SALT LAKE CITY – A new legislative proposal aims to address Utah’s ongoing child care shortage by offering tax incentives to providers who expand their facilities.
Rep. Jason Thompson (R) is spearheading the bill, emphasizing the need to boost child care availability by focusing on infrastructure expansion. Currently, only 14% of the demand for child care in the state is being met, and Thompson believes this measure could help close the gap.
“This is about increasing the supply,” Thompson said. “We need to encourage providers to expand so we can serve more families.”
How the Tax Credit Works
Under the proposed bill, child care businesses that build new additions or renovate spaces to accommodate more children would be eligible for a 20% tax credit. The goal is to encourage private sector investment to help alleviate the strain on families struggling to find available child care options.
“We’re giving businesses an incentive to step up and invest,” Thompson explained.
Preventing Misuse of the Tax Credit
To ensure the program is used as intended, safeguards are in place to prevent misuse. Only facilities that genuinely expand their child care capacity will qualify.
“This tax credit is specifically designed to benefit businesses that are making real investments to increase child care access,” Thompson reassured lawmakers.
Economic and Social Impact
In addition to helping parents find child care, Thompson argues that the initiative could also boost Utah’s economy. With more parents able to work, the state could see an increase in income tax revenue.
The bill successfully passed committee review and now moves forward in the legislative process. If approved, it could serve as a critical step toward solving Utah’s child care shortage while encouraging economic growth .
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