Utah Child Care Tax Incentives
Current for 2026 Tax Year • Last Updated: January 24, 2026
Private Innovation + Federal Credits! ALPLA was FIRST in Utah to offer child care stipends. Follow their lead with Federal 45F!
The 2026 Utah Strategy
Utah is a "Federal Only" state for tax credits, but that doesn't mean you're stuck. Utah prefers private innovation and grants over permanent tax credits. Companies like ALPLA are leading the way!
Claim a tax credit for 40% (Large Business) or 50% (Small Business) of qualified child care expenses, up to $600,000 annually.
Follow the ALPLA model: Tech + Stipends + 45F = Competitive advantage without waiting for state credits!
🏆 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 Formula: Tech Platform (TOOTRiS) + Monthly Stipend + Federal 45F Credit = 50%+ savings on your child care benefit!
📋 The "One Utah" Roadmap
Governor Cox's "One Utah" roadmap specifically lists child care access as an economic driver.
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 |
| Net Cost to ALPLA: | $150,000 |
That's $125/month per employee for a benefit that solves their biggest work-life challenge!
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 | 45F Credit (50%) | Net Cost |
|---|---|---|---|
| TOOTRiS Platform Subscription | $12,000 | -$6,000 | $6,000 |
| Employee Stipends ($300/mo × 50 employees) | $180,000 | -$90,000 | $90,000 |
| Resource & Referral Services | $8,000 | -$4,000 | $4,000 |
| Total Annual Investment | $200,000 | -$100,000 | $100,000 |
💰 The Utah Advantage
Total Investment: $200,000 | Federal 45F Credit: $100,000 | Net Cost: $100,000
That's 50% off your total investment—no state credit needed! Just follow the ALPLA model.
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
Utah's Child Care Resource & Referral network. Great resource for finding providers and understanding the landscape.
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.
Utah Section 45F FAQ
Ready to Follow ALPLA's Lead?
Use our calculator to estimate your potential federal 45F savings. Then implement the ALPLA model: Tech Platform + Stipends + Federal Credit = Competitive advantage!