SALT LAKE CITY — A bill incentivizing Utah businesses to provide their employees with child care cleared the House Wednesday, even as a handful of lawmakers voiced concerns about the price tag and the size of state government.
Lawmakers have had their eye on affordability during this year’s legislative session, and Rep. Jason Thompson said HB190 would help reduce child care costs for families with young children.
“When young families cannot afford housing, cannot afford child care and cannot afford financial stability, they don’t simply absorb the costs. Increasingly, they leave when that happens,” Thompson, R-River Heights, said. “Child care is not a luxury. It isn’t a perk. It’s infrastructure — just like roads, utilities and schools. Infrastructure our families and our businesses rely on.”
Thompson’s bill would boost the state tax credit for businesses that offer child care benefits or build child care facilities, allowing companies to stack that relief on top of a federal tax credit approved last year. He said the bill would bring Utah more in line with President Donald Trump’s approach to child care.
Some GOP lawmakers remained unconvinced.
“This is not a good return on investment,” said Rep. Norm Thurston, R-Provo, referring to the $2.9 million annual expense.
He also questioned whether the tax incentive would actually result in more child care being made available, given that Utah has a shortage of providers.
“I’m convinced this is not the proper role of government,” added Rep. Michael Petersen, R-North Logan. “Despite the fact that my favorite president has been supporting this kind of thing, I struggle with this.”
Petersen and a few other lawmakers suggested that the goal of affordability would be achieved better by providing a general tax cut.
“Seems like we’re using incentives in so many different ways that it really disrupts the market,” said Rep. Kay Christofferson, R-Lehi.
Thompson agreed that lawmakers should expand child tax credits, but pushed back on arguments that his bill added to the size of government.
“This is not government child care,” he said. “This is us saying, ‘Businesses, keep more of your hard-earned money, and if you choose to provide child care for your employees, then there’s an incentive there for you choosing to do that.”
HB190 was amended on the floor to include a provision that would bar businesses from receiving the tax credit if they charge employees or deduct from their pay to help cover child care services. Rep. Nicholeen Peck, R-Tooele, suggested the change, saying businesses could “double-dip” without it.
“They could get paid by someone to provide child care at their establishment and get the tax credit from the government, so we’re closing that up,” she said.
The bill passed the House 48-21 and now heads to the Senate for consideration. The legislative session ends on March 6.
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