The Utah State Legislature adjourned its 2025 session on March 7, and in its wake, NFIB Utah managed to help successfully lobby for the passage of two bills that will continue to burnish the state’s reputation as one of the top pro-small-business states in the nation.

Won Income Tax Reduction

Working with State Rep. Kay Christofferson, NFIB succeeded in helping pass House Bill 106, which reduces Utah’s individual income tax rate from 4.55% to 4.50%. Many small businesses in Utah are structured as pass-through entities (sole proprietorships, partnerships, or S corporations). This means that business profits are taxed at the owner’s individual income tax rate. Therefore, the reduced income tax rate directly translates to tax savings for these small business owners.

This bill also amends the corporate franchise and income tax rates, enacts nonrefundable corporate and individual income tax credits for employer-provided child care, and allows a taxpayer to claim the nonrefundable child tax credit for child dependents under one year old and up to five years old.

Obtained Liability Reform for Small Business Owners

The original version of House Bill 24 raised significant concerns among small business owners by initially proposing to  expand liability for employers who hired individuals with criminal records, potentially exposing employers to lawsuits if those employees engaged in subsequent harmful acts.

This would have placed a disproportionate burden on small businesses because the only way to avoid the liability would have been to implement ongoing drug testing programs and increasing background checks during the hiring process.

Due to pressure from NFIB, the bill underwent significant amendments. The final version cut all the liability provisions out of the bill. This is a very positive outcome for small businesses.

The amendments to HB24 and the passage of HB106 represent positive developments for small businesses in Utah. HB24’s reduced liability provisions provide crucial protection, while HB106’s income tax reduction offers direct financial benefits. These measures can contribute to a more favorable business environment, fostering growth and prosperity for Utah’s small business community.

Related web story: NFIB Utah Working to Stop Anti-Employer Legislation.

Monitored Private Employer Verification Amendments

House Bill 214 sought to amend provisions related to the Private Employer Verification Act, which would have affected a private employer who employs 15 or more employees. It cited criminal penalties that may be applicable to the use of fraudulent identification documentation or another person’s identification documentation for purposes of obtaining employment. In the end, the bill died in its house of origin.

Thank you, NFIB members

No one commands the attention of legislators more than small business owners from their districts. Lawmakers know the influence of small business owners goes much wider and deeper than just the running of their enterprises, it spreads throughout entire communities.

NFIB Utah thanks its members who responded to the Action Alerts on legislation sent them this year and who attended our Small Business Day on February 4. Your involvement mattered.