Mineral Production Withholding Tax Credit


UC §59-6-102(3)

Mineral production withholding tax is a prepayment of Utah income tax based on the production or extraction of minerals in Utah. The Utah amount withheld can be claimed as a refundable credit on the Utah income tax return for the year it was withheld.

Utah mineral production withholding tax is reported on form TC-40W, Part 2. Failure to complete the TC-40W, Part 2 with all required information may result in processing delays and the mineral production withholding tax credit being disallowed.

Form TC-675R

Withholding tax from a mineral producer is reported on form TC-675R.

The mineral production company must provide the following information to you on the TC-675R:

  • The company’s federal employer identification number (EIN),
  • The company’s Utah mineral production withholding account number, and
  • Your share of the mineral production withholding tax.

To claim credit for Utah mineral production withholding tax from TC-675R, enter the following information TC-40W, Part 2:

  • Line 1 – Enter your mineral producer’s federal EIN from TC-675R, box 2.
  • Line 2 – Enter your mineral producer’s name from TC-675R, box 1.
  • Line 3 – Enter your mineral producer’s Utah withholding account number from TC-675R, box 3.
  • Line 5 – Enter your mineral production withholding tax from TC-675R, box 5.

Enter the mineral production withholding tax on TC-40W, Part 2 and carry the total to Utah TC-40, page 2, line 36.

Do not send the TC-675R with your Utah return. Keep these forms in your files.

Utah Schedule K-1

The mineral production withholding tax may also be distributed to you from a pass-through entity (partnership, LLC, LLP, S corporation, or trust) on a Utah Schedule K-1.

To claim credit for Utah mineral production withholding tax from a Utah Schedule K-1, enter the following information on TC-40W, Part 2:

  • Line 4 – Enter the federal EIN of the pass-through entity from the Utah Schedule K-1, line A.
  • Line 5 – Enter your share of mineral production withholding tax reported on the Utah Schedule K-1, by a pass-through entity.

Do not send the Utah Schedule K-1 with your Utah return. Keep these forms in your files.

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