Income Tax Modifications

SB 116 lowers Utah's corporate and individual income tax rates from 4.55% to 4.5% for tax years beginning on or after January 1, 2025. It directly affects businesses and individuals who pay Utah income tax by reducing their tax liability. The bill amends specific tax code sections to reflect this rate reduction and applies retroactively to all 2025 tax years. No new funding is appropriated, as this is solely a rate adjustment. The changes take effect May 7, 2025, with retroactive application to January 1, 2025.