A bill expanding Utah’s child tax credit to include children under 5 years old passed the Utah Legislature Wednesday, the same day lawmakers gave final approval to a nearly $170 million income tax cut.

The up to a $1,000 nonrefundable income tax credit had been available only for children at least one years old but under 4. But the age limit to claim the credit was raised in HB153, a bill sponsored by Rep. Susan Pulsipher, R-South Jordan, that was substituted earlier in the session to also address residential child care providers.

The legislation is expected to save some 5,600 taxpayers in the state an average of $410 for a total of $2.3 million starting in the 2025 tax year. The child credit phases out as reported income rises above $43,000 for taxpayers filing as single or as the head of a household, or $53,000 for those filing joint returns.

The bill narrowly passed 15-12 in the Senate Tuesday night, with opposition centered around provisions easing restrictions on home-based child care providers. An amendment made in the Senate to limit the number of children under three years old that could be cared for by providers operating without a license was signed off on by the House Wednesday.

Also Wednesday, the House passed SB69, which reduces the state’s income tax rate from 4.65% to 4.55%. What will be a third year of income tax reductions was a top priority of the Legislature’s Republican supermajority. The price tag for the tax cut rose from $160 million to nearly $170 million, due to an anticipated increase in revenue collections.

Although Democrats in the House and the Senate have opposed another tax cut this session, three members of the minority party in the House joined all Republicans in passing SB69 on a vote of 55-11: Minority Caucus Manager Rosemary Lesser, D-Ogden; Rep. Ashlee Matthews, D-Salt Lake City; and Rep. Andrew Stoddard, D-Sandy.

Rep. Kay Christofferson, R-Lehi, the House sponsor of SB69, said when productivity is taxed, “it stifles our economy” and that he trusts “people to do what they need to do with their own money, their hard-earned dollars. Doing this, it helps to ensure that Utah remains a great place to live, work and raise a family.”

But Rep. Marsha Judkins, R-Provo, said while she supports the tax cut, “we do have to consider the opportunity costs of this.” Judkins pointed out that “great needs” aren’t being funded and she mentioned the state’s efforts to keep up with affordable housing demand, saying, “If we keep growing our economy and bringing people in for that, we’re just perpetuating the problem.”

Both bills now go to Gov. Spencer Cox for his action.