Bill > HB0316

This bill modifies Utah's existing nonrefundable child tax credit by updating the definition of a "qualifying child" to include children under six years old (previously defined as at least one year old but younger than five years old). The bill maintains the $1,000 tax credit per qualifying child, but keeps the existing income-based reduction mechanism where the credit decreases by 10 cents for every dollar that a taxpayer's modified adjusted gross income exceeds certain thresholds ($27,000 for married filing separately, $43,000 for single or head of household, and $54,000 for joint filing status). The legislation specifies that taxpayers cannot carry forward or carry back any tax credit amount that exceeds their tax liability. The bill is set to take effect on May 7, 2025, with retrospective operation for taxable years beginning on or after January 1, 2025, meaning it will apply to tax returns filed for the 2025 tax year and potentially provide a slightly expanded child tax credit for families with young children.

Budget and Finance

https://le.utah.gov/~2025/bills/static/HB0316.html