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House approves tax credit for employers offering paid family and medical leave
Summary
The Utah House passed House Bill 278, an opt-in tax credit to incentivize employers to provide paid family and medical leave. The sponsor said the measure aligns with a recent federal tax credit and is intended to support workforce participation; the bill passed 38–28.
On March 1 the Utah House approved House Bill 278, which creates an opt-in tax credit for employers that provide paid family and medical leave. Representative Edwards, the bill sponsor, told the chamber the proposal mirrors the federal tax credit and is designed to help employees remain in the workforce when they must take short-term leave for family or medical reasons.
Key provisions noted on the floor: the credit is optional for employers, would apply to businesses that provide at least two weeks of paid family leave for full-time employees (and a pro rata option for part-time employees), and requires qualifying employees to have worked at least one year and a minimum percentage of prior compensation to be eligible. The sponsor said the fiscal note is scalable by adjusting the state match percentage of the federal credit.
Lawmakers asked about long-term fiscal implications; the sponsor said the measure supports workforce retention, which can broaden the tax base over time. After discussion the bill passed the House 38–28 and was transmitted to the Senate for consideration.
Next steps: Transmittal to the Senate; further detail or modification could occur in committee or on the Senate floor.
