Utah House OKs bill expanding tax credit for businesses that provide child care

February 19, 2026 - 05:44

The Utah House of Representatives has given strong approval to legislation significantly enhancing a tax credit for businesses that provide child care services to their employees. The bill aims to address the state's ongoing child care shortage by offering a greater financial incentive for employers to invest in solutions.

Under the proposed expansion, the existing tax credit would be substantially increased. The measure seeks to make it more feasible for companies, both large and small, to establish on-site daycare facilities, offer subsidized care slots, or contract with local providers to secure care for their workforce. Proponents argue that accessible, affordable child care is a critical component of workforce participation and economic stability for families.

Supporters of the bill emphasize that this is a vital step toward supporting working parents and strengthening Utah's economy. By reducing a major barrier to employment, they contend, businesses can better attract and retain talent. The legislation now moves to the Utah Senate for further consideration. If passed into law, it would mark a significant policy effort to leverage the private sector in solving a pressing public need.