Nonrefundable corp tax credits for employer-provided child care, UTA LEG 59-7-627.
Minimum Tax Decrease
Decreased corporation's Utah taxable income from 4.55% to 4.5%, never under $100.
Applicable to domestic, foreign except for those exempt under UTA LEG 59-7-102.
Employer-Provided Child Care
Enacted nonrefundable corporate income tax credits for employer-provided child care.
Qualifying claimant is claimant, estate or trust that is an employer, qualifies for, claims federal employer-provided child care tax credit for current tax year per 26 USC 45F.
Allowed qualifying claimant carry forward, to next five taxable years, amount of tax credit as described that exceeds their income tax liability for the taxable year.
May claim a nonrefundable tax credit equal to 10% qualified child care expenditures.
10% of the qualified child care expenditures it incurred during the taxable year.
Only if it claims a tax credit per Subsection (2) for current or previous taxable year.
Cannot carry forward/back tax credit that exceeds income tax liability for taxable year.
If a recapture event happens within two taxable years after first taxable year in which qualifying claimant claims credit, must repay 100% of credit for any taxable year.
Further described recapture event provisions; repayment for recapture event to be made by qualifying claimant for the taxable year in which the recapture event occurs.
Legislative History
On Jan. 21, 2025, bill was introduced in House; on Feb. 27, 2025, bill passed House.
On Feb. 28, 2025, bill was introduced in Senate; on Mar. 5, 2025, bill passed Senate.
On Mar. 5, 2025, House concurred changes; on Mar. 7, 2025, enrolled bill to printing.
Effectiveness
Would be effective May 7, 2025, retrospective for tax year start on/after Jan. 1, 2025.
Mar. 26, 2025 UTA LEG Bill Approval
On Mar. 26, 2025, UTA LEG reported bill approval by governor, effective May 7, 2025.
