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- A Utah lawmaker proposes expanding the state's child tax credit to include more ages.
- The bill aims to support young families and lower-income households with up to $1,000 per child.
- The expansion will cost the state $4 million in reduced tax revenue.
SALT LAKE CITY — In an effort to support young families, a bill expanding child tax credit in Utah to include a wider age range of children was introduced in the Utah Legislature.
HB316 is sponsored by Rep. Mark Strong, R-Bluffdale, and if it passes, then the child tax credit will expand to include children both younger and older than were previously eligible.
"We are trying to give support to young families, it's just harder and harder to raise children," Strong said. "We'd also love to encourage young families to have children."
Strong did emphasize that the purpose of the child tax credit is to help lower income families.
"If a family can stay financially solvent, and then if they can stay emotionally solvent, children thrive," Strong said. "It has lasting effects upon the child, upon our schools, upon our economy, and onward."
Who would be eligible for the child tax credit under this new bill?
This bill essentially does one thing, and that is expanding the ages of children eligible for child tax credit. Under this bill all children under the age of 6 years old, including infants, would be eligible for the tax credit.
The child tax credit allows parents to claim a nonrefundable tax credit of up to $1,000 for each qualifying child.
Even though the effective date for the bill is May 7, the tax credit will apply for the taxable year starting back on Jan. 1.
Because the child tax credit is meant to help lower income families, there are reductions for the tax credit based on if the claimants income exceeds a certain amount.
What children were previously eligible for the tax credit?
Currently the child tax credit applies to children at least 1 year old and under 5 years old.
Last year, a bill passed through the Legislature which raised the maximum age up from under 4 years old to under 5 years old.
Strong said he is unsure if the child tax credit will continue to expand from here and he hasn't spoken with anyone about it yet.
What is the cost of this bill?
This expansion of the child tax credit will come with a cost to the government. It will reduce the amount of taxes collected by the sate by $4 million.
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Caitlin Keith
