The purpose of this paper is to present a mathematical theory of the
half-twisted (0,2) gauged linear sigma model and its correlation functions
that agrees with and extends results from physics. The theory is associated to
a smooth projective toric variety X and a deformation \sheaf E of its
tangent bundle TX. It gives a quantum deformation of the cohomology ring of
the exterior algebra of \sheaf E^*. We prove that in the general case, the
correlation functions are independent of `nonlinear' deformations. We derive
quantum sheaf cohomology relations that correctly specialize to the ordinary
quantum cohomology relations described by Batyrev in the special case \sheaf E
= T_X