taxable year.

   4. (d) "Modified adjusted gross income" means the sum of the following for a claimant or, if the claimant's federal individual income tax return is allowed a joint filing status, the claimant and the claimant's spouse:

      1. (i) adjusted gross income for the taxable year for which a tax credit is claimed under this section;
      2. (ii) any interest income that is not included in adjusted gross income for the taxable year described in Subsection (1)(d)(i); and
      3. (iii) any addition to adjusted gross income required by Section 59-10-114 for the taxable year described in Subsection (1)(d)(i).

   5. (e) "Qualifying child" means an individual:

      1. (i) with respect to whom the claimant is allowed to claim a tax credit under Section 24, Internal Revenue Code, on the claimant's federal individual income tax return for the taxable year; and
      2. (ii) who is under six years old on the last day of the claimant's taxable year.
   6. (f) "Single filing status" means a single individual who files a single federal individual income tax return for the taxable year.
2. (2) Subject to Section 59-10-1002.2, a claimant may claim a nonrefundable tax credit of $1,000 for each qualifying child.
3. (3) A claimant may not carry forward or carry back the amount of the tax credit that exceeds the claimant's tax liability.

4. (4) The tax credit allowed by Subsection (2) claimed on a return filed under this chapter shall be reduced by $.10 for each dollar by which modified adjusted gross income for purposes of the return exceeds:

   1. (a) for a federal individual income tax return that is allowed a married filing separately status, $30,500;
   2. (b) for a federal individual income tax return that is allowed a single filing status or head of household filing status, $49,000; and
   3. (c) for a federal individual income tax return that is allowed a joint filing status, $61,000.

Amended by Chapter 360, 2026 General Session