UtahUtah employers may count off-site child care toward tax credits
Utah law lets qualifying employers count certain child care costs toward income tax credits and requires a state office to publish claim guidance.
What it does
Employers may count contracts with off-site child care centers toward tax credits for care for their workers. They must qualify for the federal credit and cannot charge workers for that care.
Eligible small businesses may claim a credit for 30% of qualifying child care costs, while other qualifying employers may claim 10%. Employers must also claim a construction-cost credit in the current or an earlier tax year.
The Governor's Office of Economic Opportunity must keep a public webpage with credit rules, claim instructions, and examples for employers.
Argument forEmployers could use the credits to help pay for care through off-site centers, with a larger share available to qualifying small businesses.
Argument againstEmployers could owe back part or all of their credits if they stop running an on-site child care center within five years.
More detail
Employers may count certain off-site child care costs toward the tax credits. Costs may include contracts with an off-site center, or with an intermediary that contracts with one or more centers, to care for the employer's workers. Costs may also include operating an on-site center; training and higher pay costs count only for employers that operate one. Employers must qualify for and claim the federal employer-provided child care credit. They cannot collect payment from employees or deduct child care costs from their pay for a facility tied to the credit. These provisions apply beginning January 1, 2026.
Qualifying employers may claim income tax credits for child care costs at different rates for small and other businesses. An eligible small business may claim 30% of qualifying child care costs; another qualifying employer may claim 10%. The credits apply to corporate and individual income taxes. The employer must also claim a credit for construction costs in the current or a previous tax year. The credit cannot exceed income tax owed, and any excess cannot be carried forward or back. These provisions apply beginning January 1, 2026.
The Governor's Office of Economic Opportunity must maintain a public webpage about the child care tax credits. The webpage provides information and resources for employers seeking the credits. The page must explain eligibility, how the state credits relate to the federal credit, and how to claim them, including deadlines, forms, and examples of ways employers may qualify. The webpage duty takes effect May 6, 2026, and does not apply retroactively.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Mar 26Governor Spencer Cox SignedBecame Law
- Mar 16House/ to GovernorTo Governor
- Mar 16House/ received enrolled bill from PrintingMinor
- Mar 12House/ enrolled bill to Printing
- Mar 12Enrolled Bill Returned to House or SenateMinor
- Mar 6Draft of Enrolled Bill Prepared
- Mar 6Bill Received from House for EnrollingMinor
- Mar 4House/ signed by Speaker/ sent for enrollingMajor
- Vote recorded Senate/ passed 2nd & 3rd readings/ suspension. Result: pass.Upper
- Mar 4House/ received from SenateMinor
- Mar 4Senate/ to House
- Mar 4Senate/ signed by President/ returned to HouseMajor
- Mar 4Senate/ passed 2nd & 3rd readings/ suspensionPassed Senate
- Mar 4Senate/ 2nd & 3rd readings/ suspensionMinor
- Feb 25Senate/ placed on 2nd Reading Calendar
- Feb 25Senate/ committee report favorable [Senate Revenue and Taxation Committee]Minor
- Feb 25Senate Comm - Favorable Recommendation [Senate Revenue and Taxation Committee]Minor
- Feb 20Senate/ to standing committee [Senate Revenue and Taxation Committee]Minor
- Feb 19Senate/ 1st reading (Introduced)Minor
- Feb 18Senate/ received from HouseMinor
- Vote recorded House/ passed 3rd reading. Result: pass.Lower
- Feb 18House/ to Senate
- Feb 18House/ passed 3rd readingPassed House
- Feb 18House/ floor amendment
- Feb 18House/ uncircled
- Feb 18House/ circled
- Feb 18House/ 3rd readingMinor
- Feb 10LFA/ fiscal note publicly available for HB0190S02
- Feb 10LFA/ fiscal note sent to sponsor for HB0190S02
- Feb 9House/ 2nd readingMinor
- Feb 9House/ comm rpt/ substituted [House Revenue and Taxation Committee]
- Feb 7House Comm - Favorable Recommendation [House Revenue and Taxation Committee]Minor
- Feb 7House Comm - Substitute Recommendation [House Revenue and Taxation Committee]Major
- Feb 6LFA/ bill sent to agencies for fiscal input for HB0190S02
- Feb 6LFA/ bill assigned to staff for fiscal analysis for HB0190S02
- Jan 30House/ to standing committee [House Revenue and Taxation Committee]Minor
- Jan 30Bill Substituted by Sponsor in House Rules Comm [House Rules Committee]Major
- Jan 23LFA/ fiscal note publicly available for HB0190S01
- Jan 22LFA/ fiscal note sent to sponsor for HB0190S01
- Jan 21LFA/ bill sent to agencies for fiscal input for HB0190S01
- Jan 21LFA/ bill assigned to staff for fiscal analysis for HB0190S01
- Jan 21House/ received fiscal note from Fiscal AnalystMinor
- Jan 20LFA/ fiscal note publicly available for HB0190
- Jan 20House/ 1st reading (Introduced)Minor
- Jan 16LFA/ fiscal note sent to sponsor for HB0190
- Jan 14House/ received bill from Legislative ResearchMinor
- Jan 8LFA/ bill sent to agencies for fiscal input for HB0190
- Jan 8LFA/ bill assigned to staff for fiscal analysis for HB0190
- Jan 8Numbered Bill Publicly Distributed
- Jan 8Bill Numbered but not DistributedIntroduced
Taxes & BudgetEconomy & Jobs