Enrolled Copy H.B. 290 1

Child Tax Credit Amendments 2026 GENERAL SESSION STATE OF UTAH Chief Sponsor: Tracy J. Miller Senate Sponsor: Lincoln Fillmore Cosponsor: Steve Eliason Calvin Roberts Cheryl K. Acton Doug Fiefia Jake Sawyer Tiara Auxier Stephanie Gricius David Shallenberger Heidi Balderree Jill Koford Troy Shelley Melissa G. Ballard Trevor Lee Lisa Shepherd Brady Brammer Anthony E. Loubet Jason E. Thompson Tyler Clancy Clinton D. Okerlund Doug Welton Paul A. Cutler Karen M. Peterson Stephen L. Whyte Ariel Defay Candice B. Pierucci 2

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LONG TITLE 4

General Description: 5

This bill modifies the individual income tax credit for child dependents. 6

Highlighted Provisions: 7

This bill: 8 ▸ expands eligibility for the child tax credit by increasing the thresholds for the 9 income-based phaseout. 10

Money Appropriated in this Bill: 11

None 12

Other Special Clauses: 13

This bill provides retrospective operation. 14

Utah Code Sections Affected: 15

AMENDS:

H.B. 290 Enrolled Copy 16

59-10-1047, as last amended by Laws of Utah 2025, Chapter 407 17

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Be it enacted by the Legislature of the state of Utah: 19

Section 1. Section 59-10-1047 is amended to read: 20

59-10-1047 . Nonrefundable child tax credit. 21

(1) As used in this section: 22 (a) "Joint filing status" means the same as that term is defined in Section 59-10-1018. 23 (b) "Head of household filing status" means the same as that term is defined in Section 24 59-10-1018. 25 (c) "Married filing separately status" means a married individual who: 26 (i) does not file a single federal individual income tax return jointly with that married 27 individual's spouse for the taxable year; and 28 (ii) files a single federal individual income tax return for the taxable year. 29 (d) "Modified adjusted gross income" means the sum of the following for a claimant or, 30 if the claimant's federal individual income tax return is allowed a joint filing status, 31 the claimant and the claimant's spouse: 32 (i) adjusted gross income for the taxable year for which a tax credit is claimed under 33 this section; 34 (ii) any interest income that is not included in adjusted gross income for the taxable 35 year described in Subsection (1)(d)(i); and 36 (iii) any addition to adjusted gross income required by Section 59-10-114 for the 37 taxable year described in Subsection (1)(d)(i). 38 (e) "Qualifying child" means an individual: 39 (i) with respect to whom the claimant is allowed to claim a tax credit under Section 40 24, Internal Revenue Code, on the claimant's federal individual income tax return 41 for the taxable year; and 42 (ii) who is under six years old on the last day of the claimant's taxable year. 43 (f) "Single filing status" means a single individual who files a single federal individual 44 income tax return for the taxable year. 45

(2) Subject to Section 59-10-1002.2, a claimant may claim a nonrefundable tax credit of 46 $1,000 for each qualifying child. 47

(3) A claimant may not carry forward or carry back the amount of the tax credit that 48 exceeds the claimant's tax liability. 49

(4) The tax credit allowed by Subsection (2) claimed on a return filed under this [part] - 2 -

Enrolled Copy H.B. 290 50 chapter shall be reduced by $.10 for each dollar by which modified adjusted gross 51 income for purposes of the return exceeds: 52 (a) for a federal individual income tax return that is allowed a married filing separately 53 status, [$27,000] $30,500; 54 (b) for a federal individual income tax return that is allowed a single filing status or head 55 of household filing status, [$43,000] $49,000; and 56 (c) for a federal individual income tax return that is allowed a joint filing status, [$54,000] 57 $61,000. 58

Section 2. Effective Date. 59

This bill takes effect on May 6, 2026. 60

Section 3. Retrospective operation. 61

This bill has retrospective operation for a taxable year beginning on or after January 1, 62

2026. - 3 -