HB0316 amends Utah’s nonrefundable child tax credit to expand eligibility to younger children. Under current law, the credit applies to qualifying children who are at least one year old and under five; this bill changes that age range to children under six years old, which would allow taxpayers to claim the $1,000 credit for children from birth through age five, so long as the child is otherwise eligible for the federal child tax credit and the taxpayer meets the income and filing-status requirements.
The bill keeps the credit nonrefundable and preserves the existing phaseout structure. It does not create a new appropriation, and it applies retroactively to tax years beginning on or after January 1, 2025, with an effective date of May 7, 2025. The measure amends only Section 59-10-1047 of the Utah Code, so its legal effect is limited to the state individual income tax credit for child dependents.
Impact
HB0316 would broaden the pool of taxpayers eligible for Utah’s child tax credit by extending coverage to an additional age cohort of dependent children. In practical terms, families with infants and five-year-olds would be able to claim the same $1,000 nonrefundable credit already available for qualifying children, subject to the existing income-based reduction and tax liability limits. The bill modifies state tax law only and does not affect federal tax rules, but it ties eligibility to the federal child tax credit definition under Internal Revenue Code Section 24.
Sentiment
The available voting history suggests strong overall support for the bill. It received a favorable recommendation in House committee by a 5-3 vote and then passed the House on third reading by a wide 68-1 margin. No committee transcript was provided, but the vote totals indicate that most legislators viewed the expansion of the child tax credit favorably.
Contention
The main point of policy contention appears to be whether the state should expand a tax benefit to a broader set of families with young children, especially given that the credit is nonrefundable and therefore only benefits taxpayers with sufficient liability. The committee vote shows some initial opposition, likely reflecting concerns about tax policy, fiscal effects, or the scope of the credit expansion, but the near-unanimous floor vote suggests those concerns were limited or outweighed by support for family tax relief.