Ask legislators to support child care for workforce development!

Ask legislators on the House Revenue and Taxation Standing Committee to pass HB 89 and HB 187!

Child care has become a serious workforce issue in our state, with the lack of availability and high cost of childcare putting undue strain on Utah families and businesses alike. Even when families are able to secure childcare, the costs are unaffordable. It is estimated that nearly 63% of Utah families can not afford the rising costs of childcare. 30% of Utah parents have had to reduce hours due to lack of adequate childcare, impacting income and housing stability. Lack of childcare also contributes to the skilled workforce shortage and causes employee absenteeism, which costs US businesses $4.4 billion per year.

Investment in child care supports and attracts the workforce of today, while ensuring the development and success of the workforce of tomorrow. HB 89 and HB 187 improve access to the quality, affordable child care for Utah families that is critical to a healthy, prosperous economy.

Simply scroll down and click “Start Writing” to ask the House Revenue and Taxation Committee members to vote YES on HB 89 and HB 187.

What would HB 89 Workforce Development Incentives do?

HB 89 directs the Governor’s Office of Economic Development (GOED) to consider, as part of any applications for economic development incentives, whether a company has in place a robust plan for Working Parent Benefits. Companies can receive an income tax credit for providing childcare on site or close by, paid family care leave, flexible hours, partnerships with childcare entities to ensure placement, and a flexible spending account for childcare. HB 89 will help businesses address the persistent workforce need for affordable child care solutions

What would HB 187 Employer Tax Credit for Child Care do?

HB 187 would create a state income tax credit and other incentives to any employer providing or subsidizing child care for its employees during their working hours. Care facilities must be licensed by the state and the credit will be equal to 50% of the qualified child care expenses. The bill creates a cap of $50,000 per business. Statewide, $500,000 would be offered in credits annually through the Governor’s Office of Economic Development until the program sunsets in five years or is extended. HB 187 rewards businesses for becoming part of the childcare solution to build a prosperous economy and strong workforce.

(Remember to personalize your comments for the greatest impact! Why do YOU support this proposal?)

  • State and local government, the nonprofit sector, and private and public child care providers are already working hard to meet the pressing workforce need for reliable child care. We need an equal investment from the business sector. Employers must pitch in to help their employees who need childcare solutions in order to be productive members of Utah’s workforce.
  • According to the US Department of Health and Human Services, affordable childcare should cost no more than 7% of a family’s income. However, in Utah care for an infant costs 14% of a median family’s income and 65.9% of a minimum wage income per year. A single parent with two children can pay around 60% of annual income childcare alone.
  • The childcare industry has reached market failure. Encouraging businesses to invest in childcare can foster economic development and increase accessibility to childcare.
  • Ultimately, HB 89 will help businesses as well as families. Business leaders acknowledge that their ongoing top concern is a skilled workforce shortage. Research shows again and again that offering childcare solutions significantly improves employers’ ability to attract and keep skilled workers. When we tear down barriers to workforce participation, companies end up with a better recruitment, employee retention, a diverse workforce and a better bottom line.
  • HB 89 encourages more private sector partners to offer some type of quality child care policy to their employees. The list of qualifying options is broad and flexible, providing discretion and flexibility to the private sector in return for supporting their workforce.
  • Creating a targeted tax incentive with HB 187 will help Utah businesses fill workforce gaps, help families who are struggling to pay high costs of care, and help child care providers with needed investment from businesses to increase quality.
  • Businesses are struggling to retain and attract quality employees. HB 187’s tax credit for those that subsidize child care costs will allow them to be competitive and retain working parents that would otherwise leave the workforce due to the high cost of care.
  • By partnering with private industry, the state would encourage investment into the child care sector that has reached market failure. In fact, 16 states have established some form of an employer tax credit like the tax credit proposed in HB 187.
  • HB 89 and HB 187 benefit businesses as well as families. According to the U.S. Chamber of Commerce Foundation’s Center for Education and Workforce, when companies provide child care benefits, employee absences decrease by up to 30% and job turnover declines by as much as 60%.

How to make sure your letter is successful:

  1. Use a clear and specific subject heading.
  2. Start with a salutation (“Dear …”).
  3. Be CIVIL, PERSONAL and as CONCISE as possible.
  4. Mention that you are a CONSTITUENT and include your full address with zip code.
  5. Sign your name at the end.

Write Your Letter Here

Leave A Comment

Go to Top