With the 2026 legislative session wrapped, The Policy Project celebrated a major win: four bills that provide meaningful support to Utah families. The one with the biggest impact for businesses is the newly passed Child Care Business Tax Credit (HB190).
Under the current federal structure, small businesses receive a 50% tax credit and large businesses receive 40%. HB190 enhances these benefits by providing an extra 30% tax credit for small businesses and 10% for large businesses at the state level. This means eligible small businesses can receive up to 80% back in tax credits, while large businesses can achieve up to a 50%.
Rising child care costs and limited options have left families stretched thin: Nearly 74% of Utah families with children under six say they need two incomes just to cover household expenses, and 75% of Utahns live in a child care desert. HB190 gives businesses the tools to step in, support employees and help keep families — and Utah’s workforce — thriving.
With that context, we sat down with Emily Bell McCormick, founder of The Policy Project, to discuss why affordable child care matters, how businesses can help, and why HB190 is a game-changer for Utah.
Can you break down what this tax credit looks like for a small business?
If I’m a small business in the state of Utah, I might say to my employees, “I’m going to give you $1,000 a month for your child care.” As a small business, I’m getting $800 back when I file my taxes. I mean, that’s a huge boon for bringing talent to the state of Utah. It’s a huge boon for the businesses not to lose employees. So really, it’s a massive win for the employees and employers, but it only costs [the company] $200, so it’s much more affordable. A larger company like Extra Space Storage would get a 50% tax credit.
Why is this the best solution for childcare affordability?
We’ve known for a long time that, other than families, the people who will feel the effects of child care issues are our employers, right? If my employees are missing work because their kid is sick or they can’t find child care, and they quit their job, that causes big problems for the economy.
We know businesses need to be part of the solution, but it’s been really hard to figure out. In the past, the way Utah and other states have solved this is [with] ... onsite child care. Well, that might not make sense for Mountain America Credit Union … or the Cheesecake Factory. They’re good at banking and food, but they’re not child care professionals. And so we helped craft a tax credit for businesses with a focus on small employers.
Why address affordable child care now?
I think there have been rumblings about [addressing child care] in the background for a long time, but this year the public really leaned into the conversation and helped people see past whatever old arguments were sticking around. This isn’t about being right or left — this is about families and the ability to survive in our state.
I think one of the messages that really resonated with legislators and made a big difference is maybe my generation is OK [financially], right? I’m 47. I mean, it isn’t paid off, but I’m in a home. But I look at my kids, and I don’t know if they’ll be able to afford to live in Utah. I definitely don’t know if they’ll be able to afford to buy a house in Utah. That’s something that’s becoming very real — whether you’re a legislator or a person who’s always had enough for yourself. I think we’re all starting to realize that. … If we don’t do it now, we’re going to lose our kids to other states. And we don’t want to do that. We want to keep them here as much as we can and be able to have those tight families. It’s just good for society.
Why is affordable child care something state government needs to get involved in?
It’s a huge, huge government failure if families aren’t thriving. It isn’t the government’s fault, but they’re a part of it. A lot of thinking has been, it’s not the job of the government to interfere with business, but we want a strong economy. And [lack of] child care is a market failure. There hasn’t been a market solution that’s solving this. That’s exactly when we, as a community of people, as the government, should help, because we have a gap. This is not being solved by any private business, so we do need to get involved and look at how to do this. I think that resonated, and we want businesses to pursue their core industry without having to get into child care.
From your vantage point, are businesses invested in helping employees with child care?
Businesses have been a big part of this conversation. And I think there was a very high interest in helping employees without having to become child care professionals. … How do you help businesses and help their employees? Utah has an incredible economy … but I think employers are feeling it, especially with these younger generations who don’t have a place for their kid, because if grandma was watching before, grandma’s working now. Everyone’s working.
Did all of the bills The Policy Project proposed pass?
HB214 … was such a cool bill. It was creating at-home child care facilities throughout Utah. A mom living in Daggett County, where there’s no child care … could babysit, but Utah is going to give $5,000 to make sure the fence is high enough, make sure she has two cribs, make sure she has all the things to get her [child care] business off the ground.
The reason it died was that there was a very small population of people who didn’t want people who started the businesses to have a background check. We said, you have to have a background check if you’re taking care of kids. That’s just basic safety. So that one’s a bummer.
Can we sustain this economy without continuing to address this issue?
I would say absolutely not. We are cruising for bruising. You know that idea of entropy? It’s that all things move toward chaos, unless there’s a force that acts upon them. I think this is entropy. It’s starting to unravel. And we need to put our arms around it and give it some direction. The economy won’t succeed if we’re not caring for our families. It will not. Businesses will not succeed if families are not cared for. And businesses should do their part. The government should do its part. But 100%, this is a workforce-economic issue without a question.
