Farm Operations Hand Tools Tax Credit (code 48)

UC §59-10-1105

A refundable credit is allowed for sales and use tax paid on hand tools:

  • purchased during the tax year, and
  • used or consumed primarily and directly in a farming operation in Utah.

Important: The credit applies only if the unit purchase price of the tool is more than $250.

There is no form for this credit. Documentation in the form of a receipt, invoice, or similar document showing the amount of sales or use tax paid must be retained with your records and may be required by the Tax Commission for verification of the credit claimed. You may also be required by the Tax Commission to provide a copy of your federal Schedule F, Farm Income or Loss.

The credit is claimed by entering the allowable credit (the total sales and use tax paid on qualifying hand tools) on your Utah TC-40A, Part 5, using code 48.