Full text of Utah Utah Code § 59-10-1048 — Nonrefundable tax credits for employer-provider child care., with citation guidance and answers to common questions.
§ 59-10-1048. Nonrefundable tax credits for employer-provider child care.
Effective 1/1/2026 59-10-1048.
Nonrefundable tax credits for employer-provider child care.
(1)
As used in this section:
(a)
"Eligible small business" means the same as that term is defined in Section 45F, Internal Revenue Code.
(b)
"Qualified child care expenditure" means the same as that term is defined in Section 59-7-627.
(c)
"Qualified child care facility" means the same as that term is defined in Section 59-7-627.
(d)
"Qualified construction expenditure" means the same as that term is defined in Section 59-7-627.
(e)
"Qualifying claimant" means a claimant, estate, or trust that:
(i)
is an employer;
(ii)
qualifies for and claims the federal employer-provided child care tax credit described in Section 45F, Internal Revenue Code, for the current taxable year; and
(iii)
does not obtain payment from an employee or deduct from an employee's salary or wages for child care services, with respect to any qualified child care facility for which the claimant, estate, or trust claims a tax credit under this section.
(f)
"Recapture event" means the same as that term is defined in Section 59-7-627.
(g)
"Third party provider" means the same as that term is defined in Section 59-7-627.
(2)
(a)
A qualifying claimant may claim a nonrefundable tax credit equal to 20% of the qualified construction expenditures the qualifying claimant incurred during the taxable year.
(b)
A qualifying claimant may carry forward, to the next five taxable years, the amount of the qualifying claimant's tax credit described in this Subsection (2) that exceeds the qualifying claimant's income tax liability for the taxable year.
(3)
(a)
A qualifying claimant may claim a nonrefundable tax credit equal to:
(i)
30% of the qualified child care expenditures the qualifying claimant incurred during the taxable year, for a qualifying claimant that qualifies as an eligible small business for the taxable year; or
(ii)
10% of the qualified child care expenditures the qualifying claimant incurred during the taxable year, for a qualifying claimant that does not qualify as an eligible small business for the taxable year.
(b)
A qualifying claimant may not carry forward or carry back the tax credit described in this Subsection (3) that exceeds the qualifying claimant's income tax liability for the taxable year.
(4)
(a)
(i)
If a recapture event happens within two taxable years after the first taxable year in which the qualifying claimant claims a tax credit under this section, a qualifying claimant shall repay 100% of the tax credit a qualifying claimant receives under this section for any taxable year.
(ii)
If a recapture event happens more than two taxable years but fewer than three taxable years after the first taxable year in which the qualifying claimant claims a tax credit under this section, a qualifying claimant shall repay 75% of the tax credit a qualifying claimant receives under this section for any taxable year.
(iii)
If a recapture event happens more than three taxable years but fewer than four taxable years after the first taxable year in which the qualifying claimant claims a tax credit under this section, a qualifying claimant shall repay 50% of the tax credit a qualifying claimant receives under this section for any taxable year.
(iv)
If a recapture event happens more than four taxable years but fewer than five taxable years after the first taxable year in which the qualifying claimant claims a tax credit under this section, a qualifying claimant shall repay 25% of the tax credit a qualifying claimant receives under this section for any taxable year.
(b)
A qualifying claimant shall make a payment for a recapture event for the taxable year in which the recapture event occurs.
Frequently Asked Questions About Utah § 59-10-1048
What does Utah Code § 59-10-1048 cover?
Section 59-10-1048 ("Nonrefundable tax credits for employer-provider child care.") is part of the Utah Code, the codified statutory law of Utah. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Utah § 59-10-1048?
A common citation format is "Utah Code § 59-10-1048" (Utah). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Utah law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Utah official source linked on this page or consult a licensed Utah attorney.
How does Utah § 59-10-1048 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Utah can advise on how this section applies to you. Contact your state or local bar association for a referral.
