The 2026 Utah Strategy
Utah just launched a 25% state tax credit (SB 153) that stacks with the federal 45F credit! Combined with private innovation and grants, Utah employers now have a powerful triple play.
Claim a tax credit for 40% (Large Business) or 50% (Small Business) of qualified child care expenses, up to $600,000 annually.
25% state income tax credit on qualified child care expenses. Capped at $100,000/year per employer. Provider must be licensed or certified by the state.
🆕 NEW for 2026: Utah Employer Child Care Tax Credit (SB 153)
Effective for the 2026 tax year, Utah has officially launched a state-level Employer Child Care Tax Credit:
- Credit Rate: 25% of qualified child care expenses paid for employees
- Cap: $100,000 per year per employer
- The Stack: 50% Federal (small biz) + 25% State = 75% total coverage!
- Requirement: Provider must be licensed or certified by the state
Pro Tip: Use the Care About Childcare database to verify a provider's "Top Star" rating—this can also help qualify for additional local innovation grants.
🏆 Utah's "Private Sector First" Mentality
Utah doesn't wait for government programs. Companies here take action and use federal credits to offset costs. ALPLA proved it works!
The 2026 Formula: Tech Platform (TOOTRiS) + Monthly Stipend + Federal 45F Credit (50%) + NEW State SB 153 Credit (25%) = 75% savings on your child care benefit!
📋 The "One Utah" Roadmap + Child Care Business Support Initiative
Governor Cox's "One Utah" roadmap specifically lists child care access as an economic driver. For 2026, the Governor's Office has launched the "Utah Child Care Business Support Initiative":
- Free business consulting for employers looking to build or renovate facilities
- Site-selection assistance funded through end of 2026
- Contact the Utah Office of Child Care (OCC) for these "concierge" business services
Pro Tip: Align your internal proposal with the "One Utah" economic vision when pitching to your CFO—it shows you're supporting state economic priorities!
🏭 Utah Success Story: ALPLA (Brigham City)
The FIRST Business in Utah to Offer Child Care Financial Assistance
The ALPLA Model
- The Company: ALPLA, a global packaging manufacturer with a major plant in Brigham City
- The Challenge: Shift workers couldn't find care that matched their schedules—a common Utah problem
- The Solution: Partnered with TOOTRiS to give employees real-time access to child care inventory
- The Financial Support: Monthly stipend to eligible employees to offset the cost of care
- The Impact: Immediately differentiated them in a tight manufacturing labor market
💡 The Lesson
"You don't need a corporate campus in Lehi to innovate. ALPLA proved that a manufacturing plant in Brigham City can use the Federal 45F Credit to subsidize a tech-enabled stipend, solving the recruitment puzzle without building a new center."
📰 In the News
ALPLA's groundbreaking program was featured on Fox 13 News as the first Utah company to adopt this innovative approach.
📊 ALPLA Math
| Monthly Stipend per Employee: | $250 |
| Annual Cost (100 employees): | $300,000 |
| Federal 45F Credit (50%): | -$150,000 |
| NEW Utah SB 153 Credit (25%): | -$75,000 |
| Net Cost to ALPLA: | $75,000 |
With the new SB 153 state credit, that's just $62.50/month per employee—down from $125! The 75% stack changes everything.
Utah Grant Landscape
Utah prefers grants and public-private partnerships over permanent tax credits. Here's where to look for funding:
👶 Utah Office of Child Care (OCC)
Frequently releases stabilization or innovation grants. Check for "Business Partnership" grants for companies that want to contract for slots.
OCC Website →🚀 Go Utah (Office of Economic Opportunity)
General business grants and economic development incentives. Child care can be part of workforce development proposals.
Go Utah →🏛️ Local Economic Development
Many Utah counties and cities offer incentives for businesses that improve workforce infrastructure, including child care.
📄 Federal Form 8882
File IRS Form 8882 to claim the federal Section 45F credit on your child care expenses.
IRS Form 8882 →Utah-Specific Example: The "ALPLA Model" for Your Company
A Silicon Slopes tech company follows ALPLA's lead with a stipend + platform approach.
| Investment Category | Annual Cost | Federal 45F (50%) | SB 153 (25%) | Net Cost |
|---|---|---|---|---|
| TOOTRiS Platform Subscription | $12,000 | -$6,000 | -$3,000 | $3,000 |
| Employee Stipends ($300/mo × 50 employees) | $180,000 | -$90,000 | -$45,000 | $45,000 |
| Resource & Referral Services | $8,000 | -$4,000 | -$2,000 | $2,000 |
| Total Annual Investment | $200,000 | -$100,000 | -$50,000 | $50,000 |
💰 The Utah Advantage
Total Investment: $200,000 | Federal 45F Credit: $100,000 | NEW SB 153 State Credit: $50,000 | Net Cost: $50,000
That's 75% off your total investment with the new state + federal stack!
Utah Compliance & Resources
📋 Licensing Requirements
All child care facilities must be licensed by the Utah Department of Health and Human Services.
Child Care Licensing →🔍 Find Licensed Providers
Search for licensed child care providers in Utah through the state's official database.
Provider Search →💼 Care About Childcare Utah
Verify a provider's "Top Star" rating here. Required for SB 153 credit—provider must be licensed or certified by the state.
Care About Childcare →📄 Federal Form 8882
File IRS Form 8882 to claim the federal Section 45F credit on your child care expenses.
IRS Form 8882 →Utah Child Care Landscape
Key Utah Markets
Employers in these Utah markets are leveraging the ALPLA model:
- Salt Lake City – Finance, healthcare, government, tech
- Silicon Slopes (Lehi/Provo) – Tech, software, startups
- Ogden – Manufacturing, aerospace, defense
- Brigham City – Manufacturing (ALPLA!), aerospace
- St. George – Healthcare, tourism, retirement services
- Logan – Education (USU), agriculture, manufacturing
Qualified Intermediary Platforms for 45F
Under the One Big Beautiful Bill Act (OBBBA) 2026 updates, employers can now claim Section 45F credits for expenses paid to qualified intermediary service providers—exactly what ALPLA did!
Child Care Marketplace Platforms
Technology platforms like TOOTRiS that connect employees with vetted providers—the ALPLA model!
Stipend Programs
Monthly stipends to employees for licensed care qualify for the federal credit. ALPLA's core strategy!
Resource & Referral Services
Agencies that help employees find care. Subscription fees qualify under 45F.
Benefits Administration
Third-party administrators that manage employer child care benefits. Administrative fees are 45F-eligible.