Bill > HB0389

This bill establishes a nonrefundable tax credit for employers who provide child care services, specifically targeting businesses that invest in child care facilities or related expenses. The bill defines key terms such as "qualified child care facility" (a center-based child care facility located near the employer's office) and "qualified child care expenditures" (operating costs including employee training and compensation). Qualifying employers who claim the federal employer-provided child care tax credit can receive two types of tax credits: a 20% credit for qualified construction expenditures (such as acquiring or expanding child care facilities) which can be carried forward for up to five years, and a 10% credit for qualified child care operating expenditures, which cannot be carried forward. The tax credit applies to both corporate income tax and individual income tax, with specific provisions for nonresident and part-year resident taxpayers to apportion the credit based on their state income tax percentage. The bill will take effect on May 7, 2025, and will have retrospective operation for taxable years beginning on or after January 1, 2025, meaning employers can claim the credit for the 2025 tax year and potentially beyond.

Budget and Finance

https://le.utah.gov/~2025/bills/static/HB0389.html