 | Fiscal Note1st Sub. H.B. 389 (Buff) 2025 General Session Child Care Business Tax Credit by Thompson, Jason E. |  |
| Ongoing | One-time | Total | |
|---|---|---|---|
| Net GF/ITF/USF (rev.-exp.) | $(2,315,100) | $190,200 | $(2,124,900) |
| Revenues | FY2025 | FY2026 | FY2027 |
| Income Tax Fund | $0 | $(2,200,000) | $(2,200,000) |
| Income Tax Fund, One-time | $0 | $200,000 | $0 |
| Total Revenues | $0 | $(2,000,000) | $(2,200,000) |
Enactment of this legislation provides a nonrefundable corporate and individual income tax credit for employer-provided child care which could reduce Income Tax Fund revenues by an estimated $2 million in FY 2026 and $2.2 million in FY 2027.
| Expenditures | FY2025 | FY2026 | FY2027 |
| Income Tax Fund | $0 | $115,100 | $115,100 |
| Income Tax Fund, One-time | $0 | $9,800 | $0 |
| Total Expenditures | $0 | $124,900 | $115,100 |
Enactment of this legislation could cost the Tax Commission $115,100 ongoing from the Income Tax Fund beginning in FY 2026 for staff time to administer the credit, and $9,800 one-time in FY 2025 for system updates.
| FY2025 | FY2026 | FY2027 | |
| Net All Funds (rev-exp) | $0 | $(2,124,900) | $(2,315,100) |
Enactment of this legislation likely will not result in direct, measurable costs for local governments.
Enactment of this legislation could allow employers with qualified child care expenditures to claim a nonrefundable income tax credit equal to 10% of qualified child care expenditures and 20% of the expenditures to acquire, construct, rehabilitate, or expand property for a qualified child care facility. Taxpayers with qualified child care or construction expenditures could see an estimated $2 million decrease in income tax liability in the aggregate beginning in tax year 2025.
Enactment of this legislation likely will not change the regulatory burden for Utah residents or businesses.
This bill does not create a new program or significantly expand an existing program.