Bill > HB0106

This bill makes several revisions to Utah's income tax laws, primarily focusing on tax rates and introducing new tax credits for employer-provided child care. The corporate and individual income tax rates are reduced from 4.55% to 4.5%, and a new tax credit is established for employers who invest in child care facilities. Specifically, qualifying employers can claim a 20% tax credit for qualified construction expenditures for child care facilities, which can be carried forward for up to five years if the credit exceeds their tax liability. Additionally, employers can claim a 10% tax credit for qualified child care expenditures, but only if they have previously claimed the construction expenditure credit. The bill includes a recapture mechanism that requires employers to repay a percentage of the tax credits if they fail to operate a qualifying child care facility for at least five consecutive years, with the repayment amount decreasing over time. The bill also updates the state's tax code to include these new provisions for both corporate and individual taxpayers, with an effective date of May 7, 2025, and retrospective application for taxable years beginning on or after January 1, 2025.

Budget and Finance

https://le.utah.gov/~2025/bills/static/HB0106.html