Budget & Taxes (Business Taxes)

HB 252 creates a nonrefundable individual income tax credit for Utah businesses that pay tariffs on imported goods but do not pass those costs to customers. It applies to businesses importing items held for sale or used in operations, such as manufacturers or retailers. To claim the credit, businesses must first obtain written certification from the Governor's Office of Economic Opportunity verifying their eligibility and the credit amount, which equals the total qualifying tariff payments multiplied by a set percentage. The credit is limited to the business's tax liability for the year and cannot be carried forward, with certification requirements effective retroactively from January 1, 2026.

HB 190 expands Utah's tax credit for employers providing child care by increasing the credit rate for small businesses to 30% (from 10%) of eligible child care costs and allowing credits for off-site child care facilities employers don't own. It removes a previous requirement that employers must have claimed a construction-related credit to qualify for the child care credit. The bill directly affects Utah employers who provide child care for employees, particularly small businesses meeting IRS Section 45F criteria. The changes apply retroactively and make no new state funding appropriations.

SB 116 modifies Utah's individual income tax rates based on actual state revenue performance. It directly affects Utah taxpayers by setting a formula that lowers the tax rate by 0.01% for every $22.2 million (or more) the state collects in revenue above its forecasted amount. The bill requires the State Tax Commission to annually calculate and publish the adjusted rate, using specific revenue thresholds and cost-per-0.01% figures for fiscal years 2027-2036. This mechanism applies to tax years beginning in 2027 through 2038, with rates initially set at 4.5% for 2027-2028 and then adjusted annually based on revenue outcomes.

SB 60 lowers Utah's corporate and individual income tax rates from 4.5% to 4.45% for tax years beginning on or after January 1, 2026. It directly affects corporations operating in Utah and residents filing state income taxes. The bill reduces the tax rate on both corporate franchise income and individual state taxable income, with the change applying retroactively to the 2026 tax year. No new state spending is involved, as the bill only adjusts existing tax rates.

SB 16 amends the process for agricultural businesses to claim tax refunds on motor fuel used for nonhighway farming activities. It requires claimants to retain original invoices as proof and limits each business to one annual refund claim. The bill specifies that refunds are processed only after commission approval of the claim. This directly affects farmers and agricultural operations purchasing fuel for off-highway use, streamlining their existing refund procedure without creating new tax credits.