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House approves tax credit to encourage employers to hire people experiencing homelessness
Summary
HB 274 creates tiered tax credits for employers hiring people defined as homeless, with verification through existing workforce and shelter programs and a sunset review provision; the House passed the bill 41–23.
The House passed HB 274 to provide tax credits to employers who hire individuals defined in the bill as homeless. Representative King, the bill sponsor, described a graduated credit: $500 for an employer for every six-month period an eligible part‑time worker (20+ hours/week) is employed, $1,000 after a six‑month full‑time period, and up to $2,000 for a full year of full‑time work. King also said the bill contains a sunset provision to allow review of effectiveness after the initial period.
"This bill provides for a $500 tax credit to an employer who hires an individual who is defined under the bill as homeless for every 6 month period that that individual works at least 20 hours a week," King told the floor. He noted the bill carries a fiscal note of about $500,000 against the education fund and said the sponsor and stakeholders expect the measure to be another tool combined with Department of Workforce Services and nonprofit efforts.
Floor debate highlighted verification and mechanics. Representative Hughes and others asked how homelessness would be verified and whether employers would be responsible for verification; King replied that the bill’s definition ties eligibility to clients of designated shelters and federal homeless-assistance programs (for example, The Road Home and Palmer Court) and that employers working with DWS and nonprofit partners would have established referral pathways.
Critics raised concerns the credit could pick winners and losers or create perverse incentives, and that small-business tax structures (S corporations/pass-throughs) might not allow some employers to claim credits directly. Supporters emphasized long-term benefits of moving people from assistance into work and said the sunset allows reassessment.
The House voted 41–23 to pass HB 274; the bill will be transmitted to the Senate.
What’s next: The Utah State Tax Commission and Department of Workforce Services will need to publish guidance on verification and claims if the Senate and governor enact the law.
