Vote Smart's Synopsis:

Vote to pass a bill that expands tax credits for businesses that offer free childcare in Utah.

Highlights:

• Authorizes a qualifying taxpayer to claim a nonrefundable tax credit equal to 20% of the qualified construction expenditures that they incurred during the tax year (Sec. 1). 

• Authorizes a qualifying taxpayer to claim a nonrefundable tax credit equal to (Sec. 1): 

• 30% of the qualified child care expenditures that were incurred during the taxable year, for a qualifying taxpayer that is a small business for the taxable year; or

• 10% of the qualified child care expenditures the qualifying taxpayer incurred during the taxable year if not qualifying as a small business.

• Restricts claims if a qualifying taxpayer exceeds the income tax liability for the taxable year (Sec. 1). 

• Requires a taxpayer to repay 100% of the tax credit received if a recapture event occurs (Sec. 1). 

• Authorizes a qualifying claimant to claim a nonrefundable tax credit equal to 20% of the qualified construction expenditures incurred during the taxable year (Sec. 2). 

• Authorizes a qualifying claimant to claim a nonrefundable tax credit equal to (Sec. 2): 

• 30% of the qualified child care expenses that incurred during the taxable year, as an eligible small business for the taxable year; 

• 10% of the qualified child care expenditures that incurred during the taxable year for a qualifying claimant that does not qualify as an eligible small business for the tax year. 

• Requires a qualifying claimant to repay 100% of the tax credit received if a recapture event occurs (Sec. 2). 

• Requires the office to develop and maintain a website where information and resources are located (Sec. 3). 

• Specifies that this Act takes effect on May 6, 2026 (Sec. 4). 

• Authorizes retrospective operation to January 1, 2026, excluding Subsection 2 (Sec. 5).

Full Bill Text