All Roll Calls
Yes: 168 • No: 32
UtahH.B. 1062025 General SessionHouseWALLET
Income Tax Revisions
Sponsored By: Kay J. Christofferson (Republican)
Signed by Governor
BusinessChild CareCorporate TaxIncome TaxRevenue and TaxationIndividual Income TaxTax Credits
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 3 benefits, 0 costs, 1 mixed.
More young children qualify for tax relief
Utah expands its credit of up to $1,000 per child to cover all qualifying children under six at year-end. This adds children under one and children age five; each child must also qualify for the federal child tax credit. The credit shrinks by 10 cents per dollar of modified adjusted gross income above the filing-status threshold. Those thresholds remain $27,000 for married filing separately, $43,000 for single or head of household, and $54,000 for joint filers. The credit only offsets your Utah tax bill; unused amounts cannot carry forward or back. The law takes effect May 7, 2025, and applies to tax years beginning on or after January 1, 2025.
Utah households pay lower income taxes
Utah's individual income tax rate falls from 4.55% to 4.5% of state taxable income. That saves $5 for every $10,000 of taxable income, before credits. The law takes effect May 7, 2025, and applies to tax years beginning on or after January 1, 2025. Existing exemptions from individual income tax remain.
Utah corporations pay lower income taxes
Utah's corporate franchise and income tax rates fall from 4.55% to 4.5% of Utah taxable income. The $100 minimum tax stays in place, and exempt corporations remain exempt. The law takes effect May 7, 2025, and applies to tax years beginning on or after January 1, 2025.
Employer child care credits require lasting operations
Eligible employers get new Utah tax credits for center-based child care facilities in Utah. Corporations and employers filing through individual income taxes, estates, or trusts qualify. Employers must claim the federal employer-provided child care credit in the same tax year. The construction credit covers 20% of qualified costs for property eligible for depreciation or amortization. Unused construction credit carries forward for up to five tax years. A separate credit covers 10% of qualified operating costs, including specified training and compensation costs. Employers must claim the construction credit in the current or a prior year to claim the operating credit. Both credits only offset Utah tax owed; unused operating credit cannot carry forward or back. Nonresident and part-year individual filers, and nonresident estates or trusts, receive only their Utah-apportioned credit. Employers must operate the facility for at least five consecutive tax years after first claiming a credit or face repayment. Repayment is 100% within two tax years, 75% after more than two but fewer than three years, 50% after more than three but fewer than four years, and 25% after more than four but fewer than five years. Repayment is due in the tax year the repayment-triggering event occurs. The law takes effect May 7, 2025, and applies to tax years beginning on or after January 1, 2025.
Sponsors & Cosponsors
Sponsor
Kay J. Christofferson
Republican • House
Cosponsors
Daniel McCay
Republican • Senate
Roll Call Votes
House vote • 3/5/2025
House/ concurs with Senate amendment
Yes: 58 • No: 13
Senate vote • 3/5/2025
Senate/ passed 2nd & 3rd readings/ suspension
Yes: 23 • No: 6
Senate vote • 3/5/2025
Senate/ substitute adoption failed
Yes: 0 • No: 0
Senate vote • 3/4/2025
Senate Comm - Substitute Recommendation
Yes: 4 • No: 0
Senate vote • 3/4/2025
Senate Comm - Favorable Recommendation
Yes: 4 • No: 0
House vote • 2/27/2025
House/ uncircled
Yes: 0 • No: 0
House vote • 2/27/2025
House/ substituted
Yes: 0 • No: 0
House vote • 2/27/2025
House/ substituted
Yes: 0 • No: 0
House vote • 2/27/2025
House/ passed 3rd reading
Yes: 61 • No: 11
House vote • 2/26/2025
House/ circled
Yes: 0 • No: 0
House vote • 2/25/2025
House Comm - Favorable Recommendation
Yes: 8 • No: 2
House vote • 2/25/2025
House Comm - Substitute Recommendation
Yes: 10 • No: 0
House vote • Unknown
House/ substituted
Yes: 0 • No: 0
House vote • Unknown
House/ substituted
Yes: 0 • No: 0
Senate vote • Unknown
Senate/ substitute adoption failed
Yes: 0 • No: 0
House vote • Unknown
House/ uncircled
Yes: 0 • No: 0
House vote • Unknown
House/ circled
Yes: 0 • No: 0
Actions Timeline
Governor Signed
3/26/2025House/ to Governor
3/12/2025HouseHouse/ received enrolled bill from Printing
3/12/2025HouseHouse/ enrolled bill to Printing
3/7/2025HouseEnrolled Bill Returned to House or Senate
3/7/2025Draft of Enrolled Bill Prepared
3/6/2025Bill Received from House for Enrolling
3/6/2025House/ signed by Speaker/ sent for enrolling
3/6/2025HouseHouse/ received from Senate
3/6/2025HouseSenate/ to House
3/6/2025SenateSenate/ signed by President/ returned to House
3/6/2025SenateSenate/ received from House
3/6/2025SenateHouse/ to Senate
3/5/2025HouseHouse/ concurs with Senate amendment
3/5/2025HouseHouse/ placed on Concurrence Calendar
3/5/2025HouseHouse/ received from Senate
3/5/2025HouseSenate/ to House with amendments
3/5/2025SenateSenate/ passed 2nd & 3rd readings/ suspension
3/5/2025SenateSenate/ substitute adoption failed
3/5/2025SenateSenate/ 2nd & 3rd readings/ suspension
3/5/2025SenateSenate/ Rules to 2nd Reading Calendar
3/5/2025SenateSenate/ 2nd Reading Calendar to Rules
3/5/2025SenateSenate/ placed on 2nd Reading Calendar
3/5/2025SenateSenate/ comm rpt/ substituted
3/5/2025SenateSenate Comm - Favorable Recommendation
3/4/2025Senate
Bill Text
Enrolled
3/7/2025
Substitute #4
3/4/2025
Substitute #5
3/4/2025
Substitute #3
2/27/2025
Substitute #2
2/26/2025
Substitute #1
2/24/2025
Introduced
1/6/2025
Related Bills
H.B. 110, Combined Basic Tax Rate Reduction
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H.B. 131, Talent Ready Utah Program Amendments
H.B. 176, County Classification Amendments
H.B. 166, Trailer Registration and Uniform Fee Amendments
H.B. 119, Solar Panel Restrictions in Homeowners Associations Amendments