Utah families are paying more for child care than most budgets can absorb – and in many parts of the state, licensed care is simply not available. Over five consecutive sessions, the Utah Legislature has passed a series of bills targeting the problem from multiple directions: expanding tax credits for families and employers, removing regulatory barriers for providers, and investing in the child care workforce. The 2026 session added the most significant employer-side tools to date.
What Did the Legislature Pass in 2026?
HB 190, the Child Care Business Tax Credit, carried by Rep. Jason Thompson in the House, expanded the state tax credit for employer-provided child care. Small businesses can now claim a 30% state credit, up from 10%, on qualified child care expenditures. The bill also extended the credit to off-site facilities, not just those built on employer property, removing a significant barrier to employer participation.
Stacked with the existing federal Employer-Provided Childcare Tax Credit, small businesses can now receive a combined credit of up to 80% of qualified child care costs paid on behalf of employees.
“Utah is bringing communities and the private sector together to find a long-term, realistic solution for our child care challenges,” Thompson said.
HB 379, carried by Rep. Tracy Miller, exempted child care providers from the requirement to operate a restaurant-grade kitchen, a costly regulatory burden that had discouraged providers from opening or expanding, while directing the Department of Health & Human Services to work with providers on appropriate administrative rules.
How Did Utah Get Here? A Five-Year Legislative Record
2022: Capacity Expansion and Cutting Red Tape
HB 15 prohibited local governments from imposing licensing or certification requirements on child care programs beyond a standard business license, eliminating a patchwork of local rules that had complicated provider entry. The bill raised the capacity limit for residential child care providers to eight children, removed restrictions on the number of infants a certified provider could serve, and required housing and transportation reinvestment zone proposals to address child care access. HB 21 appropriated $4.2 million to test drinking water for lead in schools and child care centers statewide.
2023: Establishing the Child Tax Credit
HB 170 enacted Utah’s first nonrefundable child care tax credit for children ages 1–3, establishing that state tax policy would directly account for early childhood care costs.
2024: Broader Eligibility and Provider Flexibility
HB 153 raised the age eligibility for the child tax credit from children ages 1–4 to 1–5. It also made DHHS certification for residential child care optional rather than mandatory, lowering the barrier for home-based providers to enter the market.
2025: Employer Credits, Workforce Alignment, and Infrastructure
HB 106, carried by Rep. Kay Christofferson in the House, expanded the child tax credit to cover children ages 0–5, closing the gap for the most expensive year of care, and created nonrefundable tax credits for employer-provided child care. HB 410, sponsored by Rep. Tracy Miller, counted time employed as a preschool teacher in a licensed child care program as equivalent to public school employment for relicensing purposes, addressing a staffing retention obstacle. It also authorized housing and transit reinvestment zone funds for child care facility construction and expansion.
2026: Employer Incentives and Provider Relief
HB 190 tripled the employer tax credit for small businesses and extended it to off-site facilities. While HB 379 eliminated the restaurant-grade kitchen requirement for providers.
What Does the Legislation Mean for Families, Employers, and Providers??
The five-year body of legislation addresses the child care gap from multiple directions simultaneously – reducing costs for families through tax credits, removing regulatory barriers for providers, drawing employers into the solution through financial incentives, and stabilizing the provider workforce.
The approach is market-oriented by design. Rather than building a state-run system, Utah has worked to lower barriers for providers, engage employers as partners, and make the tax code reflect the real costs families carry.
“Our families need us to step up,” Thompson said.
The Utah House Majority made supporting Utah families a 2026 priority. The five years of child care legislation that preceded this session, and the employer tax credit, provider relief, and capacity expansion that came out of it, reflect that commitment. The work continues.
Frequently Asked Questions About Utah's Child Care Legislation
What is HB 190 and how does it work?
HB 190 expands the state tax credit for employers who provide or pay for child care for their employees. Small businesses can now claim a 30% state credit — up from 10% — on qualified expenses, and the credit now applies to off-site facilities, not just employer-built ones. Combined with the existing federal credit, small businesses can receive up to 80% of qualified child care costs back in combined state and federal credits.
Why is child care expensive in Utah?
Center-based infant care averages $14,160 per year in Utah. Care for two young children can exceed $24,000 annually. Providers face high operating costs — staffing, facility requirements, and regulatory compliance — that keep prices elevated even as demand outstrips supply.
How large is Utah's child care supply gap?
Licensed providers meet about 36% of statewide needs. An estimated 77% of Utahns live in areas without adequate licensed care — either no providers or more than three children per available slot. Four rural Utah counties have no licensed providers at all.
What has the Legislature done on child care since 2022?
Since 2022, the Legislature has removed local licensing barriers for providers, expanded residential provider capacity limits, created and expanded the child tax credit for families with young children ages 0–5, established and increased employer tax credits for child care, aligned child care workforce relicensing with public school standards, authorized housing and transit reinvestment funds for child care facility construction, and eliminated the restaurant-grade kitchen requirement for providers.
For more on the Utah House Majority’s 2026 session priorities, visit the House Majority website. To read the official bill text, visit le.utah.gov.